University of Cambridge spinouts drive £30bn economic impact
The University of Cambridge and its spinouts contribute almost £30bn to the economy annually, according to new research.
The figures, calculated by the consultancy group London Economics, show that every £1 spent by the University of Cambridge returns £11.70 to the economy.
The analysis found that more than £23bn of the university’s economic output was a result of the commercialisation of its research, largely through spinout companies.
The University of Cambridge is one of the top producers of high-growth tech spinouts. Recent examples of promising firms originating from the university include semiconductor developer Cambridge GaN Devices, graphene firm Paragraf and biotech company Constructive Bio.
The study comes as the UK government looks to ramp up its support of university spinouts to drive investment and economic growth.
This month, the Treasury announced a review to explore ways to better utilise the work of university spinouts and encourage more activity.
Educational institutions are set to play a pivotal role in Chancellor Jeremy Hunt’s tech industry and general economic growth plans.
During the recent Spring Statement, Hunt announced the Investment Zone project, 12 areas that will receive financial support and business tax incentives. These zones will largely be centred around universities and other research facilities to prioritise development in cutting-edge new tech startups.
While Cambridge, along with the University of Oxford, is already a major contributor to the UK tech economy, the project aims to bring other regions up to a similar standard as the South East hubs.