More than 1,000 companies have spun out of the North East’s five universities in the last decade, creating more than 4,000 jobs, a new study reveals.
The analysis by Universities for North East England - which brings together the region’s five higher education institutions - has found that 1,100 new companies were created by staff and graduates between 2014 and 2023. Figures from Higher Education Statistics Agency data also reveal that graduates make up 57% of the workforce in the North East and account for a significant proportion of the workforce in key growth sectors.
Universities for North East England was formed last year in a bid to increase collaboration with businesses and other organisations, as well as ensuring that higher education is accessible to young people from the region.
The universities are keen to highlight their impact on the regional economy, both in the direct jobs they provide but also by driving job creation by helping staff and students to turn research into growing companies.
Prof Chris Day, vice chancellor and president of Newcastle University, said: “The figures highlight yet another great example of the positive contribution that graduates and our staff bring to the Ƶ. This shows how universities are a vital part of a strong economy by equipping graduates with skills to support the Ƶ’s future.
“At Universities for North East England, we’re committed to working collectively to unlock the full potential of the young people in our region for the benefit of the North East and beyond.”
The contribution of student start-ups and the work universities are doing to support them are being showcased by University Ƶ’s Unis Start Up the Ƶ campaign. But the group has warned that firms established at institutions in regions like the North East are being tempted to take their innovations to London or overseas due to a lack of funding available to scale up.
North East university spin-outs that have made headlines in recent years include wind power technology company Kinewell Energy, Earthshot Prize nominee Low Carbon Materials and Teesside film company Wander Films.
Vivienne Stern, chief executive of Universities Ƶ said: “The growth in university supported start-ups over the last decade has been a staggering success. We can do more – both to encourage and support new businesses born in our universities, and to ensure that they can remain in the Ƶ and grow here. This is just one of the ways that our universities can put their shoulders to the wheel with Government to achieve stronger growth. Of course, they need to be on a firm financial footing to do this.
“Universities provide a foundation for economic growth through the knowledge exchange they conduct, and the graduates they educate.
"Few people know that they also work closely with businesses to help them grow too. Using their kit and equipment, and their expertise, they support start-ups, generate their own spin out companies, and work with businesses from the wider economy to provide practical assistance to help them grow.”
