In November 2023, UK Research and Innovation (UKRI) published the findings of an independent review into university spin-out companies. Led by Professor Irene Tracey and Dr. Andrew Williamson, the review aimed to enhance the UK's position in transforming university research into commercial success.
Key Recommendations:
1. University-Industry Collaboration: Encouraging universities to partner with local ecosystems to expedite spin-out creation on competitive terms.
2. Academic Incentives: Promoting an entrepreneurial culture within universities to motivate academics to commercialize their research through spin-outs.
3. Founder Support: Ensuring founders have access to commercial expertise to build successful spin-out companies.
Progress and Initiatives:
- Best Practice Adoption: As of January 2025, numerous UK higher education providers have voluntarily adopted best practice policies for spin-out deal terms, aiming to standardize and improve equity arrangements.
- Equity Stake Reforms: Following the review's recommendations, 49 universities, including 44 in England, have adjusted their equity expectations. The new guidelines suggest universities take up to 10% equity in software-related spin-outs and up to 25% in life sciences ventures, aiming to attract more investors and support spin-out growth.
- Investment Recovery: Investment in university spin-outs is rebounding, with £1 billion invested in the first half of 2024, surpassing the total for 2023 and approaching the peak of £2.7 billion in 2021.
Looking Ahead:
The review also emphasized the need for improved data on spin-outs. Efforts are underway to develop a national register to better capture and share information on university spin-out companies, facilitating transparency and informed decision-making.
In summary, the UKRI spin-out review has catalyzed significant reforms in university commercialization practices, fostering a more supportive environment for spin-out companies and contributing to the UK's economic growth and innovation landscape.
Sources:
1. [Investment in university spin-outs revives after a tough period](https://www.thetimes.co.uk/article/investment-in-university-spin-outs-revives-after-a-tough-period-925pg22q2?utm_source=chatgpt.com)
2. [Universities to give academics a larger share of spin-out equity](https://www.thetimes.co.uk/article/academics-and-students-will-keep-more-equity-in-spin-outs-enterprise-network-sc6g0nvrs?utm_source=chatgpt.com)
3. [UKRI - Independent review of university spin-outs published](https://www.ukri.org/news/independent-review-of-university-spin-outs-published/?utm_source=chatgpt.com)
4. [UKRI - Spin-outs best practice adoption list](https://www.ukri.org/publications/spin-outs-review-implementation-best-practices-adoption-list/spin-outs-best-practice-adoption-list/?utm_source=chatgpt.com)
5. [UKRI - Spin-out register development visioning report](https://www.ukri.org/publications/spin-out-register-development-visioning-report/?utm_source=chatgpt.com)