Return of information on Knowledge Exchange activity in AY 2025–26

3. The SFC KE metric return is an established annual data collection. The metrics represent indicators of institutional KE performance and quality. They capture the output of knowledge exchange activity: both the breadth of institutional engagement, including the number of organisations worked with, and the resultant income from these knowledge exchange activities.
4. Submission of SFC KE metric data is a condition of grant for all institutions in receipt of the Knowledge Exchange and Innovation Fund (KEIF), SFC’s core funding for university knowledge exchange and innovation. This data is used to inform annual institutional KEIF allocations and, together with KEIF five-year strategies and annual reporting, forms a key element of monitoring the KE&I expectation in SFC’s approach to assurance and accountability, the Outcomes Framework and Assurance Model.
5. KE metric return data is published annually at both institutional and aggregate sector level, supporting transparency and providing insight into knowledge exchange activity across Scotland’s universities.

Audit and sign-off

6. Institutional KE contacts will be provided with an electronic form for the return of this data. Detailed guidance on the return is provided in the annex to this document, along with a sample template. This guidance should be considered carefully when completing the return, noting the specific updates/improvements detailed below introduced for the AY 2025-26 collection.
7. SFC reserves the right to audit data submitted through the KE return and to request supporting information from institutions. Where significant year-on-year changes or inconsistencies are identified, particularly in areas where alignment with the HESA Finance return is expected (i.e. External Research Grant and Contract Activity/Income; see paragraph 15), SFC will seek clarification before KEIF allocations are finalised and may request additional evidence or underlying data. For example, on income derived from translational award schemes and venturing.
8. Institutions should involve their central finance team in the preparation and sign-off of the return prior to submission to ensure data accuracy and consistency. Please email your return to KEIF@sfc.ac.uk by Monday 30 November 2026.
9. Please also note that KEIF strategy reports for AY 2025-26 should be submitted between 1 September 2026 and 30 November 2026.

10. Building on updates and improvements introduced through the AY 2024-25 KE metrics return, the guidance has been further refined to improve clarity, ensure consistency and reflect current schemes/awards. The updates are informed by information submitted by institutions (Translational Award Schemes) and internal data checks undertaken as part of the AY 2024-25 return process. These updates have been considered by the Short Life Working Group established in 2024 to support improvements to the return.

Translational Awards Schemes

11. A definition of translational award was included in the AY 2024-25 return, alongside a data collection exercise to update schemes listed in the template. Informed by submissions from institutions and information provided by UKRI, the template now includes an updated and more comprehensive list of accepted UKRI translational award schemes. The category now also includes Scottish Government’s Proof of Concept funding, with income collected through a separate sub-category.
12. The schemes listed in the template are expected to account for the majority of translational award income reported by institutions through the return. The category “Other” may be used to return translational award schemes that are not listed in the template, however, where income is reported under this category, institutions must use the additional table to provide the name of the translational award scheme, identify the funder, include a hyperlink to scheme details (where available), and report the associated income received. This is intended to ensure eligibility and consistency of reporting. Income received without an identifiable and specific translational award scheme should not be returned.
13. Announced in February 2026, UKRI intends to streamline its approach to translational award funding. Further updates to the guidance/template will be considered once the approach is finalised, with implementation likely in the AY 2026-27 collection.

External Research Grants and Contracts

14. Institutions are asked to submit data on external research grant and contract activity and income. While this information is also reported through the HESA Finance Return, the SFC KE metric return captures additional detail (i.e. geographical breakdown), which provides important evidence of the reach, value and impact of the knowledge exchange activity of institutions not otherwise available. As such, submission through the SFC KE metric return remains an important component of the collection. Institutions should ensure that activity and income data is consistent with that submitted to HESA where the guidance specifies alignment is expected, noting that additional data submitted via the HESA Finance return is used to inform core funding for research through the Research Excellence Grant i.e. external research grant and contract activity/income from RCs and charities.
15. SFC will undertake a detailed review of returns following submission and will request further information where inconsistencies are identified ahead of KEIF allocations. SFC may ask for data to be amended where necessary and reserves the right to ask for all relevant data. The guidance notes and return template have been updated to reflect expectations regarding consistency of return.

Enterprise schemes – ‘Other’

16. Given updates made to the guidance in recent years we do not expect many returns under, ‘Other’. Where a return is made, please provide details in the table provided, including named scheme.

Continuing Professional Development

17. The guidance for the Continuing Professional Development (CPD) category has been updated to reflect the UK exit from the European Union. Institutions should include income for CPD provision delivered outwith Scotland provided it is for UK domiciled students. References to EU domiciled students have been removed. Institutions should exclude income relating to students/delegates whose place of domicile lies outwith the UK (previously EU). These planned changes were communicated to the sector in the guidance supporting the AY 2024–25 return.

18. No changes have been made to this category for AY 2025-26. The return records annual venturing activity and the guidance stipulates that investment should be included for a company created in the reporting year only, any investment received beyond the year of the return period is not captured in the return.
19. We have been considering whether the current return has led to income arising from venturing to be underreported. To better understand the scale and frequency of this issue we will contact institutions separately to seek further data. We will then consider if this data could be used to inform future KEIF allocations, consistent with an annual return that is based on current three years of data (weighted 2,3,5).

1. Knowledge Exchange (KE) metric data is collected annually by SFC.
2. The KE metric data returned relates to the university Academic Year (AY), i.e. 1 August to 31 July.
3. The metrics represent important indicators of sector activity and include information on the output of knowledge exchange activity: both the type and number of organisations with which institutions have engaged and the resultant income from these engagements. The data is used to inform the Knowledge Exchange and Innovation Fund (KEIF), our core funding for university KE&I.
4. The metrics are:
   • External Research Grant and Contracts.
   • Continuing Professional Development (CPD).
   • Licensing.
   • Consultancy.
   • Enterprise Schemes.
   • Translational awards.
   • Venturing.
   • Outreach.

5. Income data is also collected by geographical location and organisation size, including small and medium size enterprises (SMEs).
6. The data returned by institutions should be auditable. Institutions should, therefore, retain the worksheets and other material used in the preparation of the returns.

   SFC reserves the right to audit data submitted through the KE return and to request supporting information from institutions. Where significant year-on-year changes or inconsistencies are identified, particularly in areas where alignment with the HESA Finance return is expected (i.e. External Research Grants and Contracts), SFC will seek clarification before KEIF allocations are finalised and may request additional evidence or underlying data.

Income

7. You should include the actual income received in the year for each category of income rather than the initial value of the grants or contracts. You should include all income in respect of externally sponsored activities carried out by the institution, or its subsidiary organisations, and for which directly related expenditure has been incurred, including recovery of indirect costs. Subsidiary organisations for the purpose of this return are defined as all organisations that are classed as subsidiary organisations in the audited consolidated financial accounts of the institution.
8. When acting as lead partner or co-ordinator on a project you should exclude any income you receive for onward transmission to other partners under any heading. Also, if you collaborate with any other non-subsidiary organisation to generate any income collected in this return, you should only return your share of the total income generated from the activity.
9. Where VAT is payable on all or part of a grant or contract at the point where the money is paid to the institution, this should not be included as part of the institution’s income.

Type of organisation and geographical location

10. We are asking for data on the number of organisations with which an HEI has worked to secure the reported income in each category. We are also asking HEIs to identify the type of organisation, including how many of these are SMEs.
11. The definition of an SME remains unchanged from the European Commission definition and is the same as used for the Higher Education-Business Community Interaction (HE-BCI) survey return. Details may be found at:
    http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition/
12. We also ask for a breakdown by geographical location (Scottish, Other UK and non-UK).
13. For the purpose of this return “Scottish” will be defined as an organisation with a Companies House registration with an “SC” prefix and/or with a headquarters, R&D or a significant production base in Scotland. If the organisation does not have an “SC” registration, the lead contact or team with which the HEI is working should be based in Scotland.
14. UK organisations that do not meet these criteria should be returned as “other UK”.