University coffers boosted £300m by outside work

SCOTLAND'S universities attracted a record amount of business and external income last year, surging through the £300 million mark, according to a report published today.

The UK-wide Higher Education Business and Community Interaction survey shows that Scottish higher education institutions brought in £312.7m from external sources during 2006-7, a 21 per cent rise on the previous academic year.

Universities across the UK as a whole reported a 17 per cent increase to £2.6 billion.

The figures – which include revenue from spin-outs, external research contracts, consultancy and training – may go some way to countering recent criticism of Scottish businesses for not capitalising on the work of the nation's universities.

Dr Brian Lang, principal of St Andrews University, and Professor Anton Muscatelli, his counterpart at Heriot-Watt, last month called on industry to build a stronger relationship with universities to boost the economy.

Today's figures reveal that Scottish universities brought in more than £83m in contracted research last year, a rise of 29 per cent on the previous year. Scotland's universities completed research contracts for 2,688 companies, including 256 with small and medium-sized enterprises (SMEs).

Collaborative research in Scotland, which includes funding from businesses, community groups and some public sector funding, amounted to £98.7m in 2006-7, a rise of 26 per cent on the previous year. Scotland's collaborative research represented about 15 per cent of the UK total.

The statistics were compiled by the Higher Education Funding Council for England and the Department for Innovation, Universities and Skills, with Scottish universities contributing their own figures.

A spokesman for Universities Scotland, which represents higher education bodies, said: "A number of people have suggested universities need to show their economic impact if they are to make a strong case for more funding. This study shows that Scotland is out-performing everybody and is transforming the relationship between business and universities.

"This is precisely the sort of evidence that shows why investment has got to be a priority.

"This report doesn't surprise us and shouldn't surprise anyone with an interest in Scotland's prosperity."

The survey also revealed the level of spin-out activity at Scotland's universities. In 2006-7, 23 new companies were created to capitalise on university research, up from 20 in 2005-6.

In total, Scotland has 143 spin-out companies with some degree of university ownership. They employ more than 2,000 people and had an estimated combined turnover of £117.6m in the latest full year and attracted £19.8m of external investment.

Software licences granted by Scotland's universities to SMEs generated £898,000 – 48 per cent of the UK total.