For those working to commercialise UK university research for the benefit of all, it¡¯s been quite a journey.

When I started my career in technology transfer 30 years ago, academics often needed persuading to commercialise their research. Today, it¡¯s a very different story; at UCL Business () we saw a 24 per cent increase in the number of UCL academics seeking to commercialise their research last year alone.

Things have also changed in Westminster. A few years ago, no one was talking about university spin-outs. Fast forward to 2024 and they were specifically mentioned in the Labour manifesto¡¯s discussion of how economic growth could be kick-started. And, when elected, the party wasted no time in increasing the national to support academics to refine the commercial potential of their research.

This week, in her spending review, chancellor Rachel Reeves said she was ¡°backing our innovators¡± with an increased R&D budget, a ?2 billion AI action plan and a two-thirds increase in the British Business Bank¡¯s investment fund ¨C a key source of investment in university spin-outs. The big question is how we translate this enthusiasm and these announcements into a spin-out boom that will create jobs, growth and positive impact in our everyday lives.

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The most recent , published by Hesa last week, shows there are 2,269 companies founded or owned by 100 UK higher education providers, with the creation of life sciences spin-outs overtaking those built on physical sciences and engineering research for the first time last year. But analysis ¨C reported in 51³Ô¹Ï ¨C suggests that the overall number has fallen, citing a decline in early-stage investment.

As one of the world¡¯s leading life sciences universities, we know how long the journey is and how much support is needed to get new innovations in therapeutics, medical devices and diagnostics to the point where patients can benefit.

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Take Autolus Therapeutics, a UCL spin-out established back in 2014 by academics including Martin Pule at UCL¡¯s Cancer Institute to bring to market ground-breaking ¡°personalised¡± immunotherapy for acute lymphoblastic leukaemia (ALL). Over 10 years later, it has established a global manufacturing centre in Stevenage that employs 450 people, but its treatment has only just received regulatory approval and we still await a decision on whether it will be available on the NHS.

UCL is third in the UK for the number of spin-outs it has created ¨C but it¡¯s the sustainable growth and real-world impact of those companies that counts. Collectively, they have created almost 2,500 jobs and attracted more than ?3 billion in external investment over the past five years.

The secret of that success is end-to-end support from UCL: from an entrepreneurial culture, protecting IP and providing early-stage proof-of-concept funding to investing in high-growth businesses through our , established with venture capital partners.

But we want to go ¡°further and faster¡±, as the chancellor might say. We brought together policymakers, spin-out founders and investors to discuss this challenge with Chi Onwurah, chair of the House of Commons Science, Innovation and Technology Select Committee. The big message was that if we are to build the next generation of high-growth businesses from university research, we need to strengthen the UK¡¯s innovation ecosystem.

I speak to academic founders of spin-out businesses every day. From learning the language of finance to testing and validating the market potential for an invention, the journey from research breakthrough to successful spin-out is fraught with challenges.

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Often the biggest challenge is securing investment. THE¡¯s recent article suggests that many UK investors are still reluctant to invest, especially in later-stage investment rounds, which are vital to scaling spin-outs. Our experience bears this out. I have seen positive change over time but UK investors are still too risk-averse in backing home-grown university companies.

Some of our recent successes illustrate the point: the $35 million (?26 million) Oriole Networks raised to bring to market its ¡°light powered¡± data processing technology, or Trace Neuroscience¡¯ $101 million?to clinically trial its novel treatment for motor neurone disease ¨C one of the largest early-stage (Series A) biopharma investments in recent years. Notice the dollar signs: all too often, I see spin-outs having to go to the US for that vital growth capital.

That¡¯s why we established our two Technology Funds, which have attracted more than ?120 million and committed over ?81.5 million to date, and it¡¯s why we¡¯re now looking at creating a significantly larger successor fund.

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But it¡¯s not just about investors. The government has a crucial role in building an ecosystem where commercialisation can thrive.

The spending review¡¯s uplift in R&D spending and the investment power of the British Business Bank are welcome. So are the measures to encourage institutional investors, such as pension funds.

At the same time, collaborations across research-led universities, funding bodies, industries and investors are game-changing. We already know that bringing together university researchers, investors and growing tech-driven businesses can transform and regenerate whole communities ¨C bringing new opportunities for young people, helping attract and retain high-value talent and fuelling sustainable growth and living standards. I¡¯m looking forward to hearing more about the ?410 million .

The government has put the UK¡¯s world-leading innovation at the heart of its growth mission. Turning that commitment into jobs, wealth and impact will require universities, investors, local authorities and funding bodies to work together to create the conditions for the next generation of UK spin-outs ¨C and the communities?in which they are based?¨C to thrive.

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is CEO of UCL Business, the commercialisation company of UCL.