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HE Business and Community Interaction Survey 2009/10

The results of the 2009/10 HE Business and Community Interaction Survey are published today by HESA. The downloadable publication shows that 273 new spin-off companies were set up in 2009/10 to exploit intellectual property originating in UK higher education institutions (HEIs). A further 2422 new start-up companies were set up by staff and recent graduates of HEIs.

Spin-off and start-up firms

There were a total of 6690 active HE spin-off and start-up firms operating in 2009/10 employing approximately 28,000 people (FTE) with a turnover of over £2 billion and external investment of over £1 billion.

The table below shows the UK-wide results from the 2009/10 HE-BCI survey for spin-off and start-up companies, including the restated results for 2008/09:

  2008/09 2009/10
Number of new spin-off companies 2345 2695
  Spin-offs with some HEI ownership 180 203
  Formal spin-offs, not HEI owned 35 70
  Staff start-ups 51 65
  Graduate start-ups 2079 2357
     
Total number of active firms 5849 6690
  Spin-offs with some HEI ownership 1068 1095
  Formal spin-offs, not HEI owned 243 245
  Staff start-ups 251 286
  Graduate start-ups 4287 5064
     
Estimated current employment of all active firms (FTE) 25090 27658
  Spin-offs with some HEI ownership 11152 9637
  Formal spin-offs, not HEI owned 3028 7305
  Staff start-ups 2163 1012
  Graduate start-ups 8747 9704
     
Estimated current turnover of all active firms (£ thousands) 1,847,982 2,088,285
  Spin-offs with some HEI ownership 697,410 742,303
  Formal spin-offs, not HEI owned 813,600 1,019,570
  Staff start-ups 167,714 101,237
  Graduate start-ups 169,258 225,175
     
Estimated external investment received (£ thousands) 725,719 1,165,301
  Spin-offs with some HEI ownership 484,958 588,394
  Formal spin-offs, not HEI owned 214,744 551,049
  Staff start-ups 13,820 17,421
  Graduate start-ups 1,2197 8,437
Source: HE-BCI Survey 2009/10. See Annex below for England, Wales, Scotland and Northern Ireland figures

Other business and community interactions

Other forms of business interaction revealed by the HE-BCI survey include contracted research, consultancy and the use of specialised facilities and equipment. HEIs also earned income providing courses for business and from the licensing of intellectual property.

The table below shows the income for UK HEIs from these sources in 2009/10 and 2008/09 (restated):

  2008/09 2009/10
Income from collaborative research involving public funding (£ thousands) 708,982 748,844
     
Total value of contract research (£ thousands) 932,513 983,457
     
Business and community services (£ thousands)    
Consultancy contracts 333,896 363,032
Facilities and equipment related services 111,706 115,055
Courses for business and the community 548,400 579,840
Income from regeneration and development programmes* 174,050 213,403
     
Intellectual Property (£ thousands)    
Income from SMEs 12,975 13,085
Income from other (non-SME) commercial businesses 36,505 36,910
Income from other non-commercial organisations 8,347 7,869
Source: HE-BCI Survey 2009/10. See Annex below for England, Wales, Scotland and Northern Ireland figures.

HE-BCI publication

The new HESA publication HE Business and Community Interaction Survey 2009/10 contains the full results of the 2009/10 survey for every HE institution. The publication includes the qualitative responses from Part A of the survey, as well as the quantitative data from Part B (from which the above tables are drawn). HE Business and Community Interaction Survey 2009/10 is available to purchase and instantly download from our website.

A full schedule of all HESA releases for 2011 can be found here.

Notes for Editors

  1. Press enquiries should be directed to:
  2. HESA data is collected from all publicly funded Higher Education Institutions (HEIs) in the UK, plus the University of Buckingham, which is a non-publicly-funded institution. The HE-BCI Survey is mandatory for HEIs in England, Northern Ireland and Wales, excluding The University of Wales (central functions). The HE-BCI Survey is not mandatory for HEIs in Scotland, although the Scottish Funding Council (SFC) strongly advise that HEIs in Scotland return it. In 2009/10, four institutions in Scotland did not submit HE-BCI data. The 2009/10 HE-BCI data covers 161 HEIs (131 in England, 11 in Wales, 15 in Scotland and 4 in Northern Ireland).
  3. The Higher Education Business and Community Interaction Survey (HE-BCI) is the main vehicle for measuring the volume and direction of interactions between UK Higher Education Institutions (HEIs) and business and the wider community. The survey collects information on the infrastructure, capacity and strategy of HEIs, and also numeric and financial data regarding third stream activity (that is, activities concerned with the generation, use, application and exploitation of knowledge and other university capabilities outside academic environments, and distinct from core activities of teaching and research).
  4. Some variations in the data between years may be due to availability of information from independent spin-off and start-up companies, and changes in HEIs’ reporting practices.
  5. The survey has collected data for each academic year from 1999/2000, with HESA undertaking the survey since 2008/09. From 1999/2000 to 2007/08 the survey was undertaken, and its results published, by HEFCE: http://www.hefce.ac.uk/kess/hebci/
  6. The data tables above relate to all UK HE institutions. Figures for the individual nations of the UK are available below [England, Wales, Scotland, Northern Ireland].
  7. HESA cannot accept responsibility for any inferences or conclusions derived from the data by third parties.
  8. Definitions of the terms used above follow:

    Definitions

    Coverage

    HE-BCI data relates to the institutions' financial year, i.e. 1 August 2009 to 31 July 2010. Data for 2008/09 are restated figures supplied in the 2009/10 survey and may differ from previously published 2008/09 data.

    All financial values in the HE-BCI Survey are shown in units of £1,000, and where necessary rounded to the nearest £1,000.

    Spin-off activity

    Spin-offs are companies set-up to exploit intellectual property (IP) that has originated from within the HEI. All investment from the HEI and external partners are included but any investment from HEFCE/BIS third stream funds (such as the Higher Education Innovation Fund in England or the Third Mission Fund in Wales) is excluded.

    Spin-offs with some HEI ownership are companies set-up to exploit IP that has originated from within the HEI, where the HEI continues to have some ownership.

    Formal spin-offs, not HEI-owned are companies set-up based on IP that has originated from within the HEI but which the HEI has released ownership (usually through the sale of shares and/or IP).

    Staff start-ups are companies set-up by active (or recent) HEI staff but not based on IP from the institution.

    Graduate start-ups include all new business started by recent graduates (within two years) regardless of where any IP resides, but only where there has been formal business/enterprise support from the HEI.

    Spin-off activity is further analysed by the number of new spin off companies for the reporting period; the number of active firms (the 'number' and 'number still active which have survived at least 3 years' plus those companies which have been active for between one and three years); estimated current employment of all active firms (FTE); estimated current turnover of all active firms (£000s) and estimated external investment received (£000s) (from external partners but excluding investment from HEFCE/BIS third stream funds).

    Note: estimates for estimated current employment of all active firms (FTE), estimated current turnover of all active firms (£000s), and estimated external investment received (£000s) (from external partners but excluding investment from HEFCE/BIS third stream funds) are provided by HEIs where possible.

    Collaborative research involving public funding

    This includes research projects' public funding from at least one public body, and a material contribution from at least one external non-academic collaborator. The collaborative contribution may be cash or 'in-kind' (if this is specified in a collaborative agreement and auditable). In-kind contributions include contributions to the project from the non-academic collaborators (for example staff time, use of equipment and other resources, materials, provision of data etc.) as described in the project collaboration agreement.

    Contract research

    This includes contract numbers and income identifiable by the institution as meeting the specific research needs of external partners, excluding any already returned in collaborative research involving public funding and excluding basic research council grants.

    Business and community services

    Consultancy contracts

    This includes contract numbers and income associated with consultancy, which are crucially dependent on a high degree of intellectual input from the institution to the client (commercial or non-commercial) without the creation of new knowledge. Consultancy may be carried out either by academic staff or by members of staff who are not on academic contracts, such as senior university managers or administrative/support staff.

    Facilities and equipment related services

    This includes the use and income associated with the use the HEI's physical academic resources by external parties, and captures provision which can be uniquely provided by an HEI. Examples may include aerospace company use of a HEI's wind tunnel, or media company use of a digital media suite. It does not include simple trading activities such as commercial hire of conference facilities or academic conferences.

    Courses for business and the community

    This includes revenue generated by Continuing Professional Development (CPD) courses, defined as a range of short and long training programmes for learners already in work who are undertaking the course for purposes of professional development, upskilling or workforce development.

    Regeneration and development programmes

    Regeneration funding is an important way for HEIs to invest intellectual assets in economic, physical and socially beneficial projects. The majority of regeneration funding comes from European sources, specifically the European Regional Development Fund, the European Social Fund, UK Government regeneration funds and development agencies in the UK Regional Development Agencies

    Intellectual property (IP)

    IP is a vital indicator for the value added by the HEI when interacting with a range of external partners. It is commonly in the form of licenses granted to private companies, allowing them to exploit an invention protected by a patent. IP includes patents, copyright, design registrations and trade marks.

    IP income includes income from upfront or milestone fees, royalties and patents cost reimbursement.

    Small and medium enterprises (SMEs) includes enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million. SMEs include micro, small and medium enterprises and sole traders.

    Other (non-SME) commercial businesses includes other commercial businesses which do not match the above definition of SMEs.

    Non-commercial organisations includes organisations from which its shareholders or trustees do not benefit financially.

Ends

Annex - equivalent tables for England, Wales, Scotland and Northern Ireland

England

England HEIs - Spin-off activities
  2008/09 2009/10
Number of new spin-off companies 2050 2337
Spin-offs with some HEI ownership 154 168
Formal spin-offs, not HEI owned 28 64
Staff start-ups 45 55
Graduate start-ups 1823 2050
     
Number of active firms 4772 5491
Spin-offs with some HEI ownership 779 798
Formal spin-offs, not HEI owned 99 140
Staff start-ups 188 219
Graduate start-ups 3706 4334
     
Estimated current employment of all active firms (FTE) 18619 21064
Spin-offs with some HEI ownership 8459 6854
Formal spin-offs, not HEI owned 909 5231
Staff start-ups 1694 655
Graduate start-ups 7557 8324
     
Estimated current turnover of all active firms (£ thousands) 1,321,443 1,579,303
Spin-offs with some HEI ownership 354,020 414,267
Formal spin-offs, not HEI owned 728,792 936,643
Staff start-ups 101,169 42,309
Graduate start-ups 137,462 186,084
     
Estimated external investment received (£ thousands) 619,346 1,043,287
Spin-offs with some HEI ownership 420,198 514,323
Formal spin-offs, not HEI owned 178,605 506,873
Staff start-ups 10,358 16,592
Graduate start-ups 10,185 5,499
 
England HEIs - income from other business and community interactions
  2008/09 2009/10
Income from collaborative research involving public funding (£ thousands) 542,846 564,354
     
Total value of contract research (£ thousands) 782,367 843,037
     
Business and community services (£ thousands)    
Consultancy contracts 280,554 301,835
Facilities and equipment related services 83,230 91,696
Courses for business and the community 454,410 484,275
Income from regeneration and development programmes* 139,644 174,349
     
Intellectual Property (£ thousands)    
Income from SMEs 10,765 11,276
Income from other (non-SME) commercial businesses 27,598 27,165
Income from other non-commercial organisations 8,249 7,474
Source: HE-BCI Survey 2009/10.

Wales

Wales HEIs - Spin-off activities
  2008/09 2009/10
Number of new spin-off companies 214 227
Spin-offs with some HEI ownership 7 10
Formal spin-offs, not HEI owned 5 2
Staff start-ups 4 6
Graduate start-ups 198 209
     
Number of active firms 526 559
Spin-offs with some HEI ownership 57 55
Formal spin-offs, not HEI owned 73 35
Staff start-ups 36 37
Graduate start-ups 360 432
     
Estimated current employment of all active firms (FTE) 1616 1632
Spin-offs with some HEI ownership 235 236
Formal spin-offs, not HEI owned 267 191
Staff start-ups 364 261
Graduate start-ups 750 944
     
Estimated current turnover of all active firms (£ thousands) 75,960 73,016
Spin-offs with some HEI ownership 11,651 13,357
Formal spin-offs, not HEI owned 19,108 15,967
Staff start-ups 28,720 21,428
Graduate start-ups 16,481 22,264
     
Estimated external investment received (£ thousands) 13,727 11,473
Spin-offs with some HEI ownership 8,174 9,905
Formal spin-offs, not HEI owned 1,675 157
Staff start-ups 2,762 79
Graduate start-ups 1,116 1,332
 
Wales HEIs - income from other business and community interactions
  2008/09 2009/10
Income from collaborative research involving public funding (£ thousands) 37,374 48,229
     
Total value of contract research (£ thousands) 30,052 29,356
     
Business and community services (£ thousands)    
Consultancy contracts 10,887 12,281
Facilities and equipment related services 411 632
Courses for business and the community 36,894 34,647
Income from regeneration and development programmes* 12,966 12,526
     
Intellectual Property (£ thousands)    
Income from SMEs 824 83
Income from other (non-SME) commercial businesses 635 1,112
Income from other non-commercial organisations 87 374
Source: HE-BCI Survey 2009/10.

Scotland

The HE-BCI Survey is not mandatory for HEIs in Scotland, although the Scottish Funding Council (SFC) strongly advise that HEIs in Scotland return it.

In 2009/10, four institutions in Scotland did not submit HE-BCI data.

Scotland HEIs - Spin-off activities
  2008/09 2009/10
Number of new spin-off companies 74 129
Spin-offs with some HEI ownership 12 23
Formal spin-offs, not HEI owned 2 4
Staff start-ups 2 4
Graduate start-ups 58 98
     
Number of active firms 491 580
Spin-offs with some HEI ownership 180 191
Formal spin-offs, not HEI owned 63 61
Staff start-ups 27 30
Graduate start-ups 221 298
     
Estimated current employment of all active firms (FTE) 3681 3780
Spin-offs with some HEI ownership 1490 1589
Formal spin-offs, not HEI owned 1646 1659
Staff start-ups 105 96
Graduate start-ups 440 436
     
Estimated current turnover of all active firms (£ thousands) 330,942 307,871
Spin-offs with some HEI ownership 240,802 216,484
Formal spin-offs, not HEI owned 37,000 37,060
Staff start-ups 37,825 37,500
Graduate start-ups 15,315 16,827
     
Estimated external investment received (£ thousands) 24,548 45,825
Spin-offs with some HEI ownership 22,952 37,569
Formal spin-offs, not HEI owned 0 5,900
Staff start-ups 700 750
Graduate start-ups 896 1,606
 
Scotland HEIs - income from other business and community interactions
  2008/09 2009/10
Income from collaborative research involving public funding (£ thousands) 99,080 103,778
     
Total value of contract research (£ thousands) 99,726 92,906
     
Business and community services (£ thousands)    
Consultancy contracts 38,348 43,938
Facilities and equipment related services 20,501 16,331
Courses for business and the community 50,352 53,669
Income from regeneration and development programmes* 5,993 11,346
     
Intellectual Property (£ thousands)    
Income from SMEs 1,157 1,086
Income from other (non-SME) commercial businesses 4,745 5,185
Income from other non-commercial organisations 11 21
Source: HE-BCI Survey 2009/10.

Northern Ireland

Northern Ireland HEIs - Spin-off activities
  2008/09 2009/10
Number of new spin-off companies 7 2
Spin-offs with some HEI ownership 7 2
Formal spin-offs, not HEI owned 0 0
Staff start-ups 0 0
Graduate start-ups 0 0
     
Number of active firms 60 60
Spin-offs with some HEI ownership 52 51
Formal spin-offs, not HEI owned 8 9
Staff start-ups 0 0
Graduate start-ups 0 0
     
Estimated current employment of all active firms (FTE) 1174 1182
Spin-offs with some HEI ownership 968 958
Formal spin-offs, not HEI owned 206 224
Staff start-ups 0 0
Graduate start-ups 0 0
     
Estimated current turnover of all active firms (£ thousands) 119,637 128,095
Spin-offs with some HEI ownership 90,937 98,195
Formal spin-offs, not HEI owned 28,700 29,900
Staff start-ups 0 0
Graduate start-ups 0 0
     
Estimated external investment received (£ thousands) 68,098 64,716
Spin-offs with some HEI ownership 33,634 26,597
Formal spin-offs, not HEI owned 34,464 38,119
Staff start-ups 0 0
Graduate start-ups 0 0
 
Northern Ireland HEIs - income from other business and community interactions
  2008/09 2009/10
Income from collaborative research involving public funding (£ thousands) 29,682 32,483
     
Total value of contract research (£ thousands) 20,368 18,158
     
Business and community services (£ thousands)    
Consultancy contracts 4,107 4,978
Facilities and equipment related services 7,564 6,396
Courses for business and the community 6,744 7,249
Income from regeneration and development programmes* 15,447 15,182
     
Intellectual Property (£ thousands)    
Income from SMEs 229 640
Income from other (non-SME) commercial businesses 3,527 3,448
Income from other non-commercial organisations 0 0
Source: HE-BCI Survey 2009/10.
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