Durham University welcomes the publication of a new UK Research and Innovation (UKRI) report examining how the UK can better support university spin-out and start-up businesses to thrive and grow.
This independent review by Tony Hickson (Chief Business Officer at Cancer Research UK) on deepening university-investor links in the UK, was commissioned by Research England. It acknowledges the key and growing role of University spin-outs to the delivery of the industrial strategy, by raising investment and growing clusters and jobs.
The report explores the relationship between universities and investors, and makes recommendations to enhance the UK's already strong innovation ecosystem.
Durham's contribution to the UKRI report
Richard Baker, Durham University Director of Economic Development and Commercialisation, who gave evidence to the report, commented:
"This report provides a thorough and well evidenced health check on the state of the University spin out sector, which is contributing strongly to the UK economy.
"It could do even more if the practical steps it lays out were followed through, in particular around building a stronger commercialisation eco-system and addressing access to early stage finance.
"In the North East of England, we are strongly committed to continuing to strengthen our support for spin out creation and growth and for embedding this impact into our regional economy."
Key findings from the review
The report highlights that the UK punches above its weight internationally, hosting Europe's leading start-up ecosystem and ranking second only to the United States for value generated from university spin-outs.
It highlights how the spin out production rates are generally healthy, supported by leading practice in supporting the spin-out pipeline including the collaborative Northern Accelerator programme which includes Durham, Newcastle, Northumbria, Sunderland and Teesside Universities.
It also identifies some challenges that must be addressed to maintain global competitiveness.
These include gaps in early-stage and scale-up funding, uneven access to investment across regions, and cultural mismatch between universities and investors.
The review notes that while universities excel at nurturing early-stage, high-risk ideas, investors typically seek more stable and less risky opportunities.
To address these issues, the report makes 20 recommendations aimed at universities, funders, investors and policymakers, calling for a more connected and system-wide approach.
Report recommendations
Among the key proposals are calls to significantly expand proof-of-concept and pre-seed funding, improve the visibility and continuity of funding pathways, and accelerate spin-out formation processes.
It highlights novel approaches to support these objectives in regions like the North East, but calls for stronger support from national agencies.
The report also recommends embedding entrepreneurship more firmly within academic career pathways, alongside strengthening institutional support and commercial expertise.
It further highlights the need to unlock new sources of capital, including pension funds, and to align innovation support with regional strengths so that opportunity is spread across the UK.
Our commitment to innovation and business
Durham University support the report's emphasis on collaboration, national support, regional impact, and long-term vision.
We have a strong track record in commercialisation and entrepreneurship, working closely with partners to translate world-class research into real-world impact, economic growth and societal benefit.
The Northern Accelerator partnership, involving Durham and other regional universities, has significantly boosted the number of spin-out businesses over the past eight years. This collaboration has attracted increased investment and is now recognised as a leading-edge partnership in this area which continues to innovate in its support for commercialisation. The announcement of the SCENE (Strategic Commercialisation Ecosystem North East) programme last year, will be followed by further joint action in 2026.
Durham is also part of Universities for North East England (UNEE), which, with the universities of Newcastle, Northumbria, Sunderland, Teesside is working with industry in the UK and internationally to promote the region as an attractive place to invest in business, infrastructure and innovation.
The report findings align closely with our ongoing commitment to supporting researchers and students to engage with enterprise, and to contributing to a vibrant, inclusive innovation ecosystem across the North East of England and beyond.
UKRI has confirmed it will now develop a long-term vision structured around seven key themes to take the report's recommendations forward, bringing partners together from the sector including exploring options to expand early-stage funding.
Rusell Group response
Adam Crozier, Policy Manager (Innovation) at the Russell Group, said: "It's encouraging to see today's report celebrating so many strengths of the UK's innovation ecosystem, and correcting some of the misconceptions about our ability to commercialise research breakthroughs effectively. Together, universities, funding bodies and private investors have driven a significant shift to a more entrepreneurial culture in R&D. It's being recognised by government as an important driver of jobs and economic growth.
"Of course, there's always more to be done. Particularly important are the report's recommendations on directing capital to early-stage and scale-up funding gaps, ensuring new ventures spin out at the right pace to maximise success, and supporting both academics and investors alike to better understand commercialisation opportunities. Improvements like these, driven collectively by the whole sector, could boost the scale and ambition of the UK's innovation economy."
