UK unleashes £30M to power regional university spinouts and boost tech innovation

The UK government hasannounceda £30 million investment to support university spinouts across four regional research hubs. The initiative aims to accelerate tech growth and innovation outside the traditional “golden triangle” of London, Oxford, and Cambridge. This strategic effort seeks to unlock the economic potential of academic research while addressing regional imbalances in the UK’s innovation ecosystem.
The £30 million package will support four regional clusters, each with distinct focus areas and development timelines:
SCENE in the North East of England will receive over £8 million over five years. This initiative will enhance the local ecosystem by engaging businesses, sector organisations, Catapults, and investors in commercialising university research. Durham and Newcastle universities are key participants in this effort.
The Midlands hub will receive nearly £10 million over five years to address talent, expertise, and skills shortages. The project will create a Talent Pool, appoint investment champions, and build innovation networks in the Health, Advanced Manufacturing, Net Zero, and Creative and digital sectors. Aston University in Birmingham, where Science Minister Lord Vallance launched the initiative, leads this program.
BRITE in Merseyside will receive over £4 million over three years to build a sustainable life sciences ecosystem for developing treatments, including vaccines. The initiative aims to bridge product development, scaling, and commercialisation gaps through collaboration between academic institutions, industry representatives, and civic partners.Liverpool University is among the participating institutions.
ACE, spanning Lincolnshire and East Anglia, will receive almost £5 million over three years to establish a leading Agri-Tech research commercialisation cluster. This initiative has support from Barclays Eagle Labs, Greater Lincolnshire LEP, New Anglia LEP, Cambridgeshire & Peterborough Combined Authority, and commercial partners.
University spinouts provide a vital pathway for transforming academic research into commercial enterprises with real-world impact. These companies, built on university-generated intellectual property, are increasingly central to the UK’s innovation ecosystem.
The Royal Academy of Engineering’s “Spotlight on Spinouts 2025” reporttrackedUK university spinouts securing over £2.6 billion in funding, nearly 40% more than the previous year. Investment in university spinouts has grown remarkably from £1.06 billion in 2014 to £5.3 billion in 2021, placing the UK second only to the US in this field.
Despite overall growth, significant regional disparities persist in the spinout ecosystem. The “golden triangle” of London, Oxford, and Cambridge dominates the landscape. Spinouts outside this area areless likely to access equity capital, with only 40% raising external equity compared to 53% within the golden triangle. By year eight, the median golden triangle spinout raises £5.7 million, while those elsewhere typically raise just £1.4 million.
The government’s investment addresses key challenges hampering spinout growth outside the golden triangle. Bureaucracy, talent shortages, and limited funding access prevent innovators from developing viable, growing businesses. These challenges are especially severe in regions lacking established financial ecosystems.
University ownership in spinouts has evolved significantly. In 2024, UK universities averaged a 16.1% stake in their spinouts, down from 21.5% in 2023 and 27.6% in 2017. Institutional variations are substantial — the University of Cambridge typicallytakesan 8.8% stake, while the University of Leeds takes 42.9%.
Beyond university spinouts, the government has expanded its focus to the broader public sector innovation landscape:
Alongside the £30 million investment, the government has introduced new guidance to help public sector organisations commercialise research. This initiative aims to advance innovative ideas and foster new businesses from the UK’s public sector research.
The Knowledge Asset Spinouts Guide provides detailed guidance on creating spinouts from intellectual property for public sector bodies (PSBs). The guide emphasises how spinouts can create high-quality jobs, attract investment, and energise local economies.
This £30 million boost for regional spinouts forms part of a broader strategy to leverage UK research capabilities for economic growth. Spinouts drive wealth creation in the UK economy by generating quality jobs and attracting investment. The four funded projects will nurture and scale new spinout companies across life sciences, agri-tech, advanced manufacturing, net zero, and digital industries.
Spinout investment shows promising recovery, with £1 billion raised in the first half of 2024. Leading sectors for equity deals include application software, pharmaceuticals, biotechnology, and medical devices.
The UK government’s £30 million investment in regional university spinouts represents a strategic push to address regional disparities while harnessing academic research’s economic potential. The initiative aims to create a more diverse and resilient spinout environment across the UK by supporting four major regional hubs and providing public sector commercialisation guidance.
Success will depend on effectively addressing funding access, talent development, and ecosystem support beyond the golden triangle. With university spinouts showing resilience compared to other equity-backed ventures, these targeted investments could strengthen the UK’s position as a global innovation leader while ensuring more equitable distribution of economic benefits nationwide.