Completely agree. The UK research funding model systematically and deliberately fails to fund the full economic cost of research. And innovation primarily delivers impact not income - the wealth generation effects are in the broader economy around the university
I’m all in favour of greater research translation to innovation, but the notion that this can be a sustainable flow of income to fund universities is fanciful. Look at the US. Even industry-funded research in the U.K. struggles to make a net financial contribution to Universities