Dr Joe Marshall, Chief Executive of the National Centre for Universities and Business (NCUB), said: “The review rightly underscores the importance of university spin-outs as one of several ways in which university research can be commercialised. The scale and success of university spin-outs has grown considerably in recent years, with UK university spin-out investment increasing five-fold from £1.06 billion in 2014 to £5.3 billion in 2021. This is hugely positive for UK economic growth and its competitiveness as an innovation nation.

“However, the review sounds an important warning. Supporting and delivering spin-outs can be costly for universities and is often under-funded, particularly outside of England. While spin-outs can infrequently contribute financially to a university, such occurrences remain relatively uncommon and an inherently unreliable revenue source. It is imperative to acknowledge costs associated with spin out creation, ensuring it does not become a net cost to our universities.”