The National Centre for Universities and Business (NCUB) welcomes the ambition set out by Prime Minister Andy Burnham at the Innovation Nation Summit to make the UK a world leader in innovation, and the recognition of universities as one of the country’s greatest strengths in achieving this.

Burnham’s speech follows an open letter sent to the Prime Minister, in which senior business and university leaders warn that devolution must strengthen the contribution of places to the UK’s innovation economy without fragmenting the national capabilities needed to compete globally. The letter calls for a new partnership combining stronger local leadership with sustained national investment and the ability to connect capabilities across the country behind opportunities where the UK can win.

The speech outlined plans to devolve the £500 million Local Innovation Partnerships Fund to established mayors from 2028, commit £1 billion with UKRI over four years to support high-potential innovation clusters, and strengthen collaboration between complementary clusters across the UK.

Dr Joe Marshall, Chief Executive of NCUB, said: “It is encouraging to see universities recognised as one of the UK’s greatest strengths in building an innovation-led, research-driven economy. As senior business and university leaders have highlighted in our open letter to the Prime Minister, realising this ambition will depend on universities and businesses working together to turn research excellence into innovation, investment and growth.

“Devolution offers a real opportunity to bring together the distinctive strengths of different places, align research and innovation with skills, infrastructure and finance, and create the conditions for greater investment and growth. But stronger local leadership must go hand in hand with national coordination. We need places to complement one another, connecting expertise across boundaries and building the scale needed to compete internationally.

“Regions need the freedom and long-term funding to develop their own strengths, while national frameworks must retain the capacity to make strategic investments, connect complementary capabilities and focus resources where they can have the greatest impact. Getting this balance right is essential to turning the UK’s research and innovation strengths into commercial success, investment and good jobs across the country.

“The proposed investment through UKRI and plans for devolved innovation funding are important developments. But the detail will be critical. How funding is allocated, how priorities are set, and how universities and businesses are involved in shaping and delivering these plans will determine whether they strengthen the connections needed to realise the UK’s full innovation potential.”

The Prime Minister is right to put innovation at the heart of the UK’s growth ambitions and to lead that charge from the front. The prize now is to build the ecosystems that turn brilliant ideas into commercial success at scale by connecting innovative firms with anchor customers, supply chains and investors, and backing regional strengths to become nationally and internationally competitive.

Business is ready to work with government on the detail so that greater local empowerment is matched by strong connections between regions, national capabilities and global markets. The Budget is the next big test: innovation is a package deal, and firms need the wider conditions to invest, hire, scale and stay here if we are to turn our innovation strengths into growth across the country.