Investment in university research infrastructure could unlock £1.9 billion in growth

Greater investment in university laboratories, research facilities, science parks and innovation districts could generate up to £1.9 billion in additional economic value over the next decade, according to new research from Lloyds Banking Group.

The report, Innovation Foundations, highlights a £10–20 billion gap in investment needed over the next decade if the UK is to maintain its position as a global leader in innovation. It finds that underinvestment in research infrastructure is limiting private sector R&D, spinout creation and local economic growth.

The research shows that universities with stronger research estates generate significantly higher levels of commercial activity. Research-focused universities in the top quartile for estate capacity generate an average of £24.9 million in private R&D income, compared with £1.5 million among those in the bottom quartile.

The report also found that average intellectual property income is more than 100 times higher among the best-resourced research-focused universities, while average spinout turnover is nearly 50 times higher. Universities located in areas with nearby science parks generate 57% more private R&D income, after accounting for other relevant factors.

Lloyds argues that research infrastructure should be viewed as a key driver of innovation and economic growth, helping universities attract investment, strengthen industry partnerships and accelerate the commercialisation of research.

Amanda Murphy, CEO of Business and Commercial Banking at Lloyds Banking Group, said: “The UK isn’t short of great ideas, world-class research or entrepreneurial talent. The challenge is turning that potential into lasting economic growth.”

The report emphasises that successful innovation ecosystems require more than new buildings alone. Investment in laboratories and research facilities is most effective when combined with wider support, including transport links, digital connectivity, housing, business networks and access to funding.

With demand for advanced research facilities continuing to grow, the findings highlight the importance of creating the infrastructure needed to support collaboration between academia and industry and translate scientific discoveries into real-world applications. 

More information online