TenU Hosts: Building Critical Mass
The Independent Review of University Spin-out Companies recently published by the UK government recommends that TTOs with a lower pipeline of disclosures team up to offer joint TTO services. In this timely event, TenU convened four speakers to share best practice on collaborative initiatives designed to build critical mass for thriving ecosystems.
Chaired by Paul Van Dun, General Manager of KU Leuven Research and Development, the distinguished panel of TenU Hosts: Building Critical Mass featured:
Geeta Nathan, Deputy Director of Innovation Ecosystem Strategy, Innovate UK;
Kelly Sexton, Associate Vice President for Research, Innovation Partnerships and Economic Impact, University of Michigan;
Marion Bernard, Chief Investment Officer, Northern Gritstone; and
Vincent Lamande, President, Ouest Valorisation SATT.
The webinar is available as a podcast created in partnership with Global University Ventures:
Three key messages are outlined below.
1. There is no one-size-fits-all approach to building critical mass.
Regions adopt distinct models in their pursuit of building critical mass, as exemplified by the University of Michigan, the French tech transfer model Réseau SATT (SATT Network) and Northern Gritstone.
Kelly Sexton explained that the University of Michigan collaborated with fellow institutions in the state to support each other’s tech transfer capability. While each university has its own TTO, they share translational funding and entrepreneurial mentorship in the areas of their expertise, promoting exchange and cross-fertilisation in research and commercialisation among the different universities. The success of this collaboration is demonstrated by the impact metrics of their Technology Transfer Network, which has supported the launch of 175 startups, the creation of more than 850 jobs, and $1.2 billion raised in investments since the programme was introduced in 2014, showcasing significant return on investment.
Vincent Lamande reported on Ouest Valorisation SATT, a shared technology transfer office resource for the universities located in Brittany and the Pays de Loire. Ouest Valorisation is one of several centralised offices recommended by the central government to optimise tech transfer expertise across universities of all sizes. The programme plays a vital role in the maturation and commercialisation of technologies, addressing the challenges of bridging the gap between research and private investment. As a publicly funded organisation, the office offers expertise in tech transfer alongside translational funding.
Marion Bernard discussed the role of the investment company Northern Gritstone in addressing the funding imbalance in the UK. Founded by the universities of Manchester, Leeds, and Sheffield, Northern Gritstone supports early-stage science and tech-based companies in the north of England, including academic spin-outs from its founding partners. The company recently announced its £312 million final close of fundraising. Marion emphasised Northern Gritstone’s philosophy of Profit with Purpose combining strong returns for investors with wider positive, societal, and economic impact, including supporting Levelling Up and high-skilled job creation in the North of England.
Meanwhile, Geeta Nathan introduced Innovate UK, the UK’s innovation agency, which provides money and support to drive business innovation. One programme focused on supporting university spinouts is ICURe (Innovation to commercialisation of university research), which is a pre-accelerator programme. Geeta explained that ICURe helps to explore the commercial application and potential application of UK research. To date this programme has created 221 businesses, 700+ jobs and additional investment of £726m. From a place lens, IUK supports businesses through adapting IUK national programmes such as IUK’s Launch pads and Innovation Accelerators to regional level needs. Geeta explained how IUK works with regional and mayoral leadership teams to co-design these programmes.
2. Achieving critical mass comes with diverse challenges ranging from finding entrepreneurial talent to guiding businesses through different commercial journeys.
Building critical mass in the innovation ecosystem presents a myriad of challenges, as discussed by the panellists.
Kelly pointed at the difficulties of finding entrepreneurial talent, emphasising the need for entrepreneurial mentors-in-residence who will adopt a service-oriented mindset. She stressed the importance of selecting individuals excited about innovation, willing to collaborate, and capable of navigating academic timelines.
Vincent emphasised the challenges involved in navigating relationships with the leadership of different universities, acknowledging that their interests and policies may not always be aligned.
Marion discussed the vast scale of opportunities coming from the three founding universities and that collaboration with the TTOs and their deep local knowledge was crucial in identifying these. Despite capital, a lot more is needed to create and scale a business such as developing Go To Market strategies, engaging with potential corporate partners, setting clear value milestones, and identifying industry and entrepreneurial talent. This is where access to an innovation ecosystem is critical.
Geeta highlighted the complexity of defining clusters and emphasised the various perspectives through which a cluster can be viewed and supported as well as drawing on tools which are being developed by Government.
3. Public funding is essential to address challenges and initiate innovative ideas.
Despite facing challenges, the diverse models have proven successful in building critical mass and fostering an environment that is necessary for innovation to thrive. Public funding has played a pivotal role in initiating programmes that tackle challenges within the innovation ecosystem.
Kelly acknowledged two sources of funding, one from the State of Michigan and the other, the recently introduced Build Back Better Regional Challenge. Vincent spoke about the French national initiative, Réseau SATT, funded by the Government, which has supported the creation of 790 startups with an estimated value of 3 billion euros, showcasing an impressive return on investment. Marion discussed that while Northern Gritstone is not directly publicly funded, the platform benefited from Research England's Connecting Capabilities Fund, contributing to the pipeline of opportunities. Geeta highlighted the vital role of Innovate UK, a division of UK Research and Innovation (UKRI), the national funding agency dedicated to science and research investment in the UK. She emphasised its significance in coordinating the country's innovation ecosystem and enhancing collaborative impact across the system.
Public funding serves as a crucial catalyst, providing the financial support necessary for ground-breaking initiatives that will create sustainable environments for innovation and entrepreneurship to thrive.
TenU is an international collaboration of leading technology transfer offices formed to share effective practices in research commercialisation with government and higher education communities, in order to increase the societal impact of research. TenU is funded by Research England and hosted by Cambridge Enterprise.
