‘Labour should go further than the Tories making universities more entrepreneurial’

In an era of rapid technological advancement and global competition, a nation’s ability to innovate is the key to securing its economic future. Britain’s higher education sector is at the heart of this revolution. 

Universities are not just hubs of learning and research. They are centres of innovation. Researchers are involved in developing cutting-edge technologies that can transform whole industries. However, the gap between academia and industry has often hindered the successful translation of these innovations into tangible economic benefits.

The publication of the government’s spin-out review this week is a useful reminder of the work going on in clusters around the country. But it is a missed opportunity as it does not tackle the important questions of how to grow the number of spin-outs.

As Sir Keir Starmer sets out his vision for a more prosperous Britain ahead of the next general election, Labour should aim to fill the gaps left by this review and unleash a thriving culture of entrepreneurship within universities.

Labour must go further to position itself as the party of enterprise

By strategically leveraging the inventions created by their faculty, universities can help catalyse economic growth, boost productivity and position the UK as a global innovation powerhouse.

In his landmark opportunities ‘mission’, set out in a speech in July, Sir Keir recognised the untapped potential of commercialising research, particularly through university spin-outs, holding the United States up as a model for the UK to emulate. 

A report for the party on supporting start-ups, authored by crossbench peer and prominent economist Lord Jim O’Neill, is a good starting point, but there is scope to go further and be bolder.

Labour has spotted the opportunity but needs to embrace more pro-enterprise policies to allow start-ups to truly flourish. It must be much more ambitious if it wants to position itself as the party of enterprise.

Three steps Labour can take to support innovation in universities

Strengthening innovation policies within universities is not ideological; it is pragmatic. By creating a framework that encourages institutions to incubate and commercialise their intellectual property, governments of any stripe can help the economy prosper. This approach not only bolsters university funding but also establishes a direct link between research outcomes and industry, giving rise to a culture of collaboration that accelerates innovation.

To turbo-drive this agenda, Labour’s strategy should firstly recognise the vital role universities play in leading innovation. By doing so, the party would empower researchers to take their innovations to market, supported by institutions which can help streamline the process. Fostering an entrepreneurial academic culture is a proven path to growing the economy.

Secondly, an effective innovation policy should back academic and business ecosystems, like in Cambridge. These hubs provide a platform for knowledge exchange supporting collaboration between academia, industry and investors.

The party should thirdly invest in research and development grants specifically aimed at projects that involve partnership between universities and businesses. By incentivising joint initiatives, Labour would stimulate cross-pollination of ideas and the seamless flow of new ideas and technologies.

Innovation is the cornerstone of economic success

The importance of innovation policy in securing the nation’s global competitiveness should not be understated. As developed and emerging economies alike rapidly advance their technological capabilities, the UK must not only keep pace but strive to lead.

Labour has a golden opportunity to chart a course that aligns with the demands of the future. By nurturing a culture of innovation within universities, the party would send a powerful message to the world that Britain is committed to being at the forefront of technological progress. 

In an era defined by disruptive technologies and intense global competition, innovation is the cornerstone of economic success, enhancing resilience in the face of economic challenges and perhaps unlocking growth which has proven so elusive in recent years.

By focusing on incubating innovation within universities and strategically leveraging their intellectual property, the party can stimulate economic growth, drive productivity and secure the UK’s position as a science and tech global leader.

In a world of economic insecurity, one thing is certain, the future belongs to those who innovate. It’s time for Labour to seize this opportunity and pave the way for a pioneering Britain in the 21st century.