The Spinout Review One Year On: Five Takeaways

On 19th November 2024 TenU’s event, One Year One Mission: Celebrating the Spinout Review, brought people together from across the innovation landscape to celebrate the impressive progress that has already been made in implementing key recommendations, only one year after the launch of the Spinout Review.

The event was hosted by Tim Haines, Chair of TenU and Executive Partner, Abingworth, who pitched an ambitious vision. The UK’s innovation ecosystem has many world-leading strengths, and we should all be ready to champion these globally. However, without serious investment and the right culture and institutions, there is a real risk that the UK could fall behind and be unable to match global competitors.

1. Commitment to Drive Progress

Professor Irene Tracey, Vice Chancellor, University of Oxford and Andrew Williamson, Managing Partner, Cambridge Innovation Capital looked back at the process of developing the Spinout Review. Particularly striking has been the huge shift in attitudes towards the strengths of the UK Research Base in supporting innovation. Whereas initially there had been scepticism and misconceptions, the use of a data-driven approach in the review had provided an opportunity to shine a light on the great progress in research commercialisation across the UK, emphasising that there are in fact strong grounds for optimism.

Professor Dame Jessica Corner showcased the impressive progress that Research England has already made in delivering the recommendations of the review:

· 44 English universities, three Scottish and two Welsh have adopted the USIT guidelines within the first year.

· In September 2024 13 pilots for shared technology transfer offices (TTOs) were announced, involving 49 organisations across England.

· Quick work has also taken place to improve data and understanding of the sector, with a spinout register due to launch in the spring.

2. The USIT Guides: More Deals Faster

The first panel session highlighted the positive benefits already realised by the universities that have adopted the USIT Guide. It has been easier to frame discussions and shape decision-making with senior leaders in universities, driving a renewed focused on generating as many spinouts as possible. Researchers have been open to hearing positive examples of successful spinouts, and there have been signs of a culture shift. More academic staff are starting to recognise the value of commercialising research and see how this fits into an academic career model.

3. Shared Technology Transfer Offices: Strength through Collaboration

The second session provided a taster of the anticipated benefits of the new pilot TTOs. This model will build on existing collaborations for example in Greater Manchester and the Southwest of England. It is thought that the model will be particularly beneficial to small universities that do not currently have the resources and expertise to support research commercialisation. In all cases that were showcased, there is a focus on how to embed the benefits of the pilot in order to achieve sustainability.

4. Proof-of-Concept Funding: Unlocking Growth

Universities have proven themselves to be proactive engines of growth and across the country there has been great progress in bringing dedicated capital to the table at scale. However, a further funding commitment is needed from government to fully leverage the billions of annual public investment in R&D.

Some universities have been able to unlock POC funding through the return from successful spinouts, for instance the UCL Business £7.5m POC fund. Having access to this funding has had an immediate impact, with the number of spinouts doubling over the last year. The contrast with the Belgium funding landscape was highlighted. The Flemish Government provides nearly €45m per year to be distributed around five Flemish universities, with KU Leuven alone receiving €20m per year. This signals to academics that the country takes this seriously and over the long term results in academics engaged with the needs of industry, rather than focusing solely on accessing research funding.

5. Delivering a Growth Agenda

Dr Diarmuid O'Brien, Pro Vice Chancellor for Innovation, University of Cambridge gave a call to action to build on the existing strengths of UK research:

· In the context of the government’s new Industrial Strategy, it will be more important than ever for government to give universities a seat at the table and put research at the heart of the innovation ecosystem. Universities have a powerful convening role and the potential to elevate innovation ecosystems, with innovation districts and campuses transforming the role that universities play within cities.

· More collaboration is needed across government. The One Year One Mission event demonstrates the value of collaboration within the sector, but we are not witnessing the same level of collaboration across government. An ambitious vision will need to ensure that there are the right drivers in place across government to achieve growth at scale.

· Greater porosity between universities, industry and investors is needed. The US provides much more opportunity to move in and out of university and industry, which creates a much richer environment. Porosity is at the heart of what successful innovation districts around the world are doing.

In his closing remarks Tim Haines, Chair of TenU and Executive Partner, Abingworth encouraged attendees to take pride in what is being achieved. The dynamism within the UK is fantastic, with all the ingredients for success present and TTOs catalysing this revolution. Now the focus needs to be on supporting the measures that will drive the biggest impact.