Research England has released an updated strategic direction for the Higher Education Innovation Funding (HEIF) programme, emphasizing a renewed focus on driving economic growth. HEIF, which provides £280 million annually, supports universities in translating research and expertise into practical solutions that strengthen communities and local economies. The programme’s flexibility enables institutions to align their core strengths with local and emerging opportunities, making it a key structural fund for long-term innovation and institutional capacity building.
The refreshed strategy outlines new priorities for the 2026–2031 funding period, with implementation in two phases. The first phase will introduce an outcomes-focused accountability framework from 2026 to 2027, while the second will revise the funding formula to incentivize measurable contributions to economic growth from 2027 to 2028 onwards. Professor Dame Jessica Corner, Executive Chair of Research England, highlighted that universities are at the heart of the UK’s innovation ecosystem, with HEIF currently generating £14.80 in return for every £1 invested.
The updated policies direct universities to prioritize activities that generate economic growth, aligning with government missions such as the Post-16 Education and Skills White Paper, the Modern Industrial Strategy, and the Plan for Change. HEIF-supported projects will focus on leveraging institutional strengths to drive national, regional, and local growth through diverse knowledge exchange mechanisms involving students, staff, and communities.
A new framework developed by the University Commercialisation and Innovation Policy Evidence Unit categorizes these efforts into four dimensions: strengthening growth drivers, commercializing knowledge, supporting business innovation, and enabling workforce productivity. Alongside this, a revised accountability template will require institutions to submit detailed five-year plans showing how HEIF funds contribute to economic outcomes and equality, diversity, and inclusion (EDI) goals.
Independent evaluations of HEIF have demonstrated its strong economic impact, showing a £14.80 return per £1 invested and confirming that 38% of knowledge exchange activities would not have occurred without HEIF support. The funding has been particularly effective in fostering student entrepreneurship, with £15.60 returned per £1 invested in start-up initiatives. The refreshed approach aims to build on this success, enhancing regional innovation and supporting universities in driving sustainable, inclusive economic growth across England.
