THE University of Aberdeen is adopting a fresh strategy to boost its spin-out culture, which will see the institution reduce its equity stake while prioritising innovation and speeding up the process of commercialisation of intellectual property.
This strategy positions Aberdeen as a pioneer among Scottish and UK universities in implementing critical suggestions from a recent independent study on university spin-outs, which was funded by HM Treasury.
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As part of this new approach, the University’s ownership stake in new businesses could be as low as 5%, a significant reduction from the previous minimum requirement of 21%. Additionally, future ownership agreements will be tailored to each sector, taking into account the University’s investment in the foundational research and the scope or depth of the intellectual property.
Professor Peter Edwards, the University’s Vice-Principal for Regional Engagement, commented:
“An independent review commissioned by the UK Treasury looked at the most successful university spin-out ecosystems across the world and within the UK to identify best practice and opportunities to support spin-outs to attract greater investment and grow faster.
“The independent review reported criticism from spin-out founders that universities have been taking too great a share, with some taking 40% or even 50% equity, well above levels that investors would see as encouraging the level of investment needed to support the company and founders would consider fair. As a result, they have effectively been stifling these businesses’ ability to grow.
“The University of Aberdeen has an excellent track record and reputation for life sciences spin-outs with firms such as Elasmogen, TauRx and NCIMB in our portfolio. We want to replicate this success across other sectors from green energy to digital technology and, in producing a more nuanced approach, we will be able to provide clarity for founders and improved opportunities for investors which we believe will stimulate future growth and development.”
The updated policy is just a piece of a larger collection of actions the University is taking to encourage the formation of new businesses and boost the economy.
This includes adjustments to the rules for academic advancement to acknowledge the commercial use of scholarly work, to participation in projects such as the latest ICURe Discover North East initiative, where the University collaborated with Innovate UK, Opportunity North East, and The Helix Way. This initiative involved 10 groups of university innovators going through an eight-week course that provided them with essential knowledge of the market and skills in finding potential customers.
“Spin-outs are crucial to improving economic growth and they play a pivotal role in helping to solve some of the most pressing challenges facing society,” added Dr Heather Morgan, Dean for Enterprise & Innovation.
“They aren’t created overnight however and another of the areas we’ve been working hard to cultivate as part of this strategic review is our pre-spin-out pipeline. Understanding market interest and commercial potential is critical to transforming research and innovation into successful start-up businesses capable of maximising their impact and delivering tangible results.
“We want to encourage staff and students to feel supported and empowered to take the next step and investors to feel excited about the ideas and opportunities coming out of the University.”
