Introduction
By Professor Patrick Chinnery, MRC Executive Chair.
Medical Research Council (MRC) funded discovery science has pushed the frontiers of biomedical knowledge whilst driving economic growth and advancing human health.
Our own funding schemes have accelerated the translation of our discoveries in close partnership with:
- National Institute for Health and Care Research (NIHR)
- medical charities
- the commercial sector
MRC has empowered a large proportion of UK spin-outs in the biomedical sector, and every £1 we invested through our translational schemes has leveraged £5.3 from industry.
A powerful benefit for the UK economy arises from the increased longevity and productivity of the population resulting from new health interventions. Informing health policy, as well as the development of more cost-effective therapies that lower NHS expenditure also provide significant benefits for the UK economy.
Our successes have flourished across the UK, contributing to local prosperity through the creation of new jobs.
We are proud of what we have achieved over the last decade, and based on our track record, we’re confident that MRC will make an even stronger contribution to UK growth in the years to come, addressing major health needs in our ageing society.
Pathways of economic impact arising from MRC-funded research
Funding from Medical Research Council (MRC) benefit the UK economy through different pathways:
- healthy population
- spin-out sales
- spill-over technologies
- sales
- more efficient technologies
- inward investment
- jobs
This has a positive effect on the economy through industry, NHS, and the voluntary and charity sector, leading to economic growth.
Economic impacts
Product sales
Sales of £258 billion from the two globally best-selling therapeutics of the hundreds of products arising from MRC-funded research.
Two spin-outs currently generating over £100 million in revenues per annum, despite only recently receiving marketing authorisation.
Investment in spin-outs
Attracting more than £10 billion in external investment.
Currently 296 active spin-outs.
Attracting 34 percent of all UK investment in biomedical spin-outs launched 2008 to 2023.
Sale of spin-outs
Mergers and acquisitions of spin-out arising from MRC-funded research more than £3.7 billion.
Jobs
5,400 jobs created from all known spin-outs linked to MRC-funded research.
Creating successful non-therapeutic businesses
Contract development and manufacturing organisations (CDMOs) and contract research organisations (CROs) providing manufacturing and research services to the pharmaceutical sector.
Creating a healthy workforce
Prostate cancer treatment resulting in 31,250 extra life years for UK patients.
£25 billion benefit to the UK government through improved lives through revised tobacco packaging.
More efficient therapy protocols saving time for UK patients, recovering £8 million each year in lost work hours.
More economically efficient NHS
Enhanced stroke diagnosis saving NHS £200 million per year.
Revised blood clot management saving NHS £140 million over 20 years.
MRC's successful translational funding
500% return on investment: spin-outs linked to the £577 million investment in translationally focused research attracted £3.1 billion in external funding.
Leverage of £5.3 of external investment from every pound invested in proof of concept funding.
A greater proportion of MRC translational schemes (59%) give rise to spin-outs that attract external funding than all other MRC funding streams combined (51%).
Spin-outs linked to MRC translational research: 146 new companies.
Quotes from Ipsos Mori report ‘Development and growth of spin-outs from MRC’
“Effective translation benefited from funding through MRC’s dedicated translational research programme – allowing researchers to progress the development of the relevant assets further prior to the formation of an external commercial vehicle (in some cases as far as early clinical trials).”
“While the high level of investment in the continuing pipeline of spin-outs arising from MRC funded research since 2008 shows promise of great economic impact in the future, the time lag between breakthrough and clinic has meant that the profits have yet to be realized. Spin-outs pre-2008 demonstrate the sales impact that can develop from research breakthroughs as well as the growth of UK companies and their job creation.”