Our fifth annual Spotlight on Spinouts report showcases the state of the UK’s spinout economy and shares important evidence to help inform and contribute to national discussions on the wider debate and future policy in this area.
The report builds on the Academy’s Enterprise Hub’s work of supporting talented entrepreneurs and decision-makers in transforming their engineering innovations into disruptive spinouts and startups.
Spotlight on Spinouts has provided a crucial read and a comprehensive analysis of the trends in IP and commercialisation in the UK. Its valuable quantitative evidence helps us understand where collective action must be taken in an area that has historically lacked data.
In 2023 we were encouraged to see government engage deeply on how to improve spinout success in the UK resulting in the Independent Review of University Spinout Companies, with recommendations to help improve the creation and growth of university spinouts in the UK.
To accompany this year’s publication of Spotlight on Spinouts, we have published UK Spinouts – A status update, tracking the implementation of the Review’s recommendations. Tracking the progress will help us to understand how it will impact the founders and companies we support, as well as how we will continue our independent contribution to the policy landscape.
Explore previous editions
Best Practice
Accelerate towards innovation-friendly university policies that all parties, including investors, should adhere to where they are underpinned by guidance co-developed between investors, founders, and universities.
Current progress
In September 2024, UKRI published a circular letter formalising expectations on HEPs regarding best practices from the spin-out review.
As of 1 November 2024, over 50 universities across the UK have voluntarily adopted the best practice policies identified in the review and have published changes to their policies. This list will be updated periodically.ii The initial expectation of this initiative was for Research England to monitor universities in England, however there has been significant buy-in from Higher Education Providers (HEPs) across the nations. This recognition of the importance of the Review has expanded this to a UK-wide approach.
Since the Review was published, these best practices have also been developed further in TenU’s USIT Guide and USIT for Software Guide. There is currently no evidence for the development of guidance for hardware and engineering spinouts.
National Spinout Register
More data and transparency on spin-outs through a national register of spin-outs, and universities publishing more information about their typical deal terms. The Higher Education Statistics Authority’s ongoing review of the Higher Education Business & Community Interaction (HE-BCI) dataset must present solutions to improve the reliability of data on spin-outs.
Current progress
A national Spinout Register is being developed by Research England in partnership with HESA, with the University Commercialisation and Innovation (UCI) Policy Evidence Unit at the University of Cambridge as Research England’s national advisors.
The Register will provide the first publicly curated list of all spinout companies across the UK. According to Research England’s visioning report, the Register will deliver against the specific need for more data and transparency on spinouts as stated in the Review. Additionally, the data will likely result in wider evidence and policy insights that can be used by a range of relevant stakeholders.
It is expected that Register will be published in Spring 2025.
Sharing technology transfer capability
Create shared TTOs to help build scale and critical mass in the spin-out space for smaller research universities. These could be operated through collaboration with established university TTOs and could be implemented at a regional or sector-wide level. We note that the latter may be particularly of interest to spin-outs from the social sciences, humanities, and the arts.
Current progress
Research England has established a pilot programme which called for diverse and innovative models of sharing tech transfer capability. Through its Connecting Capability Fund (CCF), Research England has allocated over £4,700,000 to 13 collaborations, involving 49 higher education providers.
The pilot collaborations will be exploring both sector-specific (including digital, artificial intelligence, and health) and regional approaches to tech transfer and are allocated across all regions.
Proof-of-concept funding
Government should increase funding for proof-of-concept funds to develop confidence in the concept prior to spinning-out. These should integrate with the timing and offering of commercialisation support and venture-building programmes. Investors should lend their expertise to assessing funding bids for proof-of-concept and translational funds.
Current progress
The government has announced that they will provide at least £40 million in proof-of-concept funding over the next five years. In support of the UK’s Growth Mission, the fund will help researchers to bring their innovative ideas to market.
UKRI have announced a £9 million proof-of-concept fund that will work across all disciplines and provide critical early-stage report to projects.
Read full recommendations
Download the report to look at the progress of the Review’s recommendations in its entirety.
Contact us
For further information about this project or if you have questions, please contact Arizona Rodriguez.
R&D tax reliefs
Tax incentives, including R&D tax reliefs, have long been recognised by engineering businesses as important measures to support business R&D investment in the UK. R&D tax reliefs can encourage large multinational companies to invest in R&D in the UK, as they decrease the relative cost of the work. While, for small companies, the tax reliefs can promote R&D investment by increasing cash flow to respond to opportunities as they arise.
Recent governments have taken an interest in reforming the UK’s current tax relief system for R&D, with the most recent changes taking place as part of Budget 2023. The Academy and its Enterprise Hub have taken an active interest in how these incentives support R&D-intensive SMEs and business R&D in general.
Tax relief briefings and explainers
Knowledge Exchange and Commercialisation
A vital part of innovation is the transfer of ideas from academic research into products, processes, and services. Drawing on our experience of working at the intersection of research and industry we are interested in how the UK can accelerate the commercialisation of innovative ideas from its world leading university sector – as well as how the government can ensure that those innovative businesses can take root in the economy and thrive.
Commercialisation of University Research
In collaboration with the Academy’s Enterprise Hub, we are exploring how the UK can best ensure that it is maximising its opportunities to create successful university spin out companies that grow to scale and deliver value for our economy and society.
- In March 2017, the Academy welcomed the House of Commons Science and Technology Committee report on managing intellectual property and technology transfer.
- The Academy had previously submitted written evidence to the Select Committee's inquiry in October 2016.
Transforming UK Translation
We believe that research should have the widest possible benefit to society, and that new knowledge and discoveries should be applied beyond the academic setting wherever possible. A vibrant translation system is essential for this to occur.
In July 2017, the Academy, alongside the Academy of Medical Sciences, the Royal Society, and the Wellcome Trust, outlined a series of commitments to ensure that translation is recognised and celebrated as an integral part of academic research.
Supporting UK businesses to start and grow
The Academy aims to provide a voice for growing engineering businesses in the UK. This goal has fuelled a range of our work:
- In September 2017, the Academy submitted evidence to HM Treasury’s Financing growth in innovative firms inquiry.
- The response built on the Academy’s Industrial Strategy green paper response and submission to the Business, Innovation and Skills Committee’s Access to finance inquiry in February 2016.
- In April 2017, the Academy’s joint response to the government's industrial strategy Green Paper was published.
- In February 2017 the Academy responded to the Department for Business, Energy and Industrial Strategy Review of the Small Business Research Initiative, informed by our report on public projects and procurement in the UK.