As part of its Entrepreneurial Impact Report 2023 — in addition to underscoring the evolution of the spinout ecosystem and the current challenges that it faces — Octopus Ventures has ranked universities based on a series of key factors.

These factors include the number of patents, spinouts created, disclosures, and the subsequent financial transactions associated with exits. The data that underpins the rankings was sourced from the Higher Education Statistics Agency.

The University of Dundee secured top place due to its “incredibly high” average exit value for its spinout companies, not least bolstered by Exscientia — the biotech company using AI to support drug discovery — which in 2021 floated on the US NASDAQ at a valuation of $2.9 billion (£2.2b), and raised $510m (around £406m) in its IPO alongside private placement. Dundee emerged as the leader after ranking fifth place in Octopus Ventures’ previous report from 2020.

Alongside Dundee, other universities from across Scotland ranked prominently, with Edinburgh Napier coming in at tenth place, after ranking 42nd place in the 2020 rankings. The University of Aberdeen came in 15th place (from 13th place in 2020), the University of Strathclyde 17th place (23rd place in 2020), the University of Glasgow 18th place (21st place in 2020), and the University of St Andrews 21st place.

The latest report also shows that 60% of the top ten ranked universities are outwith the Golden Triangle of London, Oxford, and Cambridge. Queen’s University Belfast ranked second, Cardiff University fourth, the University of Leeds eighth, and the University of Nottingham ninth, in addition to Dundee and Edinburgh Napier which came first and tenth respectively.

On this, Octopus Ventures state that it “highlights that the academic strengths needed for deep tech success stories are distributed across the UK,” and that it “shows the potential for deep tech innovation to form part of the broader levelling up agenda, by harnessing local pockets of excellence to help the whole of the UK flourish through high value job creation and economic growth.”

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While excellence outside the Golden Triangle is cause for celebration — as is the growing number of spinout exits, and increases in research funding from both the private and public sector — there are also causes for concern. The report highlights a shortfall in talent and a lack of lab space and infrastructure across the UK as some of the various pressing issues universities and spinouts face.

To ensure the continued success of the UK spinout ecosystem, Octopus Ventures suggests that what’s needed “is a continuous and best-in-class support structure. That includes a consistent government strategy, fair regulatory environments, sufficient research and translational funding, support for technology transfer offices, and a willing investor base.”