Research financial sustainability

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class="govuk-breadcrumbs__list-item ukri-breadcrumbs__list-item">Research financial sustainability </li> </ol> </nav> </div> </div> </div> </div> <main class="govuk-main-wrapper ukri-main-content" id="main-content"> <div class="govuk-width-container"> <h1 class="govuk-heading-xl main-area__page-title" id="skipnav-target">Research financial sustainability</h1> <div class="govuk-grid-row"> <div class="govuk-grid-column-two-thirds-from-desktop main-content-column"> <div id="post-53937" class="post-53937 page type-page status-publish hentry category-ukri"> <div class="entry-header"> <div class="ukri-post-image-holder"> </div> </div> <div class="entry-content"> <p>The long-term financial sustainability of the research and innovation (R&I) system is critical to maintaining the UK’s global position and ensuring it delivers new ideas that lead to economic growth.</p> <p>A sustainable system meets today’s R&I needs without depleting its ability to meet them in the future. It maintains the capability and flexibility needed to withstand shocks, achieve long-term goals and capture new opportunities.</p> <p>Financial sustainability features strongly in our five-year strategy <a href="/publications/ukri-strategy-2022-to-2027/">transforming tomorrow together</a>. It is part of the resilience principle for change, which prioritises improving the financial sustainability of R&I in organisations across the UK.</p> <div class="videoholder" title="Embedded video"> <p><span class="videowrapper embed-youtube-nocookie aspect_ratio_562"><iframe title="Research Financial Sustainability: why we need a resilient research system" width="500" height="281" src="https://www.youtube-nocookie.com/embed/teTDcJP7Qfw?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></span> </p> </div> <p class="video-caption">Video credit: UKRI<br class="SCXW131156028 BCX0" />Video transcript and on-screen captions are available by watching on YouTube.</p> <p>Working with partners in government and across the sector, our work aims to:</p> <ul> <li>build awareness of the complexity of the UK’s research system</li> <li>understand the different financial pressures it faces</li> <li>make robust, evidence-based policy recommendations to improve financial sustainability</li> </ul> <h2>Our work</h2> <p>The research sustainability team works in collaboration with teams across:</p> <ul> <li>UK Research and Innovation (UKRI)</li> <li>Department for Science, Innovation and Technology</li> <li>Department for the Economy, Northern Ireland</li> <li>Medr, the Commission for Tertiary Education and Research, Wales</li> <li>Scottish Funding Council</li> <li>Office for Students</li> <li>National Academies, sector bodies and other funders</li> <li>UK universities, institutes and other research organisations</li> </ul> <p>We use an evidence-based approach to assess the financial sustainability of R&I in the UK. We share our findings with the sector, so that financial sustainability can be considered across the R&I system.</p> <p>When developing our policy around long-term financial sustainability we consider the whole system. To do this we work with the sector to understand what influences their decision making around research. This includes the relationship between research, teaching and other activities.</p> <p>We are also building our understanding of the factors and behaviours that incentivise research financial sustainability within the UK R&I system.</p> <p>Key areas of our work include:</p> <ul> <li>understanding how funding flows through UK research-performing organisations</li> <li>monitoring indicators of change across the sector</li> <li>exploring and addressing sustainability challenges</li> </ul> <p>Read our blog about <a href="/blog/voices-fixing-the-gap-in-research-funding/">how UKRI can help create a more financially sustainable research system</a>.</p> <h2>Financial sustainability of research in universities</h2> <p>Universities play a pivotal role in the UK R&I system through their teaching, research and knowledge exchange activities. However, they are facing a range of financial pressures which may require them to make difficult decisions about how much they can continue to support and invest in research activities.</p> <p>We are researching how the costs of research have changed over the past decade. We also want to understand what factors are involved in the cost recovery of research grants and doctoral training.</p> <p>Our own data analysis shows a ‘sustainability gap’ across the university sector. The total amount of research income doesn’t cover the full economic costs of universities’ research activities. To manage this, universities use other income streams (such as tuition fees and commercial income) to subsidise their research activities.</p> <div class="ukri-callout-box"> <p>See our <a href="/publications/research-financial-sustainability-trac-data-2022-to-2023/">Sankey diagrams which visualise the flow of funding in universities in 2022 to 2023</a>.</p> </div> <p>Read our <a href="/publications/research-financial-sustainability-data/">Research financial sustainability: issues paper and the associated Sankey diagrams for 2021 to 2022</a>.</p> <p>These diagrams draw on data obtained through a method called Transparent Approach to Costing (TRAC), which is used by universities to understand the costs of their research and teaching and provides a consistent framework for:</p> <ul> <li>calculating the cost of teaching activities</li> <li>assessing the full economic cost of research projects</li> <li>reporting the costs of teaching, research and other activities to the relevant funding bodies</li> </ul> <p>For more information see our <a href="/publications/quick-guide-to-transparent-approach-to-costing-trac/">TRAC explainer</a>.</p> <p>The <a href="https://www.officeforstudents.org.uk/data-and-analysis/trac-data/">Office for Students publishes the latest TRAC data</a>.</p> <h2>Sustainability of research in UKRI’s institutes</h2> <p>UKRI has a large portfolio of institutes, spanning the breadth of our scientific remit.</p> <p>For more information see our <a href="/publications/explainer-ukris-institutes/explainer-how-ukris-institutes-support-research-and-innovation/">explainer on how UKRI’s institutes support research and innovation</a>.</p> <p>We work in partnership to:</p> <ul> <li>show their importance to the R&I system</li> <li>raise the profile of the research they undertake</li> <li>build a robust evidence base from which to assess their financial sustainability</li> </ul> <h2>Our governance</h2> <p>The Financial Sustainability of Research Group (FSRG) is a sector-wide group of experts who can provide independent, evidence-based advice on challenges to financial sustainability. They also discuss strategic policy issues, such as:</p> <ul> <li>the financial sustainability of research</li> <li>efficiency of funding flows</li> <li>the changing, diverse funding environment</li> </ul> <p>FSRG meets three times a year and works with the:</p> <ul> <li><a href="https://www.officeforstudents.org.uk/for-providers/finance-and-funding/trac-transparent-approach-to-costing/review-of-trac/">Regulators and Funders Group</a></li> <li><a href="https://www.trac.ac.uk/about/tdg/">TRAC Development Group</a></li> </ul> <p>Working together ensures that analysis, advice or policy recommendations across these groups is complementary.</p> <h3>FSRG membership</h3> <ul> <li>Professor Mark Smith (Chair), University of Southampton</li> <li>Harriet Barnes, Commission for Tertiary Education and Research (Medr)</li> <li>Morag Campbell, Scottish Funding Council</li> <li>Erica Conway, University of Birmingham</li> <li>Neville Ford (Deputy Chair), University of Chester</li> <li>Paul Fox, independent</li> <li>Jackie Labbe, University of Gloucestershire</li> <li>Paul Murphy, Department for the Economy, Northern Ireland</li> <li>Margaret Monckton, University of Nottingham</li> <li>Bob Rabone, independent</li> <li>Nolan Smith OBE, Office for Students</li> <li>Robert van de Noort, University of Reading</li> <li>Daniel Wake, Universities UK</li> </ul> <h2>Ask a question about research financial sustainability</h2> <p>Email: <a href="mailto:researchsustainability@ukri.org">researchsustainability@ukri.org</a></p> <p class="last-updated">Last updated: 22 November 2024</p> </div> </div> </div> <aside class="govuk-grid-column-one-third-from-desktop ukri-sidebar"> <div class="widget related-content"> <h2 class="govuk-heading-m ukri-sidebar__title">Related content</h2> <ul> <li><a class="ukri-sidebar__link ukri-related-content__link" href="/publications/explainer-ukris-investment-portfolio/"><span>Explainer: UKRI’s investment portfolio</span></a></li> <li><a class="ukri-sidebar__link ukri-related-content__link" href="/publications/explainer-dual-support-funding-for-uk-research-and-innovation/explainer-dual-support-funding-for-research-and-innovation/"><span>Explainer: dual support funding for research and innovation</span></a></li> <li><a class="ukri-sidebar__link ukri-related-content__link" href="/publications/research-financial-sustainability-data/"><span>Research financial sustainability data</span></a></li> </ul> </div> </aside> </div> </div> </main> <section class="govuk-width-container beta-banner__container govuk-!-margin-bottom-6" aria-label="Site announcements"> <div class="beta-banner"> <div class="beta-banner__inner"> <div class="beta-banner__content govuk-body-s"><p data-pm-slice="1 1 []">This is the website for UKRI: our seven research councils, Research England and Innovate UK. 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