A year on: the Spinout Review marked a tipping point, but there’s more to be done

Spinouts represent the bridge between groundbreaking research and real-world impact, generating jobs, driving economic growth, and transforming lives. This week marks a year since the Spinout Review, and it seems this message is getting heard in the right places, says UCLB CEO Anne Lane. 

The launch of the Spinout Review might have been particularly close to UCLB’s heart given its chosen location: at UCL East. It was, however, a landmark moment for the entire tech transfer industry. 

The government would go on to place spinouts at the heart of its growth agenda. Labour’s recent manifesto, industrial strategy, and now the Budget have all demonstrated a clear commitment to converting research and innovation into flourishing businesses that grow our economy.  

Spinouts are the UK’s innovation engines, and with innovation comes growth. In the past decade, UCL spinouts alone have drawn in £3bn in investment, showcasing their immense value. The Budget’s latest £40m investment in Proof-of-Concept funding provided nascent science and technology-based ventures with a crucial early boost, helping them reach milestones and attract vital investment.

Early-stage funding is only one piece of the puzzle however. To truly thrive, spinouts need a step-change in investment that allows them to grow and sustain their impact, transforming promising ideas into powerful, real-world solutions. The Chancellor’s support for early development phases represents a key step. But the next priority must be to facilitate larger investments in these transformative projects.

   

The government’s new industrial strategy, Invest 2035, highlights key growth sectors like life sciences and clean energy – sectors where spinouts are already making groundbreaking breakthroughs.

Spinouts aren’t just academic experiments; they are engines of real-world change. Spinouts are delivering solutions to the UK’s biggest challenges while also fuelling growth. Since 2014, 1,300 spinouts from 91 UK universities have generated more than £20bn in investments and created nearly 29,000 jobs.

CarbonRe, a UCLB spinout, is a prime example. Cement production is responsible for 8% of the world’s carbon emissions – CarbonRe  has developed an AI solution which optimises this high-energy industrial process to cut emissions by gigatonnes. Likewise, our spinouts are applying UCL innovations and research to have real-world impact in areas ranging from carbon-free energy sources to, AI applications improving efficiency in the NHS, and clincally proven drama workshops for families to improve eating habits and reduce childhood obesity . 

These businesses are also generating jobs and growth. Autolus, for example, has attracted over $900m capital investment to develop pioneering immunotherapy cancer treatments. Developed at UCL’s Cancer Institute, Autolus’ first treatment for leukaemia has just received FDA approval in the U.S, with more approvals worldwide likely soon – offering new hope for patients with this devastating disease.  

With the UK government placing growth at the heart of its agenda and a world-class innovation ecosystem in place, the spotlight is rightfully on spinouts. But there is a key problem: we’ve yet to truly harness their full potential.

 

Last year, the independent review of spinouts, authored by Professor Irene Tracey and Dr. Andrew Williamson, identified the key issues holding them back: spinouts lack funding and the policy support needed to scale. Without committed government backing, many of these companies won’t reach their potential. 

The Mansion House Compact proposed enabling pension funds to invest in novel technologies. This would unlock billions in investment for spinouts, supporting innovation, growth, and jobs. This is exactly the type of transformative governance we need to see. 

There’s also been progress in cutting red tape through better categorisation. Universities and investors joined forces in May to boost the number of software spinouts from academic innovations by providing recommendations that will lead to faster deals with less friction and rapid upscaling. 

We’re doing more then, to ensure that spinouts can play a vital part in this government’s growth mission. Whether it’s upskilling academics to become the entrepreneurs of the next decade or grouping universities together in clusters to share expertise and best practice, we’re playing our part. But, to be truly transformative, we need support. 

The government has everything it needs to deliver necessary growth: world-class universities, strong financial markets, and a vibrant spinout ecosystem. By fully tapping into the potential of spinouts, we can drive growth, foster innovation, and make a real social impact. 

The independent spinout review from last year is filled with actionable ideas still waiting to be implemented. With the right support and investment, spinouts can transform the UK into a global leader in innovation.