Retaining graduates in Liverpool after they have got their degrees is ‘central to growth and prosperity.’ says one local university innovation leader and two pieces of news in the last few days strengthen the city’s case. Tony McDonough reports

Keeping graduates in Liverpool after they complete their studies is a challenge that matters to the city’s growth and prosperity.

Liverpool currently has one of the strongest retention rates among English cities as data from a student recruitment agency in 2025 stated Liverpool retains 76% of its graduates.

Andrew Borland, chief innovation officer at the University of Liverpool’s Virtual Engineering Centre and head of the Novel business support programme, says the Guardian University Guide 2027 rates the university as second only to Bath in the UK for graduate satisfaction.

“Graduate satisfaction speaks to more than two institutions’ performance. It speaks to a generation’s experience of a city region,” said Andrew.

“Young graduates are a big part of a city’s skills base, its entrepreneurial energy and its demographic health. Retaining them, and attracting more like them, is central to growth and prosperity.

“If people have a good experience of a city, they’re more likely to stay, start careers and families, and contribute to growing its economy and communities.”

“Novel is about bringing together some of the region’s most ambitious companies, each with significant growth potential, from sectors spanning advanced engineering, manufacturing, digital, creative and third sector.

“Novel took a new approach of working with SMEs by working with owners and leaders to think about what innovation would look like in their businesses. The more businesses we have in Liverpool doing that, the better the proposition we can offer our graduates.”

Multiple studies show key factors in persuading people to build a life and career in the city they graduated from include job opportunities, higher pay, cost of living considerations, housing affordability and urban amenities.

Liverpool certainly scores highly in affordability and amenities, but what opportunities are available for building a career and prosper?

City region Mayor Steve Rotheram has made it a top priority to transform Liverpool into a powerhouse for life sciences, tech and AI. The Knowledge Quarter Liverpool is an example of this commitment and investment.

Recent headlines offer further evidence that Liverpool is building real momentum as a centre for innovation.

The city was selected from a shortlist of 15 cities worldwide to receive the first ‘City of Innovation’ award from the United Nations World Intellectual Property Organisation. An independent, nine-strong international jury praised Liverpool’s “bold, inclusive vision” of “innovating for tomorrow”.

The successful bid was led by Liverpool City Region Combined Authority and Knowledge Quarter Liverpool, with support from Liverpool City Council and Sci-Tech Daresbury.

Meanwhile, University of Liverpool spin-out Matter Machine Technologies, an AI-driven materials discovery venture, has raised £4 million — the largest investment ever secured by a newly formed spin-out from the university.

Andrew said the two developments sent a powerful message about the city’s direction.He added: “Graduate satisfaction is more than a metric in a higher education league table. It’s a useful biomarker of the economic and civic health across a city region.

“One that policymakers chasing growth should watch as keenly as inward investment, productivity and GDP.”