In the UK, higher education is increasingly a marketised service sharing many characteristics with other professional services such as legal, medical or financial services. With marketisation comes competition, and the need for Higher Education Institutions (HEIs) to develop and maintain strong programmes to attract and retain high-class faculty and fee-paying students. Here, we consider the drivers of programme innovation-i.e. the introduction of new programmes and the withdrawal of existing programmes-in UK universities. Our focus is on undergraduate programmes as these account for three-quarters of all student enrolments. Using panel data for UK universities we identify significant resource, internationalisation and business engagement effects. Financial stringency and more extensive international market engagement both encourage programme introduction. Collaboration with businesses has offsetting effects depending on the nature of the interaction. The results have both strategic and systemic implications. We are grateful to the University and College Application Service (UCAS) for making available the programme level data on which this analysis is based and the Higher Education Funding Council for England (HEFCE) for providing access to consolidated information on business engagement from the Higher Education Business and Community Interaction survey. Useful comments on an earlier draft of this paper were received from participants in the DRUID Conference 2016 and the UICC Conference 2016. Valuable comments were also received from the Editor and three anonymous reviewers.