New report is ‘clear evidence of Scotland’s world-class ability to turn research into spinout innovation success’
A new report highlighting the role of Scottish universities in the success of life sciences and MedTech spinouts is ‘a clear illustration of our world-class capability in turning research into innovation,’ insists one of the country’s healthcare innovation leaders.
Spotlight on Spinouts – produced by the Royal Academy of Engineering and underpinned by data from Dealroom – found that four universities from Scotland feature in the UK’s top 20 for spinout value creation.
Leading healthcare innovation body InnoScot Health believes the sixth annual report showcases “an extremely positive picture of Scottish activity which defines a clear position of strength to build on”.
According to findings, the University of Dundee sits in 6th place nationally – making it the top university in Scotland and also outside of England – owing in part to the spinout success of Exscientia, an AI-driven drug discovery company which netted the university some £40m after selling the majority of its shares.
The University of Edinburgh, University of Glasgow and University of Strathclyde also feature in the top 14 – in 10th, 13th and 14th places respectively.
Biotech and pharma is reported to be the largest sector for spinouts from UK universities with 278 venture capital-backed companies spun out since 2010 in these industries, worth over £20.7bn. Medical devices is the next most successful sector, with 110 venture capital-backed spinouts since 2010, worth a combined £4.2bn.
According to the Royal Academy of Engineering, the ‘Golden Triangle’ of UK universities (Oxford, Cambridge, and London) has historically dominated the nation's academic spinouts, accounting for a disproportionate share of total equity investment and value creation.
However, InnoScot Health notes that the broader UK spinout ecosystem continues to mature and expand geographically with Scotland making clear gains – and Scottish Enterprise Growth Investments now standing as the third most active investor in UK spinouts by deal count since 2020.
Particularly encouraging, InnoScot Health says, is central Scotland being considered a “hotspot” for the country’s innovation ecosystem, according to the report’s authors.
Executive Chair of InnoScot Health, Graham Watson said: “It is very pleasing to see some of Scotland’s leading universities performing so well in this vital area and helping to shape a more geographically diverse picture of success.
“The ability to commercialise intellectual property (IP) developed from academic research has never been more important to the economy, and to collaborative healthcare innovation across NHS, industry, and academia for improved patient outcomes.
“A broader range of universities generating significant value outside of the Golden Triangle can only be a good thing for successfully transferring ideas from academic research into commercial products, processes, and services which reach more people.
“That is instrumental in addressing some of society’s most pressing challenges with Spotlight on Spinouts providing a clear illustration of Scotland’s world-class capability in turning research into valuable life sciences and MedTech innovation.”
The innovation landscape has evolved over the past six years, the report notes, and InnoScot Health agrees that “spinouts have remained on a clear trajectory of growth. They are now more visible as a distinct and essential component of the UK’s innovation economy, warranting sustained attention from across the ecosystem”.
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