How NICD transforms £1 of data investment into £27 of economic impact

What happens when organisations have the expertise to turn data into action? A new report exploring outcomes from the National Innovation Centre for Data reveals the colossal impact of its work across UK business, jobs, and investment.

Contents:

• Establishing a Centre for Innovation
• Building capability, not just delivering projects
• Attracting innovation and investment to the region
• A return that extends beyond the original investment
• Driving forward academic growth
• From individual projects to an ecosystem of change
• What comes next?

Establishing a Centre for Innovation

Based at The Catalyst in Newcastle’s Helix innovation district, Newcastle University’s National Innovation Centre for Data (NICD) helps businesses and organisations build their data and AI capabilities through practical support, collaborative projects, training, technical seminars and awareness-raising events.

Nine years on from the Centre’s creation in 2017, new independent economic analysis from Ortus Economic Research shows how an approach centred on practical skills, collaboration and long-term capability can translate into measurable economic impact.

Building capability, not just delivering projects

NICD was established to help organisations make better use of their data by bringing specialist expertise in data science and AI directly into real-world challenges.

Its approach is deliberately collaborative. Rather than simply developing a solution and handing it over, NICD works alongside people within organisations, transferring knowledge and practical skills as the project progresses.

Our collaborative model is designed to leave organisations with the skills and capacity to continue developing and applying AI and data science long after a project has ended. As NICD's reach and reputation continues to grow, we want to build on this impact and help even more organisations realise the value of their data.’ - Professor Paul Watson, former Director of the National Innovation Centre for Data 

A business might start a project wanting to solve a particular data problem, but by the end, it will have a team that understands its data better, has developed new technical skills, and is better equipped to both deal with challenges and identify opportunities in the future.

Between 2018 and 2026, NICD has generated an estimated £141 million in cumulative net additional Gross Value Added (GVA) for the UK economy, including £116 million retained in the North East of England.

Furthermore, NICD’s collaborative work has contributed to 570 net additional jobs, with 476 of these in the North East. The report also estimates up to 6,600 people being upskilled in data science and AI across the UK.

NICD’s Senior Data Scientists Dr Georgia Atkinson and Louise Braithwaite speaking with an attendee at the Impact, Legacy, Future event. Credit: Thomas Jackson

Attracting innovation and investment to the region

An organisation such as NICD does not only support the businesses it works with directly. Its presence can also contribute to the attractiveness of the region it operates in.

For investors considering where to locate, access to specialist expertise, research, skills, and potential collaborators are vital.

NICD's recent economic impact assessment identifies the Centre as a regional asset that contributes to inward investment in the North East. It estimates that 1,584 new digital and science-related jobs have been attracted through inward investment associated with NICD's presence in the region.

A prominent example of a recently acquired investment is Leonardo, the defence and security company, which announced in 2023 that it was opening its eighth UK site in Newcastle.

‘You [NICD] are the reason we chose Newcastle.’ - Clive Higgins, UK CEO of Leonardo

Leonardo’s investment in a new high-technology science and engineering facility at the Helix co-locates it with important partners and collaborators. This shows that the value of expertise is not always confined to the organisations directly using it. Over time, it can become part of the infrastructure that makes a place attractive to other organisations.

A return that extends beyond the original investment

The economic analysis also provides a way of looking at public investment differently.

NICD was created with £30 million of funding from the UK Government and Newcastle University. The impact report estimates that for every £1 of direct public funding, NICD has generated £27.20 in net additional GVA.

This is around four times the UK Research and Innovation (UKRI) average.

'This new economic analysis highlights the significant positive contribution that the National Innovation Centre for Data has made to both the North East of England and the wider UK through developing workforce skills, creating jobs, and attracting inwards investment.’ - Professor Paul Watson

Professor Paul Watson speaking at NICD’s Impact, Legacy, Future event. Credit: Thomas Jackson

Driving forward academic growth

There is also evidence of a wider, ongoing research effect.

Between 2017 and 2026, the report details how NICD has also supported in attracting over £102 million of public research funding to the University. This came through its inclusion in funding bids, enabling the University to stay at the forefront of data science and AI.

'Newcastle University is proud to be the home of the UK’s National Innovation Centre for Data. Its work reflects the University’s commitment to ensuring that world-class research and expertise are translated into practical solutions that respond to the technological demands of the modern world. The success of NICD demonstrates the important role universities can play in turning academic expertise into real-world outcomes.' - Professor Chris Day, Vice-Chancellor and President of Newcastle University

With its impact projected to grow over the next ten years, NICD provides a model for how universities can use their specialist strengths to support regional and national economic growth.

Professor Chris Day delivering his opening speech at NICD’s Impact, Legacy, Future event. Credit: Thomas Jackson

From individual projects to an ecosystem of change

Perhaps the most significant finding is what happens when these activities accumulate.

NICD has now delivered more than 180 collaborative projects with organisations ranging from SMEs and start-ups to major companies, charities and public sector organisations. These include Sage, NHS England, Procter & Gamble, and Newcastle Building Society.

Each project addresses a particular challenge.

But collectively, they contribute to something larger: a growing pool of people with data and AI skills, businesses with greater capacity to innovate, stronger links between research and industry, and an ecosystem that is increasingly attractive to further investment.

Dr Ashmita Randhawa leading a panel (from left to right) Paul Hands, Rojin Yarahmadi, Mark Little and Barry Hodgson at NICD’s Impact, Legacy, Future event. Credit: Thomas Jackson

What comes next?

With NICD’s important role in attracting inward investment taken into account, over the coming decade to 2036, NICD’s economic impact is projected to total £1.2 billion. £1.1 billion of this is expected to occur in the North East of England.

While these are projections, the evidence found in the report demonstrates the potential for a different model of innovation support: one that combines research expertise with practical collaboration and skills transfer.

For NICD, the ambition now is to build on that model, and ensure organisations have the access to technology they need, and also the people, skills, and partnerships to make change possible.

You might also like…

• explore the changes that the National Innovation Centre for Data is driving in our economy
• read the NICD Economic Impact Report 2026
• explore impactful NICD client stories and case studies