The UK government is investing £30 million to supercharge UK university spinouts across four regional hubs. This bold move aims to reduce the long-standing dominance of the London-Oxford-Cambridge “golden triangle” and open up new innovation corridors across the country. The funding targets areas with untapped research talent and growing tech potential.
For too long, cutting-edge research from universities hasn’t translated into thriving businesses outside the South East. This initiative is set to change that.
Targeted Regional Support to Accelerate Spinout Growth
The £30 million will support four regional clusters, each with its own innovation focus:
In the North East, the SCENE project will receive over £8 million. Durham and Newcastle universities are central to the effort, which brings together researchers, businesses, and investors to help research reach market faster.
In the Midlands, nearly £10 million will go toward solving talent shortages. Led by Aston University in Birmingham, the project will create an expert talent pool and invest in sectors like advanced manufacturing, health tech, digital, and net zero.
Merseyside’s BRITE cluster has secured over £4 million. It’s focused on building a strong life sciences ecosystem to develop treatments and vaccines. Liverpool University is a key partner, working with industry and civic leaders.
ACE, based in Lincolnshire and East Anglia, will get almost £5 million. This cluster will become a hub for agri-tech innovation. Backers include Barclays Eagle Labs, local LEPs, and the Cambridgeshire & Peterborough Combined Authority.
Each cluster is designed to turn world-class research into real-world impact.
Why UK University Spinouts Are Key to Economic Growth
UK university spinouts are companies formed from university research. They turn academic breakthroughs into businesses that create jobs, attract investment, and solve real-world problems. These spinouts are becoming a core part of the UK’s innovation engine.
According to the Royal Academy of Engineering’s latest report, university spinouts raised over £2.6 billion in 2024—a 40% jump from the previous year. Since 2014, investment in spinouts has grown from £1 billion to £5.3 billion, making the UK a global leader, second only to the US.
However, there’s a catch. Spinouts in the golden triangle are far more likely to attract equity investment. About 53% of them raise outside capital, compared to only 40% of those based elsewhere. After eight years, spinouts from the golden triangle typically raise £5.7 million. Others raise only £1.4 million on average.
That’s the imbalance this investment hopes to fix.
Breaking Down Barriers to Spinout Success
Funding isn’t the only hurdle. Many regions also lack access to experienced talent, investor networks, and spinout-friendly university policies. Without these, turning research into business becomes an uphill battle.
Another challenge is university ownership. In 2024, universities held an average 16.1% equity stake in their spinouts—down from 21.5% in 2023. But policies vary widely. Cambridge usually takes around 8.8%, while Leeds holds over 42%.
These differences can either motivate or discourage founders. The new funding program encourages more founder-friendly, flexible models across all regions.
Going Beyond Academia: Public Sector Innovation Joins In
The government isn’t stopping at universities. A new guide will help public sector organisations spin out their own research too. The Knowledge Asset Spinouts Guide explains how public bodies can commercialise ideas, create jobs, and support local economies.
This shift means hospitals, labs, and public institutions could soon join the spinout movement.
A Promising Future for Spinout Investment
Despite recent global uncertainty, UK university spinouts are showing resilience. In the first half of 2024 alone, they raised £1 billion. Leading sectors include software, biotech, medical devices, and pharma—areas where the UK already has deep expertise.
The £30 million investment isn’t just a cash injection. It’s a signal that spinouts matter—and that innovation can thrive anywhere in the UK, not just in the South.
If these regional hubs succeed, they could spark a new wave of startups that reflect the full diversity of UK research. The goal is clear: create high-impact companies, spread opportunity, and make the UK a true global innovation leader.
