Oxford’s example ‘could generate massive boost to regional spin-outs’
20 Sep 2025
An extra £15 billion in funding for UK university spin-outs over the next decade could generate nearly twice that figure in co-investments and create thousands of life science and related jobs, claims a new report.
The Bridging the Capital Gap for UK Research Commercialisation report, commissioned by Pioneer Group and The Crown Estate from Henham Strategy, says this could lead to the creation of a further 1700 spinouts and provide employment for 56,000 people.
However, it criticised too the disproportionate concentration of investment in life sciences’ ‘golden triangle’ of Oxford, Cambridge and London.
It called on underinvested regions to replicate the work of Oxford Science Enterprises, the venture capital firm operating in partnership with the university.
Pioneer Group executive director Toby Reid highlighted the discrepancy between investment inside and outside the triangle.
“Despite universities across the UK demonstrating strong research power, 85.2% of all spinout venture capital raised since 2010 was in the Golden Triangle. Yet it only produced 31% of the research in the UK,” he said.
“This demonstrates the pressing need to ensure we maximise the commercial potential of research flowing from regions up and down the country.”
He added that the global significance of UK universities with 17 featured among the world’s top 100 in the world top 100, including four in the top 10 represented a huge economic potential being unrealised due to capital constraints and strong regional disparities.
The report claimed that after 10 years of investment, funds could produce a self-sustaining ongoing investment of “between £1 billion and £2 billion annually, attracting between £2bn to £6bn yearly.
And it cited recent government pension initiatives including the Mansion House Accord and Local Government Pension Scheme reforms as opportunities for securing reliable funding.
Crown Estate head of innovation Matt Mason said: “This report reveals a £15 billion investment opportunity for early-stage technology commercialisation, which could unlock more than 1,700 spin-outs, create more the 50,000 jobs and deliver investor returns of up to £320 billion.
Pic: Shutterstock (Ivan Marc)
