Number of UK spin-outs continues to fall

Spin-outs remain in decline in the UK, yet British universities’ contribution to the UK economy is on the rise, according to a recent report.  

Data for the 2011-12 academic year showed roughly 4% growth rate in what UK institutions contribute to the economy, rising from £3.3bn ($5bn) in 2010-11 to £3.4bn. Income from intellectual property rose too, from £69m to £79m, with over £10m coming from the sale of shares in spin-off firms.

At the same time, there has been a drop in the number of new spin-off firms, falling from 268 in 2010-11 to 191 in 2011-12, with the number of those surviving for three years or longer marginally increasing from 997 to 998.

The findings were published in Higher Education Funding Council for England’s (HEFCE) annual Higher Education – Business and Community Interaction Survey. HEFCE suggested in its report that UK institutions are waiting for investment conditions to improve, and are holding back on the sale of technologies. It also said that increased survival rates showed that UK institutions were becoming better at commercialisation.

David Willetts, UK minister for universities and science, said: “This report shows clearly that our universities are drivers of growth, contributing £3.4 billion a year to the economy through services to business. There is also a big boost for SMEs, which gain a competitive advantage through their links with institutions. Our world-class universities are great at developing entrepreneurial talent and this is reflected in the growth in new start-up businesses and spin-out companies. They are well placed to compete in the global race and make an even bigger contribution to the economy.”