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Public investment from the Northern Powerhouse Investment Fund and its counterpart in the Midlands have been fundamental in supporting innovation-led businesses, according to new research.
A joint report from the British Business Bank, UK Research & Innovation and Innovate UK titled ‘Backing Innovation-led Businesses: the role of public investment’ found that businesses that had received R&D project funding or were ‘research council spinouts’ represented 36% of the NPIF’s equity portfolio, and 31% of the portfolio of the Midlands Engine Investment Fund.
The report highlights the success of public investment in driving innovation, and the importance for businesses and research organisations to access finance to get new technologies off the ground. Research found that 93% of equity recipients and 53% of debt recipients of the NPIF were able to go on to increase investment in R&D as a result of the additional finance.
Ken Cooper, Managing Director – Venture Solutions at the British Business Bank said:
“The BBB’s regional initiatives are focused on unlocking potential and enabling growth across the UK. The findings from this latest report show that innovation and funding go hand in hand, that our funds are finding innovative companies to support from across the UK and, as a result, are having a measurable impact at a regional level.”
Neil MacDonald OBE, NPIF Strategic Oversight Interim Chair, said:
“The Northern Powerhouse Investment Fund has made a considerable impact on the region since its 2017 launch, supporting businesses in traditional and innovative sectors to develop their services and products. The North has always had a pioneering spirit and as demonstrated by the findings in this report, PIF has been an important tool to the success of innovation-led businesses.”
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.