University joins forces with key partners to launch £20m bid to supercharge regional economy

Posted on 16 March 2026

The University of York has joined forces with the York and North Yorkshire Combined Authority and business leaders to launch a £20 million Government bid to supercharge the regional economy.

If awarded, the investment will help bridge the gap between laboratory research and commercial scale-up. 

If successful, funding from the Local Innovation Partnership Fund (LIPF) will be used to bridge the gap between research and commercial reality – unlocking the North’s potential to drive national growth and high-skilled jobs.

The proposal aims to turn the region’s research excellence into a high-growth economic engine, focusing on three priority sectors: BioTech, RailTech and CreaTech.

Innovation led

LIPF is a new £500 million UK Research and Innovation-led programme which champions an approach that brings together academia, industry and government. 

If awarded, the investment will target specific innovation bottlenecks that currently prevent high-potential technologies from reaching the global market. It will help bridge the gap between laboratory research and commercial scale-up. 

Leveraging devolved powers and the University’s research expertise, the bid positions York and North Yorkshire as a proactive hub for the UK’s national growth agenda and Industrial Strategy.

Industrial strategy

Professor Charlie Jeffery, Vice-Chancellor of the University of York, said: "This is more than a bid for funding; it is a blueprint for how important regions in the North can drive the UK’s Industrial Strategy.

“By aligning the University’s research strengths with the Combined Authority’s vision and the region’s industrial heritage, we are building an environment where new technologies in green energy, transport and digital media can scale up quickly. We will ensure that the partnerships will directly fuel the prosperity of our region and the UK.”

The investment bid focuses on three priority sectors:

1. BioTech: Powering the Circular Bioeconomy. Building on the success of BioYorkshire, this area will tackle the global demand for low-carbon fuels and chemicals. It addresses capabilities to bridge the critical gap between discovery and industrial mass production.
2. RailTech: Technologies that improve performance. Utilising the City of York’s status as a national rail hub, this area focuses on resilience and decarbonisation of rail systems. It tackles a range of technologies, from AI-powered track maintenance to advanced communications and intelligent passenger safety systems.
3. CreaTech: An accelerator for innovation and adoption. Leveraging capabilities like XR Stories and a new Connected CreaTech Innovation Lab, this area focuses on immersive and data-driven technologies to de-risk scale-ups and improve productivity across both the BioTech and RailTech sectors.

York and North Yorkshire has a £28bn economy and is one of the most productive Combined Authority areas in the North.

A new gear

The LIPF bid aligns with the UK’s wider goals for regional devolution and sustainable growth. By creating a corridor of innovation that stretches from York to the Tees Valley, the partnership ensures that the North remains at the forefront of the UK’s transition to a high-tech, low-carbon economy.

David Skaith, Mayor of York and North Yorkshire, said: “In York and North Yorkshire we have the expertise and the vision, but now we need the funding to back that ambition and kick growth into a new gear.” 

“This £20 million bid is the key that unlocks our future as the powerhouse of the North, creating a clear pathway for our tech businesses to scale up and grow. 

“With the right support, we will bring our world-class researchers and our business leaders together to build a greener, more productive economy that works for everyone.” 

The partnership includes representation from leading figures in the business community, including Jennifer Wood, Co-Founder of Ripon based O&3 Limited and Chair of York and North Yorkshire Business Board.

Remove bottlenecks

Jennifer Wood, Chair of York and North Yorkshire’s Business Board, said: “As a business owner, I know that the leap from a brilliant concept to industrial scale can be the hardest part of the journey.

"This bid is specifically designed to remove those bottlenecks, providing the infrastructure and support that firms in our region need to compete on a global stage.

"By aligning academic excellence with commercial expertise, we are making York and North Yorkshire the most attractive place in the UK for innovators to invest, grow, and create jobs.”

An independent expert panel will assess submitted LIPF applications with a decision on funding announced by the UK Government later in the year.

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