UK sector wants to double industry spin-out investment

UK universities are aiming to double the level of external investment they receive for innovation to £10 billion a year.

Unveiling the new ambition at a science summit in London, Universities UK (UUK) said that increasing the amount of industry investment going into university spin-outs and student-led start-ups would create jobs and boost economic growth in all areas of the country.

The announcement at the UK Global R&D and Science Investment Summit on 9 June follows calls by Rachel Reeves, the chancellor, in March’s Mais Lecture for greater investment in areas of the economy with the potential to drive growth and create jobs.

UUK says that this ambition can be achieved by working with the government on developing a new UK-wide spin-out and scale-up fund that can attract support from UK institutional investors as well as sovereign wealth and pension funds. In addition, institutions can work with mayors and devolved nations to grow regional investment partnerships, and work together to generate a pipeline of high-quality university-linked investment opportunities across the UK, UUK continues.

Universities can also work with UK Research and Innovation to implement recent reviews on research commercialisation, including the Hickson Review and the 2023 independent review of university spin-outs, co-chaired by University of Oxford vice-chancellor Irene Tracey, said UUK.

Vivienne Stern, UUK’s chief executive, said UK universities “consistently produce world-leading research, ideas and foster entrepreneurial talent…but few people know just how many new companies spin out or start up in our universities.”

“We want those companies that are born here to be able to scale here and stay here, creating jobs and wealth in all parts of the UK,” said Stern, who explained that the new “long-term targets and a plan to achieve them” would help to “establish the UK as the most attractive place in the world to invest in and scale university start-ups and spin-outs”.

“Today the sector is committing to work with investors, founders and government to make the UK the best place in the world to start an innovative company, and to help double private investment into UK university innovation by 2035,” said Stern.

Oxford’s Tracey said the “improved access to investment…alongside removal of the barriers that stifle growth, [would help to] translate [the country’s] research excellence into economic growth that benefits everyone in the UK”.

“Creating more high-growth companies that stay in the UK providing well-paid jobs relies on universities in every part of the country working closely with investors, the government and regional partners,” said Tracey. “If we get this right,” she continued, “we will make the UK an attractive place to invest and a world-leading innovation ecosystem built on our creative spirit.”

Welcoming the proposal, Libby Hackett, chief executive of the Russell Group of research-intensive universities, said it was “time to be even more ambitious about how we can help the national, regional and devolved governments to drive growth and increase our global competitive edge”.

“The commercialisation of our research already contributes billions to the national economy. But we can unlock even more, and attracting private investment will be the key,” said Hackett.

jack.grove@timeshighereducation.com