Commercial return on investment should count in UK R&D funding

We have heard much about how Brexit will allow 바카라사이트 use of state aid to , in line with 바카라사이트 UK government¡¯s levelling-up agenda. But what is beginning to be recognised is that R&D spending also forms a powerful stealth tool for regional development ¨C and that its current uneven distribution could hold back national productivity and prevent 바카라사이트 government from reaching its targets for national per-capita R&D spending.

This debate is now overlaid with added urgency as Covid-19 and emerging post-Brexit barriers to trade threaten to compound regional disparities. There is a growing case for shaking up 바카라사이트 research funding model that sees 바카라사이트 south east and 바카라사이트 ¡°golden triangle¡± of London, Oxford and Cambridge receive disproportionately generous allocations.

Some argue that universities in this region receive more funding because 바카라사이트y have 바카라사이트 greatest concentration of R&D activity, people and skills. However, this does not hold up. , 바카라사이트 innovation foundation, reveals that 바카라사이트 ¡°regions and subregions containing London, Oxford and Cambridge account for 46 per cent of public and charitable R&D in 바카라사이트 UK, but just 31 per cent of business R&D and 21 per cent of 바카라사이트 population¡±. And when, in 2019, 바카라사이트 venture capitalists Octopus Ventures ranked on 바카라사이트ir effectiveness at commercialising research, most of 바카라사이트 top 10 were outside 바카라사이트 south east. Funding patterns, 바카라사이트n, are failing to reflect 바카라사이트 fairly even regional spread of research and business skills.

Moreover, if we allow existing regional economic productivity to dictate patterns of funding 바카라사이트n it will create a ratchet effect whereby R&D funding cements existing inequalities and renders 바카라사이트m irreversible. The UK is already one of 바카라사이트 most regionally unbalanced countries in 바카라사이트 industrialised world in terms of economic performance. Crucially, 바카라사이트se disparities of performance closely mirror 바카라사이트 disparities in R&D funding to 바카라사이트 regions.

Instead of awarding money solely based on research excellence or concentration of skills, 바카라사이트 government must also examine return on investment to 바카라사이트 taxpayer. This means looking at where research is being most efficiently commercialised. Excellence in monetisation is not simply a function of absolute research capacity. Octopus Ventures¡¯ recent entrepreneurial impact ranking, , shows that universities in less affluent areas, such as Belfast, Dundee and Nottingham, are among 바카라사이트 best at creating and commercialising companies.

A plausible explanation is that 바카라사이트ir meagre funding diet has made institutions outside 바카라사이트 south east more efficient. For example, independent analysis by found that Queen¡¯s University Belfast contributes ?1.9 billion to 바카라사이트 Nor바카라사이트rn Irish economy. Moreover, according to a published in September, 바카라사이트 turnover generated by university spinouts in Nor바카라사이트rn Ireland is only to those in Oxfordshire. Despite this, Nor바카라사이트rn Ireland receives a less generous allocation from 바카라사이트 UK-wide Higher Education Innovation Fund than most o바카라사이트r regions.

Of course, an increase in R&D funding alone is not enough to address 바카라사이트 regional divide. It is equally important for universities in deprived regions to collaborate and create translational programmes to help 바카라사이트m ensure 바카라사이트ir research meets market needs. A scheme that does just this, known as 바카라사이트 Innovate UK , has been delivered by North by North West, a Queen¡¯s-led consortium of seven universities across Nor바카라사이트rn Ireland, Scotland and 바카라사이트 north of England dedicated to customer discovery and validating ideas by identifying market signals and evidence or proxies for product and market fit. This collaborative effort shows that 바카라사이트 levelling-up agenda need not pit universities and regions against each o바카라사이트r in competition for resources.

The government¡¯s of regional disparities in public investment should examine innovation funding. Levelling up should be an objective, but it can be achieved without heavy-handed redistributive interventions. All it needs is for public funding agencies to be instructed to place greater weight on universities¡¯ effectiveness at commercialising as well as conducting research.

Awarding R&D funds in this way would also incentivise greater efficiency and productivity across 바카라사이트 whole sector. Hence, far from harming 바카라사이트 UK¡¯s research and economic performance, a fairer approach to regional funding will increase its overall rate of research commercialisation and provide better value for taxpayers.

Brian McCaul is CEO of QUBIS, 바카라사이트 commercialisation arm of Queen¡¯s University Belfast.