The UK government is now focusing on turning university research into real businesses that can create jobs and support economic growth. This effort is especially important in fields like science, medicine, and technology. According to the latest Daily news highlights, there has been a major change over the last 30 years in how universities and researchers think about commercialising their ideas.
Big Changes in UK University Research
- More academics want to commercialise their research:
At University College London Business (UCLB), there was a 24% increase last year in the number of researchers looking to turn their ideas into businesses. This shows that more people in universities now understand how their work can help society and the economy. - Government support is growing:
In 2024, the Labour Party included university spin-outs in its growth plans. Chancellor Rachel Reeves later announced big investments in research and innovation, including: - A £2 billion AI action plan
- More money for research and development (R&D)
- A major increase in the British Business Bank’s investment fund, which supports university spin-outs
These government actions show a serious push to support innovation and help new businesses grow from university research.
What Are Spin-Outs and Why Do They Matter?
Spin-outs are companies created from university research. They help bring new inventions and technologies to the public. According to the latest register from HESA, there are now 2,269 spin-out companies in the UK. For the first time, life sciences (like medical research) created more spin-outs than engineering or physical sciences.
However, there’s also a challenge. Even though spin-outs are growing, early-stage investment is falling. Without enough money, it’s hard for these companies to succeed.
Real Success Stories – And Big Challenges
One great example is Autolus Therapeutics, a UCL spin-out from 2014. It focuses on personalised cancer treatment and now employs 450 people in Stevenage. But it took more than 10 years for its treatment to get approved, and it’s still waiting to be accepted by the NHS.
In the past five years, UCL’s spin-out companies have:
- Created almost 2,500 jobs
- Attracted over £3 billion in outside investment
These results show what can happen when there is strong support for university entrepreneurs.
What Needs to Happen Next?
- More investor confidence is needed:
Many UK investors are still nervous about supporting spin-outs, especially in later funding stages. This often forces UK companies to look to the United States for funding. For example: - Oriole Networks raised $35 million for its data technology.
- Trace Neuroscience secured $101 million for a new treatment for motor neurone disease.
- UCL’s own Technology Funds have helped a lot:
These funds have attracted over £120 million and already invested more than £81.5 million. Plans are in place to create a much larger fund to continue this work.
Building a Better Ecosystem
To keep this momentum, everyone must work together — universities, local governments, funding bodies, and private investors. The government’s increased R&D spending and plans like the £410 million Local Innovation Partnership Fund are steps in the right direction.
Collaboration is key. When researchers, investors, and companies team up, they can revive local communities, bring new job opportunities, and improve living standards.
The UK is now taking serious steps to support innovation and commercialise university research. With the right funding and teamwork, spin-outs can bring real change by creating jobs, improving healthcare, and boosting local economies.
This is more than just policy—it’s about building a better future. That’s why it’s important to turn this support into action and help the next generation of UK spin-outs succeed.
