This report describes a review of the Biomedical Research Centres (BRC) scheme, undertaken for the DH 18 months after the BRCs were commissioned. This review was a perceptions audit of senior executives involved in the scheme, and explored whether the scheme is working in the way intended. It considered how translational research and innovation were pursued prior to the BRC scheme (including the opportunities and barriers experienced in the past by NHS and academic partners); whether and how institutional relationships are changing because of the scheme; and (if so) how these changes are influencing the health research system. The information obtained through our interviews suggests that the BRC scheme is already contributing to observable changes in institutional relationships between the NHS, academia, industry and other players, and is helping shape the health research system to pursue translational research and innovation with the clear goal of realising patient benefit. The scheme, and the associated changes in stakeholder relationships it has fostered, is also making a significant contribution to capacity-building in the health research system, and is leading to improved resource-targeting, management and governance.