A 2024 review by London Economics and Universities UK found that every £1 invested in higher education research generates nearly £5 in additional annual economic output across the UK.
This research results in over £40bn of increased private sector productivity each year. Universities’ contributions to economic growth and social vitality is particularly true in the context of the UK’s devolved nations, where regional autonomy and local governance provide a strong foundation for universities to enhance their civic roles. Northern Ireland, with its distinct political and economic landscape, offers a compelling case study of how universities can act as catalysts for regional development.
Northern Ireland is fortunate to have two outstanding universities: Queen’s University Belfast, a prestigious member of the Russell Group, and Ulster University, recently recognized as the Times Higher Education University of the Year 2024.
A prime example of universities embedding themselves within their regional economic ecosystem is the Belfast Region City Deal (BRCD) – a £1bn investment programme aimed at enhancing innovation, skills, and infrastructure across six council areas. BRCD alone is a £1bn investment programme aimed at enhancing innovation, skills, and infrastructure across six council areas. Funded by the UK Government, NI Executive, local councils, and universities, this initiative places Queen’s University and Ulster University at the heart of greater Belfast’s long-term economic strategy.
One of the flagship projects within the BRCD is the Advanced Manufacturing Innovation Centre – a £100m high-tech manufacturing hub. Led by Queen’s University Belfast, in collaboration with Ulster University and Newtownabbey Borough Council, AMIC is set to create up to 1,500 jobs, contribute £1bn to the economy, and train 300 apprentices by 2050. Manufacturers across NI will be able to use this ‘Factory of the Future’ to try out new ideas with the very latest technology.
The UK government’s commitment to regional devolution and the development of a new Industrial Strategy underscores the importance of place-based growth. This strategy emphasises the need for universities to align their missions with regional priorities, thereby fostering economic growth and social cohesion. As highlighted in a joint report by Lloyds Banking Group and PwC UK, universities are at a pivotal moment where they can redefine their civic roles to better serve their communities and regions.
In Northern Ireland, universities have embraced this opportunity by forming strategic partnerships with local government, businesses, and further education colleges. These collaborations aim to address regional skills gaps, enhance innovation, and attract inward investment.
The benefits of collaboration are multifaceted:
•The Shared Island Initiative aims to foster collaboration and mutual growth between Northern Ireland and the Republic of Ireland
•International reach and opportunities are emphasised through collaboration with global partners, opening doors to new markets, providing access to diverse expertise, and creating a more dynamic and innovative environment
•Collaboration with Great Britain is crucial, leading to joint research projects, shared knowledge, and increased funding opportunities, ultimately benefiting both regions.
Northern Ireland continues to address the skills shortage that must be resolved in order to attract significant investment and encourage major industry players into the region. This comes at a time when Ulster University’s Economic Policy Centre recently published a report showing that Northern Ireland needs more than 5,000 additional workers a year in order to grow the economy. The Northern Ireland Skills Barometer 2023-2033 highlights that the fastest growing occupations in terms of demand are “high value” jobs such as roles in data analytics, cyber-security and IT – all areas that our universities are investing heavily in.
The skills agenda also presents a crucial opportunity for greater collaboration between higher education and further education providers. This has been effectively demonstrated through partnerships between Ulster University, Queen’s University Belfast, and further education colleges through the Assured Skills Academies, a programme designed to equip individuals with the expertise required by employers.
Funded by the Department for the Economy, these academies provide fully funded training in high-demand sectors such as software development, cyber-security, and engineering. One such example of collaboration is the Data Analytics Assured Skills Academy, delivered by Belfast Met and Ulster University in collaboration with PwC, which offers specialised training in AI, machine learning, and data analytics to prepare participants for careers in tech and finance.
PwC was encouraged to form this collaboration based on the firm belief that change and transformation skills are increasingly needed to support our clients through complex change. We want to see this type of demand led skills development scaled up to support our future workforce needs.
Beyond teaching and research, universities also drive regional prosperity by spinning out new companies and commercialising leading research. Ulster University currently has 19 active spin-out companies, which collectively generate over £50m in annual turnover and employ more than 700 staff. At Queen’s University, approximately 100 spin-out companies have been created through QUBIS Ltd., its commercial arm. These companies have collectively delivered £396m in revenue and created almost 4,000 jobs.
Moreover, universities in Northern Ireland are playing a crucial role in addressing societal challenges such as chronic health issues, health inequalities and social mobility. A prime example is iREACH Health, a £62m integrated clinical research centre under the BRCD, led by Queen’s University Belfast in collaboration with the Belfast Health and Social Care Trust and HSC Research & Development Division.
By bringing together experts from academia, healthcare, and industry, iREACH will drive the development and testing of medicines, technologies, and therapies, with the ultimate goal of improving clinical care outcomes.
The long-term financial sustainability of universities is closely linked to their ability to drive regional growth. Forming partnerships with regional stakeholders not only enhances our universities’ relevance and reputation but also enables universities to diversify their income streams, reducing reliance on traditional funding models while reinforcing their civic mission. A strategic partnership between Ulster University, Randox Laboratories, Invest Northern Ireland, and Heartsine Technologies led to the establishment of the Advanced Biomedical Engineering Laboratory at Ulster University.
It is crucial to expand the sector to continue to attract and retain young people in Northern Ireland. This can be achieved by creating a vibrant and supportive environment that offers ample career opportunities, modern facilities, and a high quality of life. Efforts should also be made to counter the ‘brain drain’ by attracting young people from Great Britain and internationally, showcasing Northern Ireland as an attractive destination for education and career growth.
Unfortunately, the current funding model for higher education in Northern Ireland is unsustainable, with tuition fees capped lower than other UK regions. This creates a funding gap that limits investment in teaching, research, and student support. Despite this, our universities excel, but the imbalance threatens their sustainability, reduces opportunities for local students, and undermines Northern Ireland’s ability to attract and retain talent. A fair solution is needed to enable our universities to thrive as drivers of economic and social development.
Universities in the devolved nations, and Northern Ireland in particular, have a unique opportunity to drive regional growth and prosperity. By aligning their missions with regional priorities, forming deep, long-term partnerships between regional education institutions, businesses and public bodies are central to universities’ ability to create increased value for both themselves and their regions.
As the UK government continues to emphasise regional devolution and place-based growth, universities must seize this moment to redefine their roles as catalysts for regional development. We believe that we have the capability in Northern Ireland to capitalise in this opportunity, and that creating these clusters of innovation should be at the heart of a long term economic plan for Northern Ireland.