The Higher Education Innovation Fund (HEIF) is England’s primary public funding stream for university innovation, enabling institutions to translate world-class research and student ideas into societal and economic benefits.

A 2025 Research England commissioned review found that without HEIF, 38% of knowledge exchange (KE) activities would not occur and that every £1 invested in HEIF generates £14.80 in returns for the UK. Large research-intensive universities deliver an even higher return on investment from their HEIF allocations, as much as 20:1 once spinout performance is accounted for. 

Unlike most funding streams, HEIF is uniquely flexible, allowing universities to use their insight to tailor investments to innovation strengths, regional ecosystems and emerging opportunities. It therefore supports a wide range of activities including generating new collaborations with business, driving licencing opportunities, empowering student entrepreneurs, and supporting the development of high-growth spinouts.

HEIF is a vital driver of economic growth and regional development and by design, delivers on government objectives including leveraging private investment, enhancing regional productivity, enhancing employability and skills, and improving public policy.

However, current caps on HEIF funding are limiting its potential. An uplift in the total HEIF pot could unlock billions in economic impact.

When Russell Group institutions were asked how they would use a £2m uplift in their HEIF allocation, answers included:

1. Increasing tech transfer office (TTO) capacity: This uplift would allow the university to increase their commercialisation activity including market analysis, business planning and customer engagement. They estimate that each 500k would create five more spinouts ready to attract private investment.
2. Enhancing proof-of-concept (POC) funding: This uplift would fund approximately 20 additional POC projects at the university, helping them meet internal demand for funding to support this vital stage. This university received 56 internal proposals to its recent POC call and could only fund 10 of them.
3. Scaling up business engagement: This uplift would allow the university to strengthen business partnerships and align support with the industrial strategy and local priorities. It would fund more business events, bespoke SME engagement and help to leverage larger investments. It would also allow the university to make it easier for businesses to use their specialist facilities.