Oxford University and technology transfer partners back Government’s ambition to boost spinout growth
19th November 2024
Oxford University and Oxford University Innovation joined founders, investors and other universities to throw their weight behind the Government’s bid to boost growth by converting more of the UK’s world-leading research into successful companies.
• Government Manifesto, Industrial Strategy and Budget all emphasise importance of creating university spinouts for economic growth.
• Universities, founders, and investors want to see a new generation of spinouts flourish – and see spinout review recommendations implemented across 49 UK universities.
• Event to show progress one year on from government commissioned Independent Review of Spinouts includes Oxford University and Oxford University Innovation’s support across multiple recommendations.
Oxford University and Oxford University Innovation (OUI) join founders, investors and other universities to throw their weight behind the Government’s bid to boost growth by converting more of the UK’s world-leading research into successful companies.
The Government has repeatedly – in its Manifesto, Industrial Strategy, Budget and most recently the Chancellor’s Mansion House speech – committed to creating more spinouts, companies formed from university breakthroughs.
Oxford University’s spinout ecosystem is at the forefront of global innovation and, along with other leading UK Universities, creates globally competitive companies, which together raised £1.66bn in equity funding in 2023 (9.5% of equity raised by UK companies), according to the Government’s industrial strategy.
Notable successes include Mirobio, a biotech spinout founded by Oxford Professors Simon Davis and Richard Cornall, which targets therapeutics for inflammatory diseases. With crucial support from investor partners, and the team at Oxford University Innovation, Mirobio raised $34m in 2019 and was acquired by Gilead Sciences for $405m in 2022, illustrating the impact of nurturing high-potential spinouts from the university’s world-leading research base.
In 2023 the Independent Review of Spinouts looked at the most successful spin-out ecosystems internationally, and in the UK, to identify best practices to support spinouts to generate greater investment and grow faster in the UK.
Oxford University and Oxford University Innovation is backing the Government’s ambition to build a thriving, UK-wide spinout ecosystem by implementing the recommendations of the independent spinout review – including working to increase the amount of proof-of-concept funding available to early phase companies.
The call is backed by the reports’ authors, Professor Irene Tracey CBE, FRS, FMedSci., Vice-Chancellor of the University of Oxford and Dr Andrew Williamson, Managing Partner of Cambridge Innovation Capital.
Both will be speaking at the report anniversary event alongside Tim Haines, Executive Partner at Abingworth and Chair of TenU and Professor Dame Jessica Corner, Executive Chair of Research England.
Over the last 12 months universities, founders and investors have aligned behind the recommendations of the review and, working with Research England and the Government, have made progress in implementing them.
The Spinout Review recommended adoption of the USIT guides, including a proposed a blue-print for spinout deals. The guides include proposed founder-friendly equity stakes that speed up and simplify the process of setting up a spinout. In September, Research England said 39 universities had adopted the best practice approach.
- Analysis shows that the average amount of university equity in spinout businesses has been declining over time.
• More and more universities are collaborating with each other together with industry and investors to create innovation ecosystems. Research England is providing over £4.7 million across 13 successful collaborations bringing together 49 different higher education providers.
• The report also recommended an increase in proof-of-concept funding, which allows academic inventors to test and demonstrate the viability of their ideas as marketable technologies. At the Budget the U.K. Government announced £40m over five years in proof-of-concept funding. Leading universities have described this as a welcome move but argue that going further could increase the number of successful spinouts (see below).
• TenU TTO partners will be leading discussions with the sector and government to underline the importance of POC funding to attract domestic and foreign direct investment and optimise implementation of proof-of-concept funding across the country to make sure it is deployed in the most cost-efficient way.
Professor Irene Tracey CBE, FRS, FMedSci., Vice-Chancellor, University of Oxford, said: “As the UK’s research base continues to drive global solutions to grand challenges, it is critical that we provide the right support to ensure that these innovations scale and reach their full potential whether in life and physical sciences or creative industries, building on the U.K.’s known excellence in humanities and social sciences as well as in bioscience and deep tech. At Oxford, we are proud to be at the forefront of this mission, turning groundbreaking research into 10 spinouts in the last 12 months alone, each one not only growing our economy but also improving lives and our planet.
Mairi Gibbs, CEO, Oxford University Innovation, said: “At Oxford University Innovation, we see firsthand the transformative power of academic research when it is given the opportunity to thrive in the marketplace.
“Spinouts are not just about creating successful companies, they are also about ensuring that breakthrough science and technology contribute to solving some of the world’s most pressing challenges. Our role to support these ventures is vital, and we are committed to fostering an environment where innovation and investments can flourish and make a measurable impact.”
Read OUI’s latest report: Shaping the Future: Oxford’s Innovation Impact.
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