16 September 2016 08:04

N8 calls on Prime Minister to support northern innovation & to address Brexit funding uncertainties.

The value to the economy of the eight most research-intensive universities in the Northern Powerhouse region is almost double that of the entire Premier League, a report reveals today.

The N8 universities contribute £6.6bn of GVA (gross value added) to the Northern economy per year.*

The scale and breadth of the economic impact of the universities is revealed in a report by the N8 Research Partnership – The Power of 8: Knowledge, Innovation and Growth for the North – launched today.

The report also reveals the universities of Durham, Lancaster, Leeds, Liverpool, Manchester, Newcastle, Sheffield and York together delivered a total of 119,000 FTE jobs - equivalent to all the jobs within a city the size of Salford.

And it found that the N8 universities attracted £1.26bn of research funding per annum.

The report also highlights the importance of EU funding with some 13%, or £127m, of competitive research funding for the N8 universities coming from the European Union.

Professor Mark E. Smith, Vice-Chancellor of Lancaster University, said: “This report demonstrates the very significant positive contribution of Lancaster University and its partner institutions across the North of England, helping to create jobs and prosperity in our local communities.

“Lancaster University is strongly focused on working with business and has helped create more than 4,000 jobs through working with more than 5,000 SMEs.

“Our work to support businesses and the economy has been recognised by the inaugural Educate North Awards and an independent assessment identified Lancaster University to be worth at least £250 million to the regional economy, supporting more than 5,200 jobs, and worth £630m to the national economy, protecting more than 10,000 jobs.

“This review also revealed Lancaster’s business engagement projects, which are all research-informed, boosted the North West’s economy by £15.80 for each public sector pound received – demonstrating an outstanding return on investment.”

The research by the N8 Research Partnership, the collaboration body for the northern research-intensive universities, and Viewforth Consulting, was launched today at an event in Leeds.              

The findings prompted calls by Professor Koen Lamberts, Vice-Chancellor of the University of York and Chair of N8, for Prime Minister Theresa May to accelerate the Government’s plans by increasing investment in infrastructure and innovation in the North.

Professor Lamberts said: “This research paints a compelling and comprehensive picture of the contribution our universities make to the Northern economy, creating jobs and prosperity for people from all walks of life.  It makes abundantly clear that N8 universities are not just world-class research institutions, but also major economic enterprises, generating significant revenue and economic activity and driving inward investment.

“The Government’s Northern Powerhouse agenda can and should play a major role in creating an environment that enables our universities to generate even more benefit to the Northern and wider UK economy.

“Such benefit can only come, however, if there is further investment in innovation in the North: in inward investment, in transport and infrastructure. 

“We need to be able to attract and retain the world’s most talented academics, researchers and students; we need to ensure that our students, staff and partners can easily access our world-leading facilities; and we need to attract innovative overseas businesses so that we have a genuinely international innovation and enterprise eco-system.”

The report highlights the role played by the N8 universities in helping to establish new businesses, the commercialisation of innovation, and the development of the next generation of entrepreneurs.

Key findings include:

  • N8 universities attract annual research income of £1.26bn, 88% of all Northern Higher Education research income
  • Their economic activity is worth a total of £12.2bn to the Northern economy
  • N8 universities contribute a larger share of North of England Region GVA than the entire Northern media Industry, agriculture, or motor vehicle manufacturing, sectors
  • N8 universities provide consultancy services to more than 17,000 small and medium-sized businesses (SMEs)
  • The N8 universities have a 10-year track record of successfully collaborating across the region
  • 13% of the N8 universities’ research funding comes from European Union sources

Professor Lamberts also encouraged the Government to resolve uncertainty over international research funding for UK universities in light of the Brexit vote.

He said: “While some uncertainties remain because of the Brexit vote, we should be confident that we can face the challenges this may bring. The N8 universities have always been global in outlook, focused on contributing to the world beyond the lecture hall or campus and this will continue despite the referendum result.  The UK has some of the best universities in the world and our academics, researchers and students play a significant part in that success.

“However, we believe the Government must act swiftly to address the potential gap in research funding that might arise through our withdrawal from the EU.  Such funding is essential if we are to retain our global standing and attract the brightest and best talent.

“It also plays a significant role in research and innovation, which directly leads to UK business creation and employment growth.”

The report has been endorsed by Former Deputy Prime Minister, the Rt Hon Lord Heseltine who, writing in it, says the findings show that the research-intensive universities of N8 can be at the forefront of a rejuvenated Northern economy, and play a central role in strengthening and stabilising industries through new ideas, innovations and insights.

He said: “As  the devolution of important powers to cities and regions moves forward, partnerships between cities and universities can provide a clear voice of leadership and ideas, and can create a high-skill, innovation-driven future.

 “I believe and expect the N8 universities, working individually and together, to be at the forefront of a rejuvenated Northern economy.”


*: N8 Universities’ economic impact as measured in GVA includes direct activity, knock-on activity and student body impact ion 2014/2015. Ernst & Young (EY) Economic Impact Assessment of the Premier League, published May 2015, indicated a GVA contribution of £3.4bn in the 2013/2014 season.