Near and far. The NIHR’s regional and national economic impacts

The Department of Health and Social Care invests around £1.6 billion each year in health and care research through the National Institute for Health and Care Research (NIHR). This study examined how that spending benefits the UK economy and how benefits spread between regions.

NIHR funding supports research jobs, purchases goods and services, and creates further economic activity when workers and suppliers spend their income. It can also encourage private companies to invest more in research. Four examples of NIHR-funded research showed benefits for researchers, the NHS, companies, communities and patients.

Using official regional statistics and an economic model, we estimated that every £100 spent through the NIHR generates about £145 for the UK economy within 5-10 years. The credible range is £137 to £173. Roughly one-third of the economic benefit occurs in the region where the money is spent, while two-thirds spreads to other UK regions.

These findings show that NIHR research spending improves health and supports jobs, incomes and economic growth across the country. The estimates may be higher over a longer period. Further work could add the economic benefits of healthier, more productive people, which were not included in this economic model, and could strengthen future estimates.