Three Scottish universities have ranked among the top 20 in a new study measuring the success of spinout companies from UK academic institutions.

The Universities of Edinburgh (8th), Strathclyde (16th) and Glasgow (19th) all scored among the UK’s top institutions by total number of spinouts, according to the Royal Academy of Engineering’s fifth annual Spotlight on Spinouts research.

Among the wider list of forty-two were also the University of Aberdeen (26th), Heriot-Watt (27th), Dundee University (28th), and the University of St Andrews (36th).

The study found that 53% of UK spinouts come from just ten institutions, with Oxford University coming out top and Cambridge University experiencing the largest growth of 17% year-on-year.  

Among those in Scotland, the University of Edinburgh’s spinout track record was found to be particularly strong, having fostered seventy-one new firms, compared to Strathclyde’s forty-four and Glasgow University’s forty.

According to the Royal Academy of Engineering’s report, overall Scotland has the third-highest concentration of spinouts in the UK hosting 12% of the UK’s spinout population (243), coming behind only London with 19% (384), and the South East of England with 16% (321).

Although Oxford remains the most popular HQ for new firms, being home to 110 spinouts, Edinburgh comes a fairly close second, with 86 spinouts based in the region.

The study also delves into the wider equity market for UK spinouts, with the data showing a trend in universities now reducing their equity stakes in associated spinout companies.

In 2024 the average university equity stake was 16%, down sharply from 22% in 2023, with lower equity stakes being identified as key to incentivising academic founders to launch and scale their spinout companies.

The report’s companion paper UK spinouts – a status update shows that over fifty universities are aligning on the issue, but varied practices are still in place, with the Academy recommending that a more equitable distribution of equity between key contributors, including the university, senior faculty and spinout leadership, is needed to grow commercial success.

“It’s encouraging to note that average university equity stakes are now at a decade low of 16% and are moving towards the recent recommendations from the Independent Review of University Spinout Companies,” said Paul Taylor, Royal Academy of Engineering Enterprise Committee chair.

“Tracking this progress will help us to understand how it will impact the founders we support, as well as how we will continue our independent contribution to the policy landscape.”

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Unsurprisingly, artificial intelligence remains the top emerging sector for spinouts, accounting for 214 new firms, up from 184 in the previous edition of the Academy’s report, followed by software-as-a-service (SaaS) ranking second with 180 spinouts, and cleantech, with 169.

Overall, however, the life sciences and pharmaceutical sectors remain the strongest areas for new firms, with some 399 life science spinouts having been created as of January 2025, followed by 282 spinouts working within data provision and analysis.