The University of Aberdeen is to take a new approach to fostering spinout culture by reducing its equity stake in an attempt to increase innovation and accelerate the commercialisation of intellectual property.

The move makes Aberdeen one of the first universities in Scotland and the UK to introduce key recommendations from a recent independent review of university spinouts that was commissioned by HM Treasury.

Under the new policy, the University’s equity share in new businesses could be as low as 5%, compared to the previous 21% minimum rate.

Future equity arrangements will take a sector-specific approach that takes into consideration the University’s investment in the underpinning research, as well as the nature and extent of the intellectual property.

“The University of Aberdeen has an excellent track record and reputation for life sciences spinouts with firms such as Elasmogen, TauRx and NCIMB in our portfolio,” said Professor Peter Edwards, the University’s vice-principal for regional engagement. 

“We want to replicate this success across other sectors from green energy to digital technology and, in producing a more nuanced approach, we will be able to provide clarity for founders and improved opportunities for investors which we believe will stimulate future growth and development.”

The new policy is just one element within a broader plan being implemented to support new company creation and economic growth, which also includes changes to academic promotion criteria to recognise commercialisation of research, and involvement in initiatives like the ICURe Discover North East programme.

The Scottish Government has also set out its own recommendations for fostering spinout culture, with the publication last summer of a ‘Entrepreneurial Campus Blueprint’. 

These plans set out a number of key actions Scottish universities are being encouraged to take, which also include reducing equity stakes to around 5-10%, as well as setting royalties at rates that ensure spinout revenues are being used for rapid growth rather than paying debt, and providing more support, education and mentorship for spinout founders.

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Professor Ross Tuffee, co-author of the blueprint, said: “The University of Aberdeen is taking a clear position in creating the conditions for more spinouts to be established, to grow and succeed.”

“Taking a transparent and open approach including equity stakes that are practical and workable outside of the institution is a huge step forward.”

Recent figures show annual spinout investment quadrupling over 10 years, rising from £514 million in 2014 to an estimated £2.3 billion in 2024, with Scotland accounting for almost one-fifth of all UK equity deals involving university spinouts in 2023.