The Oxford coronavirus vaccine proves how important UK universities are to the world

News that researchers at the University of Oxford have reached a breakthrough in the hunt for a coronavirus vaccine offers a ray of hope amid the gloom. It is also a reminder that the UK’s higher education institutions truly remain world-beating.

As chancellor of the University of Birmingham (UoB), I know how frequently universities can be found at the forefront of solutions. UoB recently published a joint report with the CBI identifying practical ways to decarbonise heating systems throughout the UK. During a recent CBI roundtable with vice chancellors representing some 50 universities, I heard how they have been innovating and helping others during the Covid-19 crisis, manufacturing vital equipment, and enabling students to continue studying. I also learned just how seriously the pandemic has affected them.

Clearly, the last four months have been a whirlwind. In March, students saw their academic experience upended by the pandemic. Those hoping to start in September were also deeply concerned. In response to this challenging landscape, universities worked at incredible speed to develop new models of blended and online learning, make campuses safe, support students’ mental health and, where possible, provide hardship funds.

The importance of higher education institutions extends far beyond their efforts during the pandemic. As anchor employers for local populations and regional supply chains, universities are key players in the levelling up agenda. Latest analysis by London Economics highlighted that the University of Birmingham supports over 15,000 jobs in the West Midlands and contributes £3.5bn to the UK economy. Sector wide, they locate the direct and indirect economic contribution of higher education institutions at £101.9bn. Given the scale of this output, it is clear that the continued success of our higher education institutions is essential to building back better.

But it must be done in tandem with further education if the UK is to truly fulfill its potential. The two sectors complement one another, so reforms to further education cannot come at the expense of university funding. The upcoming Further Education White Paper presents a golden opportunity for clearer pathways to delivering skills for the future – in particular, for high-skilled jobs key to ensure a green recovery.

This pivot to a high skilled, sustainable and inclusive economy will be dependent on strong innovation infrastructure. As the world watches the global race to discover a coronavirus vaccine unfold in real-time, the importance of R&D has never been clearer. Increasing UK investment in R&D to 2.4 per cent will allow us to fully reap the benefits of on-campus research and entrepreneurship.

A commitment to diversity and internationalism must run alongside these priorities. Our global scientific impact is significant and largely reliant on international collaboration – 2013 data revealed that with just 3.2 per cent of the world’s R&D spend, the UK accounted for 16 per cent of the most highly-cited research articles. Not to mention that around a third of our brilliant university academics come from outside of the UK.

Having moved to this country when I was 19 and built my career here, I have seen how immigration plays an invaluable role – not only in meeting our economic aspirations, but ensuring we continue to be one of the highest recipients of inward investment in the world.

The UK’s respected education institutions, a primary source of soft power, play an important role in this by strengthening our global reputation. In turn, they are heavily reliant on international outreach. Any loss of international students will imperil university revenues and damage the economies of communities where they were set to study. To tackle this and increase the number of international students, we must implement a more streamlined visa application process.

Equally, considering that exports are fundamental to the government’s vision for “Global Britain” and account for almost a third of UK GDP, the UK must be transformed into an exporting powerhouse. The International Education Strategy notably identifies higher education as a key sector to drive export-led growth.

Let’s remember universities don’t just teach degrees. They provide the technological innovation and skilled workforce vital for our economy to thrive. There are plenty of successful university spin-offs confirming this. The breakthrough by the brilliant team at the University of Oxford must be the first of many. We can ensure this by backing our world-leading higher education institutions.

Lord Karan Bilimoria is CBI President