In its annual report, NCUB said that 76,619 interactions between universities and businesses were recorded in 2022/23, an overall 5% fall from 2021/22.

There was an 8.8% fall in the number of large business and university interactions, NCUB said, with a 3.5% fall in universities’ work with small and medium-sized enterprises.

A 0.6% real terms decline in total income from wider knowledge exchange activities with business, excluding licencing, was also observed by NCUB between 2021/22 and 2022/23.

Dr Joe Marshall, chief executive at NCUB, said: “Dynamic partnerships between universities and businesses drive innovation, translate cutting-edge research into real-world solutions that fuel economic growth, tackle societal challenges and enhance public services.

“It’s therefore worrying that new analysis published today reveals some difficult realities for university-business collaboration.

“The government, as well as universities, and businesses themselves, must pause to re-evaluate how we can better sustain and strengthen these connections, so they can reach their full potential. By capitalising on our long history of collaboration, the UK can better position itself in a competitive global economy.”