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UKRI needs targets on start-ups and private R&D spending, say MPs

Setting UK鈥檚 main research funder clearly defined objectives can bolster the case for R&I investment, finds Public Accounts Committee

Published on
July 23, 2025
Last updated
July 23, 2025
Westminster, Houses of Parliament
Source: iStock

The UK鈥檚 main research funder should set itself targets for attracting industry funding for scientific research and encouraging science-based spin-outs, a parliamentary committee has recommended.

In a detailed report into the effectiveness of UK Research and Innovation (UKRI)聽聽on 23 July, the influential House of Commons Public Accounts Committee (PAC) argues that the 拢9 billion-a-year funder does not have a set of clearly defined objectives against which to judge its performance and hold it accountable.

To bolster the case for public investment in research and innovation聽(R&I), the committee says more transparent performance measures should be published, noting that UKRI鈥檚 self-assessment currently involves an internal scorecard covering 100 metrics, which is shared only with the Department for Science, Innovation and Technology (DSIT).

This scorecard covers the impact of UKRI鈥檚 research, stakeholders鈥 experience of UKRI, the health of the UK鈥檚 research system and the extent to which the organisation is learning and improving.

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UKRI should 鈥渟et measurable outcomes鈥, the committee鈥檚 report urges, while the funder should also set itself six to 10 鈥渢argets in priority areas, such as private investment in R&I, to help appraise its performance effectively鈥.

Those recommendations echo plans from DSIT shared with the committee, which would see the incoming leadership of UKRI set three key performance indicators (KPIs) against which they would be assessed: overall public and private spend on research and development (R&D); UK global rankings on the creation of ideas and; UK global rankings in scale-up growth and application of research.

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鈥淥ur inquiry found that the environment in which UKRI operates poses significant challenges in translating important research into successful going concerns,鈥 said Geoffrey Clifton-Brown MP, who chairs the PAC.

鈥淭here is much more to do if UKRI is to become the focused actor delivering on government鈥檚 priorities 鈥 government must bring all the support it can muster to bear on the skills gaps identified in our report allowing the UK to more reliably produce start-ups,鈥 he continued, stating that it should seek to embed 鈥渂etter accountability and transparency in its organisations鈥.

The lack of 鈥渟pecific, measurable, achievable, relevant and time-bound objectives and KPIs鈥 meant it was 鈥渄ifficult to know whether it is making progress against its overall objectives,鈥 explains the report.

Speaking to 糖心Vlog,聽Clifton-Brown added: 鈥淲e have to focus the minds of inventors 鈥 all of us need goals and targets to help us achieve. UKRI is an extremely important organisation for our country and the same principle should apply.鈥

鈥淭he UK is very good at inventing things 鈥 now we need to be good at scaling up these companies,鈥 he added.

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Asked whether UKRI had the resources to increase start-up and scale-up activity at university spin-outs, Clifton-Brown said: 鈥淭hat is why UKRI needs to encourage private investment. It is really important that it provides the right advice and training on this.鈥

UKRI has stated that private sector investment in UK research and innovation was 拢46.7 billion in 2024. However, the report says the 鈥渓ack of time-series data and targets means it cannot be clear on whether it is making sufficient progress in increasing UK private investment鈥.

In addition, there was 鈥渋nsufficient clarity about, and visibility of, where UKRI is investing its money鈥, the report continues, making it difficult to know, in some cases, where research was focused.

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鈥淎round 15 per cent of UKRI鈥檚 grants do not have a full description on its system, and in other cases the descriptions are poor quality and consequently spending on these grants cannot be accurately classified automatically,鈥 it explains.

鈥淲ith all parts of government, and industry, subject to large-scale assaults on their cyber security defences, it is crucial that UKRI鈥檚 updated systems are resilient to cyber threats,鈥 it adds.

The report also urges DSIT to set the priorities that steer how UKRI allocates its budget, noting that there were 鈥105 government policy papers across 13 ministerial departments [between 2021 and 2024] where UKRI was expected to contribute, for example by funding research or building partnerships鈥.

鈥淒SIT and UKRI do not rank such activities or even compile them into a single list,鈥 it adds.

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jack.grove@timeshighereducation.com

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Reader's comments (1)

All the experience in the sector is that targets like these will encourage Universities to develop a load of extremely poor underfunded spin out with few realistic prospects of succeeding - just to meet the numbers. Further, these type of companies frequently throw the researchers attracted or pushed to work in them, to the wolves, seriously impacting their careers and frequently the companies waste investor (and grant) money as they do not have the commercial acumen to make success. This seriously discourages private investment in these types of companies and private R&D. Better models for creating spin outs are required including the Universities running the spin outs from inside their organisations for a time. The universities will then make much better decisions as to what is a true commercial prospect as they have skin in the game. This type of public-private partnership also would be much more attractive to investors as the spin out when it happens is substantially derisked.

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