Background

Scotland possesses world-class research capabilities across disciplines such as life sciences, AI/software, advanced manufacturing, and clean technology. However, this academic strength has not fully translated into a high-growth spin-out ecosystem. Key barriers include limited equity investment, institutional inertia, and insufficient supports for early-stage ventures. The Spin-Out Review was commissioned to highlight these challenges and provide a roadmap for improvement.

Our Approach

EKOS led a structured and comprehensive assessment to inform future policy and ecosystem enhancement:

• Literature Review – analysing existing studies and national strategies on innovation and spin-outs
• Stakeholder Engagement – carrying out around 100 interviews with university spin-outs, Technology Transfer Offices (TTOs), investors, and ecosystem actors
• Analytical Focus – assessing trends in spin-out creation, university equity practices, funding mechanisms, institutional incentives, and investment patterns

Key Findings

• Relative strength with room to grow: Scotland performs well in creating spin-outs compared to much of the UK, but lags behind the “Golden Triangle” of London, Oxford, and Cambridge, largely due to weaker investor infrastructure
• Concentration of activity: Most spin-outs originate from a small number of universities, particularly Edinburgh, Strathclyde, Glasgow, and Dundee, with smaller contributions from others
• Underwhelming Volume: Fewer than 10 spin-outs are created annually on average, signalling untapped potential across the wider university system
• Barriers to Growth: Cultural attitudes, limited institutional support, funding gaps, and lack of early commercial expertise were identified as the main barriers to growth

The review laid the groundwork for a coordinated strategy to strengthen Scotland’s spin-out ecosystem:

• Encourage more universities to adopt a strategic approach to commercialisation
• Adapt academic reward systems and culture to value entrepreneurship
• Expand access to translational funding and high-quality commercial advisory support
• Maintain reduced university equity stakes to incentivise founders and attract investors
• Improve connectivity with seed and venture investors to ensure Scottish spin-outs can scale

The link to the published final report can be found here.