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Whyinvest inuniversities?

Universities UKThe funding environmentfor universitiesUniversities are essential for the UK’s modernknowledge economy. The UK has a universitysector that many other countries aspire to emulate.Our academics are world leaders in research andinnovation, our graduates are in demand worldwide,and our universities attract business and investmentto all regions of the UK.However, in the absence of sufficient and sustainedinvestment, the UK’s research base and university sectorwill fall behind key competitors. As the 2015 spendingreview approaches, there remain a number of majorfinancial challenges that must be overcome.The UK has invested significantly less in research as aproportion of GDP than many other countries. 1 The UK’stotal research and development (R&D) expenditure was1.72% of GDP in 2012 and has been around 1.8% of GDPsince the early 1990s. In comparison, in 2012 the EU-28provisional estimate was 2.06% of GDP and the OECDaverage was 2.4%.Public funding for research offers high returns and hasbeen shown to encourage greater investment in R&D fromthe private sector. UK research is exceptionally strong andefficient, and delivers great economic and social benefits.But it will not be possible to sustain this positivetrajectory in the long term unless investment in UKresearch is increased.There remain uncertainties around funding for learningand teaching. In England, significant reforms in 2012–13temporarily reversed a decline in resource available perstudent. However, with the tuition fee for undergraduatestudents from the UK and the EU capped at £9,000, itsvalue is being eroded considerably by inflation. This,coupled with uncertainty in domestic and internationalstudent recruitment and research income, creates aninsecure financial environment for universities. Thismay constrain their ability to invest in infrastructureand improvements to teaching in the long term. 22 — Why invest in universities?

Universities UKUniversities have worked strategically to make sure theyspend every pound effectively and efficiently. In England,universities have consistently met efficiency targets setby the government. Between 2005 and 2011 they reported£1.38 billion of efficiencies against a cumulative targetof £1.23 billion. 3Universities are committed to maintaining their focuson efficiency and have identified areas where furtherimprovements can be pursued. However, efficiency gainsalone cannot continue to make up for underinvestmentin university research or declining funding for teaching.Universities need sufficient and sustained investmentto allow them to maintain their powerful and positivecontribution to society and the economy.Why invest in universities?The government should invest in universities because:Supporting universitiesis supportingthe future of the UK.Invest in universitiesto maintain theUK’s internationalcompetitiveness.• Universities transform people’s lives through educationand through the wider impact of their research.• Universities help students to develop the skills andknowledge employers need.• UK university research is academically world leadingand more cost effective than anywhere else in the world,providing the ideas and inventions on which futureprosperity will be founded.• University research benefits everyone – creatingbusinesses and jobs, enriching society andstimulating culture.• Universities help to ensure that the UK remainscompetitive in the global market by supportinggreater business innovation and export-led, knowledgeintensivegrowth.• Universities’ international success helps secure theUK’s share of global growth and influence.• Universities are anchor institutions in their regions –they are essential for vibrant local economies and aredrivers of innovation and business development.• Universities are major contributors to the UK economy,generating £73 billion of output in 2011 alone.• Universities have transformed themselves in many waysover the past decade, including becoming more efficientand cost effective.Why invest in universities? — 3

Universities UKUniversitiestransformpeople’slives througheducationand throughthe widerimpact of theirresearch.In 2014, young peoplefrom disadvantagedbackgrounds in Englandwere 60% more likely toenter higher educationthan they were in 2006.Over 2.3 million students are registered at UK highereducation institutions. These students come from allwalks of life. They will experience the social, culturaland economic benefits of higher education and, inturn, translate those into benefits for society andthe economy.UK graduates are more likely to be employed thannon-graduates 4 and their long-term employmentprospects remain strong, with 74% of new jobscreated by 2020 expected to be in occupations withhigh concentrations of graduates. They enter a rangeof careers in which the knowledge and higher-levelskills they developed at university help to increaseproductivity, enterprise and innovation.In 2014, young people from disadvantaged backgroundsin England were 60% more likely to enter higher educationthan they were in 2006. 5 Furthermore, evidence showsthat universities continue to give a diverse student bodythe support needed to complete their degree. The UK’shigher education non-completion rates are very low, andamong the best in the world. This success is underpinnedby a commitment from universities and the governmentto improve access to higher education and levels ofstudent retention and success. 6Universities do not only change lives through education,but also through the wider impact of their research. Theyprovide the ideas and inventions on which future prosperitywill be founded, making a difference to people’s lives inthe UK and globally.University research helps to:• meet the grand challenges of the 21 st century, suchas overcoming resource scarcity, ensuring globalfood security and tackling global warming• shape policies in areas like international relations,health and education• discover and develop the technological advancementsthat will create new opportunities for how we liveour lives• cure diseases and innovate models of service and care• enrich lives through culture and the arts• support overseas development4 — Why invest in universities?

Universities UKUniversitieshelp studentsto developthe skills andknowledgeemployersneed.Employers increasingly need recruits with higher levelskills. By 2022 there will be 2 million additional jobs inoccupations requiring higher level skills, with the totalemployment share set to increase from 42% to 46%of all those in employment. 6Business surveys, student satisfaction surveys andemployment data show that university courses continueto produce the best learning and labour market outcomesfor employers and for graduates. 7,8 Taken together, thissuggests a clear correlation between high level skills,university degrees and high-growth areas of the jobsmarket.Many universities engage actively with employers to meettheir needs as well as those of a diverse student body,who indicate increasingly clearly that they value help andtraining to increase their future employment prospects. 9Some businesses present a variety of unique skillchallenges that are difficult to meet other than throughemployer-led, bespoke and flexible alternative learningpathways. A recent survey of 161 UK higher educationinstitutions found that 93% offer short bespoke coursesfor businesses on campus or on business premises. 10Examples of strong collaborations between universitiesand employers in course development or delivery include: 11By 20222 MILLIONmore jobs will requirehigher level skills.• the University of Sheffield’s Advanced ManufacturingResearch Centre, which offers apprenticeshipsand opportunities for fully-funded progression todegree level education and beyond, designed tomeet the practical and academic skills needs ofmanufacturing companies• the University of South Wales’ collaboration withBritish Airways, in which students graduate with botha degree in aircraft maintenance engineering and theindustry-standard EASA professional license underBA’s accreditation• the University of Derby’s higher apprenticeship inmineral products technology, which aims to addressthe skills needs of the mineral products industry;the course is designed in partnership with industryorganisations and leading professional bodies,and combines the development of practical skillsand the acquisition of knowledge in one highereducation qualificationUniversities therefore play an important part in meetingthe learning needs of students and the skills needs ofemployers, both through their more traditional modelof three-year undergraduate study and by developing aWhy invest in universities? — 5

Universities UKbroader range of pathways to higher skills, including parttimestudy for mature students and those already in work.A 1% increase in theshare of the workforcewith a university degreecan raise the level oflong-run productivity bybetween 0.2 and 0.5%.Graduates and returning workers, as well as applyingand sharing the knowledge developed during theirstudies, will permanently raise their employers’ capacityto initiate and carry out innovation activity. Researchsuggests that graduate skills accumulation contributedto roughly 20% of GDP growth in the UK from 1982 to2005, and that a 1% increase in the share of the workforcewith a university degree can raise the level of long-runproductivity by between 0.2 and 0.5%. 12Universities also play an important part in supporting thepublic sector, supplying the doctors, nurses and otherhealth professionals, teachers and social workers thecountry needs. Their provision in these areas is highlyvalued and informed by the latest research. For example,a recent comparative study concluded that increasingthe number of nurses with bachelor degrees couldreduce the number of preventable hospital deaths. 136 — Why invest in universities?

Universities UKUK universityresearch isacademicallyworld leadingand more costeffective thananywhere elsein the world.46%Internationallyexcellent3%Recognised nationally30%World leading20%Recognisedinternationally76%of research submittedto REF 2014 was rated‘world-leading’ or‘internationally excellent’.The UK’s research base is strong and exceptionallyefficient. Although the UK represents just 3.2% ofglobal R&D expenditure, it accounts for 9.5% ofdownloads, 11.6% of citations and 15.9% of the world’smost highly-cited articles. 14Recently, the UK overtook the United States to become themajor global research nation with the highest field-weightedcitation impact in the world (1.6 times the world average).The 2014 Research Excellence Framework exercise rated76% of the research submitted as world leading (4*) orinternationally excellent (3*) – a further testimony to thewell-rounded excellence of UK university research. 15The research base performs very well compared to thatof other nations. However, the UK’s investment in R&Das a percentage of GDP remains significantly below theOECD and EU averages. 16 It is vital that the UK narrows thegap between its investment in science and innovation andthat of key competitors, to help our research base attractmore talent and investment from abroad and maintainexcellence in the long term.• The UK’s total R&D expenditure was 1.72% of GDPin 2012 and has been around 1.8% of GDP since theearly 1990s. 17• In 2012, the EU-28 provisional estimate was 2.06%of GDP and the OECD average was 2.4%.• The UK’s public R&D expenditure was 0.44% in 2013, 18the lowest in the G8 group of countries.In comparison:• The United States spends around £250 billion (2.8%of GDP) on R&D per year.• South Korea doubled its expenditure on R&D between2003 and 2011 to around £35 billion (4.0% of GDP).• Countries such as Germany and France haveconsistently invested more than 2% of their GDP in R&Dand aim to increase this to 3% or more in the future.Public funding plays a critical role in supporting the kindof long-term, speculative inquiry that leads to the significantbreakthroughs fundamental to economic growth.Discoveries such as fibre optics, stem cells and graphene,the development of technologies like computers andthe internet, and medical breakthroughs such as theHepatitis B vaccine, the portable defibrillator and moderninfertility treatment were all underpinned by the workof academic researchers from UK universities. Theymay not have occurred were it not for publicly fundedresearch departments.Why invest in universities? — 7

Universities UKUniversityresearchbenefitseveryone –creatingbusinesses andjobs, enrichingsociety andstimulatingculture.A ONE-OFF 5%(£450 million)increase in publicspending onR&D...The value of university research is significant and farreaching. The 6,679 impact case studies submitted byinstitutions as part of the 2014 Research ExcellenceFramework exercise demonstrate the economic,cultural and social benefits of their research.Universities and their graduates have the knowledgeneeded to drive innovation, improve products and services,and help the country become more productive.University research makes economic sense. Analysissuggests that investment in R&D typically has a rateof return of between 20 and 50%. 19 This means that forevery £1 spent by government on R&D, private sectorR&D output rises by at least 20p per year.However, the real rate of return could be significantlyhigher than this. An increasing body of research finds anassociation between public R&D expenditure and privateR&D; provided this effect is causal, this would make therate of return of public investment in R&D even larger.For example, a report by HEFCE estimates that a 10%increase in QR (quality-related) funding could lead to a2% increase in third stream income such as consultancy,licensing, and contract research for industry. 20Even taking the lower estimate of a 20% return on publicR&D expenditure, a 5% (or £450 million) increase in thescience and research budget could permanently raiseprivate sector output by at least £90 million every year.This is estimated to be worth £1.8 billion to the economyin the long run.But the benefits of university research extend far beyonddirect economic impact. University research has beenshown to deliver a wide range of social and cultural benefits:£90£80£70£60£50£40£30£20£10...could permanentlyraise private sectorproductivity byat least£90MILLIONA YEARworth £1.8 billionin the long run• It improves the health and wellbeing of people in theUK and around the world.• It informs and supports policy-making in areas likeeducation, health and the environment.• It stimulates debate and increases public engagementon key social, cultural and political issues.• It fosters the culture and arts that enrich our livesand make the UK and its regions appealing to visitorsand investors.8 — Why invest in universities?

Universities UKUniversitieshelp to ensurethat the UKremainscompetitivein the globalmarket bysupportinggreaterbusinessinnovation andexport-led,knowledgeintensivegrowth.Businesses that engage inpartnerships with universitiesare at least:Universities are the UK’s innovation hubs. They play animportant part in supporting business to drive product,process and service innovation. In turn, innovation is akey driver of economic growth and plays a critical rolein increasing productivity.Research commissioned by the Department forBusiness, Innovation and Skills 21 shows that businessesthat engage in partnerships with universities and publicsector research establishments:• are more likely to invest in R&D themselves (+161%)• perform significantly better on process and productinnovation (respectively,+40% and +45%), sales ofnovel products (+72%), STEM skills (+28%) and useof technical information (+57%) than similar firmsover a three-year period.Universities support business research and innovationthrough a range of knowledge exchange activities.The UK ranks second in the world for research-baseduniversity-business collaboration, and evidence suggeststhat engagement between universities and third partiesis increasing. University income from knowledgeexchange activities grew by over 60% between 2003–04and 2012–13. 22Universities play an important part in commercialisinginnovative ideas. They commercialise their ownresearch through investment in academic spin-offs,with some 130 new university-owned or part-ownedspin-off companies being established in 2013–14 alone,creating nearly 11,400 new jobs. 23Graduates and local residents looking to start a newbusiness can also benefit from support from universities.Universities promote entrepreneurial talent througheducation and entrepreneurship support services. Thishelps graduates and local residents gain the confidence,skills and tools needed to start their own business. Over4,600 new graduate start-ups were set up in 2013–14,employing over 18,500 people. 2440%more innovativethan similarfirms that don’t161%more likelyto investin R&DPublic investment in universities’ innovation activitiesdelivers excellent value for money. In England, the HigherEducation Innovation Fund (HEIF) produces a return of£6.30 per £1 spent 25 – plus a further £3.36 in additionalturnover from student start-ups and spin-offs. 26Why invest in universities? — 9

Universities UKUniversities’internationalsuccess helpssecure theUK’s share ofglobal growthand influence.The excellence of the UK’s university system dependson its international success.International higher education is one of the UK’s leadingexports, with earnings estimated at £10.7 billion in 2011.The spending of non-EU students on fees and living costssupported 137,000 FTE jobs in 2011–12, spread acrossthe UK. Furthermore, international higher education hassignificant trade and diplomatic impact; many internationalalumni retain professional links with the UK. 27International students account for 12% of universityincome and sustain courses in science and technologysubjects where domestic demand alone is insufficient.Employers want culturally aware and well-roundedgraduates, something reflected in the fact that a lowerproportion of internationally mobile graduates areunemployed. UK students recognise this – record numbersof them are gaining overseas experience – but the UK lagsbehind EU competitors.International engagement and collaborationstrengthens the success of UK research and is vital toaddress global challenges. 28 Twenty-three per cent of UKuniversities’ research grants and contract income is fromoverseas, 29 almost half of UK academic publications areinternationally co-authored, two-thirds of researchershave an international affiliation and one-quarter ofacademic staff are from overseas. Working internationallyallows researchers to pool their expertise and resourcesto achieve more together - solving challenges fromclimate change to international development requiresglobal teams and infrastructure that no one countrycan assemble alone.International higher education isone of the UK’s leading exports,with earnings estimated at£10.7 BILLIONin 2011.The UK is world leading in a global growth marketfor education. It enjoys the second largest share ofinternational students in what is predicted to be a growthmarket. 30 However, despite the UK’s strong reputationand growing global demand, recruitment to the UK hasstagnated in the last four years. 2012–13 saw the firstdecline in the number of international students on record.Recent growth of 2% lags behind key competitors suchas Canada (11%), Australia and the US (8% each) whoare investing heavily in promoting their higher educationsystems internationally and stand to gain from our relativeunderperformance, both in the short and longer term.10 — Why invest in universities?

Universities UKUniversitiesare anchorinstitutions intheir regions– they areessential forvibrant localeconomies andare driversof innovationand businessdevelopment.Universities are engines of regional growth, 31supporting the rebalancing of the UK economy andhelping regions to achieve their economic potential.By creating local jobs, supporting local innovation andattracting investment and talent, they help provide thefoundations for the development of regional economicpowerhouses:• Universities attract knowledge-intensive businesses,often forming a natural centre for business clustersand innovation hotspots.• Universities play an important role in attracting foreigndirect investment: they ensure that a strong talent poolis available for local companies, they are a globallyrecognised source of research and innovation, andtheir reputation allows them to act as economicambassadors for their local areas.• Universities provide services, expertise andinfrastructure to local businesses and residentson their doorstep.• Universities are often the largest employers in theirlocality and many jobs are dependent on the expenditureof universities and their students.They are in an ideal position to take the lead on significantsocio-economic issues at a local level. This is due totheir knowledge and expertise, but also because theyare anchored in their local area. They can help to identifyeconomic and social opportunities in their regions and tosolve the issues that affect local policymakers, businessesand residents:• Universities help to shape local economic strategies.For example, their engagement with their LocalEnterprise Partnership (LEP) is a critical aspectof local innovation and growth. Many universitiessupported their LEPs in the development of theirEuropean Structural Investment Fund strategiesand Strategic Economic Plans. 32• Universities link research and teaching prioritiesto local economic and social needs.• Universities promote public engagement,community wellbeing and active citizenship skills.Why invest in universities? — 11

Universities UKUniversitiesare majorcontributorsto the UKeconomy,generating£73 billionof output in2011 alone.Universities achieve more output than advertisingand market research, computer manufacturing andlegal services, and generate more GDP per unit ofexpenditure than other sectors including health,public administration and construction.In academic year 2011–12, the most recent for whichfigures are available: 33• Universities generated over £73 billion of output.• Universities contributed over £36.4 billion to UK GDP.Off-campus expenditure of international students andvisitors contributed a further £3.5 billion. In total, thiscontribution came to over £39.9 billion, equivalent to2.8% of GDP in 2011.• For every 100 jobs at universities a further 117 weregenerated in other sectors of the economy.• Universities directly employed almost 380,000 peopleand a further 370,000 full-time-equivalent (FTE) jobsin other sectors of the economy were dependent onthe expenditure of universities. This accounted for757,268 FTE jobs throughout the economy and wasequivalent to 2.7% of all UK employment in 2011.Evidence suggests that universities support further longtermcontributions to the UK economy. For example, onaverage each graduate contributes an extra £80,000 in taxand social contributions compared to non-graduates. 34In 2011–12,universities andtheir expenditureaccounted for 757,268jobs, or 2.7% of all UKemployment.The UK excels in higher education exports, with thesecond largest share of the global market, behind onlythe United States. The higher education sector generatedan estimated £10.7 billion of export earnings for the UK in2011–12, 35 £7.2 billion of which was from expenditure byinternational students on fees and living costs. The valueof higher education exports grew by an estimated 25%between 2008 and 2015.Twenty per cent of the £73 billion output generated by thesector in 2011–12 depended on the expenditure of studentsfrom outside the EU. Because both universities and theirstudents purchase the vast majority of their goods andservices from local businesses, the benefits of theirexpenditure are largely retained locally.12 — Why invest in universities?

Universities UKUniversitieshavetransformedthemselvesover thepast decade,becomingmore efficientand costeffective.Between 2005 and 2011English universities reported£1.38 billion of efficienciesagainst a cumulative governmenttarget of £1.23 billion.£1.23 BILLIONgovernment target£1.38 BILLIONof efficiencies deliveredUniversities are committed to making every poundof public and private investment count – maximisingopportunities for growth, leveraging support fromother sources, and providing excellence and valuefor students.International comparisons carried out by the EuropeanCommission show that the UK is a ‘top performer’ in usingresources effectively, in both teaching and research. 36Universities in England have consistently met efficiencytargets set by government: between 2005 and 2011 theyreported £1.38 billion of efficiencies against a cumulativetarget of £1.23 billion. 37Universities UK’s research has found that, in England:• Over the last 10 years, efficiency gains from better useof university space are estimated to total £886 million.• In research funding, universities have so far delivered£194 million of savings on research council awards,against a cumulative target of £187 million.• Significant investments in carbon and energy reductionhave prevented 1.2 billion kg of additional carbondioxide equivalent emissions being released.Universities have responded strategically in the currentfunding environment, drawing on internal resourcesand borrowing to make up a shortfall in capital fundingand enhance the student experience. This has enableduniversities to continue to deliver world-class teachingand research, as well as maintaining the scale of theircontributions to society.A government survey of universities in England and theirstudents’ union representatives found that universitieswere investing significantly in enhancing the studentexperience, with many universities reporting increasedstaff support, improvements to teaching spaces, 38 smallerclasses, and increased contact hours with academic staff. 39However, universities’ ability to continue to do this in thelong term could be challenged. The combination of thereal-terms erosion of tuition fees in England, the ongoingneed to invest to maintain the university estate, and moreuncertain and volatile income streams threaten to reducethe internal reserves that have been critical to universities’ability to invest in capital, staff development and thestudent experience. Failure to generate sufficient marginsfor reinvestment would be a significant threat to the longtermsustainability of universities.Why invest in universities? — 13

Universities UKUniversities’prioritiesand howgovernmentcan supportthemParticularly in the current economic environment, thegovernment will critically review public spending toensure that every penny invested delivers the intendedbenefits at maximum efficiency.Over the coming months, Universities UK will work withgovernment, civil servants and sector stakeholders todevelop detailed proposals as to how to meet the aims setout below and to examine the efficacy of current fundingstreams aimed at supporting university education andthe UK’s research and innovation base. This will requireclear recognition of the devolved nature of certain fundingstreams and the autonomy and diversity of the highereducation sector.Universities want to continue to:1. Provide high quality education that meets the UK’sknowledge and skills needs2. Provide opportunities for all people with theability and motivation to study at university tobe able to do so3. Deliver world-class research and supportinnovation4. Support the UK’s regions and provideopportunities for businesses to enhancetheir innovation capacity5. Attract investment and talent from abroad, andmaintain the UK’s international competitivenessin foreign markets1. Provide high quality education that meets theUK’s knowledge and skills needsTo help universities achieve this in England, the governmentshould:• ensure that universities have a sustainable income thatwill enable them to invest in the student experience andmaintain world-class provision• maintain sufficient support for high-cost subjects andsmall, specialist institutions so that universities cancontinue to provide high quality provision in areascrucial to society and the economy14 — Why invest in universities?

Universities UK2. Provide opportunities for all people with the abilityand motivation to study at university to be able to do soTo help universities achieve this in England, the governmentshould:• support undergraduate students with a progressive,sustainable and affordable funding system• develop, by 2016–17, appropriate financial supportfor postgraduate students, and create a one-off fundto provide financial support to students during theinterim period• continue to invest, along with universities, in fundingto support social mobility; the allocation of this fundingshould recognise the importance of attracting studentsto university as well as supporting a diverse studentbody while they are studying3. Deliver world-class research and support innovationTo help universities achieve this, the government should:• enhance investment in the UK’s exceptionally strongand efficient research and innovation base• commit to a long-term strategy to increase publicinvestment in R&D to at least the OECD average(as a proportion of GDP) over the next decade• maintain the dual support system for researchfunding and the current balance of funding betweenits two elements• channel research capital funding primarily throughour world-class university infrastructure4. Support the UK’s regions and provide opportunitiesfor businesses to enhance their innovation capacityTo help universities achieve this, the government should:• place universities at the heart of innovation and growthstrategies by increasing those recurrent, flexiblefunding streams for knowledge exchange that underpina range of innovation activities, such as the HigherEducation Innovation Fund in England.• continue to promote and incentivise collaborationbetween universities and businesses, charities andother universities/across sectors and institutions, andidentify and remove any funding barriers to engagement• in England, continue to encourage all Local EnterprisePartnerships to work closely with universities in theirregion to support innovation and enterprise, and therebycreate new skills, businesses and jobsWhy invest in universities? — 15

Universities UK5. Attract investment and talent from abroad, andmaintain the UK’s competitiveness in foreign marketsTo help universities achieve this, the government should:• sustain programmes valued by both UK and overseasstakeholders that support mobility and collaboration,such as the Chevening Scholarships, the Newton Fund,GREAT, Education UK, UKIERI, and UK China Partnersin Education• launch an international student growth strategy –backed by investment – to support internationalmarketing, mobility and partnerships; this shouldinclude an ambition to increase the number ofinternational students by at least 20% by 2020• communicate a welcoming and consistent messageto international students and staff and increasecollaboration across government to promotegrowth and diplomacy• enhance opportunities for qualified internationalgraduates to stay and work in the UK for a period,to contribute to the economy• support more UK students to study or gain workexperience overseas as part of their degree16 — Why invest in universities?

Universities UKEndnotes1. Department for Business, Innovation and Skills (2013)International comparative performance of the UKresearch base by Elsevier2. HEFCE Financial Sustainability Strategy Group (2015)The sustainability of learning and teaching in highereducation in England3. Universities UK (2015) Efficiency, effectiveness andvalue for money4. Office for National Statistics (2013) Graduates in theUK Labour Market 20135. UCAS End of cycle report 20146. UUK analysis and UKCES (2012) Working Futures7. HEFCE Higher Education-Business and CommunityInteraction Survey8. CBI/Pearson (2014) Gateway to growth: Education andSkills survey 20149. HEPI, HEA The HEPI–HEA Student Academic ExperienceSurvey 201410. Higher Education-Business and CommunityInteraction (HE-BCI) survey 2013–1411. Further details and case studies on universityemployercollaborations can be found in: UKCES/UUK(2014) Forging futures12. BIS (2013) The relationship between graduates andeconomic growth across countries, a report by NIESR13. RN4CAST (2014) Nurse staffing and educationand hospital mortality in nine European countries:a retrospective observational study14. Elsevier (2013) International Comparative Performanceof the UK research base15. Ibid.16. BIS (2013) International comparative performance ofthe UK research base by Elsevier17. Office for National Statistics, UK Gross DomesticExpenditure on research and development, 201218. OECD Main Science and Technology indicators,February 2015 release19. BIS (2014) Insights from international benchmarkingof the UK science and innovation system: A report byTera AllasWhy invest in universities? — 17

Universities UK20. HEFCE (2014) A review of QR funding in English HigherEducation Institutions21. BIS (2014) Estimating the effect of UK direct publicsupport for innovation22. HE-BCI Survey 2013–14, released March 201523. HE-BCI Survey 2013–1424. Ibid.25. PACEC (2014) Knowledge exchange performanceand the impact of HEIF in the English higher educationsector, report for HEFCE by TC Ulrichsen26. HEFCE (2015) Research to assess the nature and annualvalue of student start-ups27. House of Lords (2013) Persuasion and Power inthe Morden World; BIS (2013) The Wider Benefits ofInternational Higher Education in the UK. The BritishCouncil reports one in ten current world leadershave studied in the UK.28. E-Cordis data on Framework Programme 729. £1.17 billion in 2013–14, HESA Finance30. OECD (2014) Education at a Glance31. European Union regional policy (2011) Connectinguniversities to regional growth: a practical guide32. Universities UK (2015) University involvement in ESIF2014–2020 programme33. Universities UK (2014) The impact of universitieson the UK economy, report by Viewforth Consulting34. OECD (2014) Education at a Glance35. Universities UK (2014) The impact of universitieson the UK economy, report by Viewforth Consulting36. European Commission Economic and Financial Affairs(2009) Study on the efficiency and effectiveness of publicspending on tertiary education37. Universities UK (2015) Efficiency, effectiveness andvalue for money38. Deloitte (2014) The higher education finance directorssurvey 2014: The prudence paradox39. BIS (2014) Research paper no. 169: Improving thestudent learning experience – a national assessment18 — Why invest in universities?

For more detailed evidence and analysis of the roleuniversities play in the UK economy see our recent report,The economic role of UK universities.www.universitiesuk.ac.uk/highereducation/Pages/TheEconomicRoleofUKUniversities.aspx

This publication has been produced by Universities UK,the representative organisation for the UK’s universities.Founded in 1918, its mission is to be the definitive voice forall universities in the UK, providing high quality leadershipand support to its members to promote a successful anddiverse higher education sector. With 133 members andoffices in London, Cardiff and Edinburgh, it promotesthe strength and success of UK universities nationallyand internationally.Woburn House 20 Tavistock Square London WC1H 9HQTel: +44 (0)20 7419 4111Email: info@universitiesuk.ac.ukWebsite: www.universitiesuk.ac.ukTwitter: @UniversitiesUKISBN: 978-1-84036-343-2© Universities UKJune 2015To download this publication, or for thefull list of Universities UK publications,visit www.universitiesuk.ac.ukThis work is licensed under the Creative Commons Attribution-Non-Commercial-NoDerivatives 4.0 International License. To view a copyof this license, visit http://creativecommons.org/licenses/by-nc-nd/4.0/