Benchmarking Foreign Direct Investment into University R&D

Background

FDI into universities’ R&D activities can contributes to regional economic growth, job creation, and cluster development, especially when aligned with universities’ missions and regional innovation strategies. A team of researchers at City-REDI, University of Birmingham, is leading a study on Benchmarking FDI into universities’ R&D activity. This is about foreign capital directly funding research, commercialisation and infrastructure. We collect existing data, address gaps and identify medium-term trends and policy recommendations. 

We need a better understanding of characteristics and geography of FDI into universities’ R&D activities, which could be strategically aligned with the region’s industrial profiles and strengths. In addition to understanding existing FDI and R&D activities, more forward-looking approaches are needed to identify where opportunities for growth and future needs might lie.

Our scope of FDI into University R&D include:

• direct investment into the research base: Overseas firms fund university-led research projects/particular research activities, or make business investment in university equipment/major research facilities.
• commercialisation: Foreign investors take stakes in university spinouts or IP portfolios including equity investment and patient capital, such as the purchase of intangible assets, shares in spinout portfolios or licenses.
• physical space: e.g. companies taking space in science, innovation and enterprise parks or in proximity to industry focussed/ research labs.