Only by working together can we foster an ecosystem which allows new ideas to become new industries .

The announcement of an independent review of university spinouts, led by Professor Irene Tracy and Dr Andrew Williamson, could not come at a better moment.

From providing clean energy, to progressing ground-breaking AI, to researching novel therapeutics to aid the treatment of cancer, the UK is developing solutions to some of the greatest challenges facing humanity.

These solutions are being driven, not by large corporations, but by hundreds of smaller early-stage companies, which have been ‘spun-out’ of cutting-edge research in British universities.

But almost all of them now face a common problem. How to secure the long-term investment needed to grow and prosper in the UK?

The Independent Review has a chance to consider how we can overcome this, and I believe three key issues are vital.

First, how we can encourage more readily accessible finance to match the increasing demand from academics looking to commercialise innovative research. It’s important the review takes account of the kind of investment which early-stage, university incubated companies most need. This doesn't mean major banks or firms looking for rapid returns. Spinouts need long-term capital providers drawing on patient investors who believe in the impact their investments have. Thanks to our support, many of the companies we’ve backed are on the path to success. But this doesn’t just take capital, but sector knowledge and business expertise to help companies scale.

Second, how we can foster an ecosystem which helps founders commit their companies to the UK for the long-term and realise their full growth potential. With the announcement of a new review into the UK’s research and investment landscape, it's promising to see the Government talking about action to boost the attractiveness of the UK as a place to list and invest, and I hope the review considers the benefits of the proposed Edinburgh reforms. But to galvanize high-potential spin out we would hope to see recommendations for sector specific incentives, such as for deep-tech, which could encourage injections of international cash to compete yard for yard with the US.

Third, how we can reassure investors with a clear roadmap for the future. As the UK’s leading Enterprise Investment Scheme fund, a major step towards this would be the evergreening of the scheme. This would provide desperately desired clarity and certainty, for investors and founders alike.

I’ve got to know -dozens of founders over the last 14 years as the CEO of the UK’s largest investor in university spinouts, and it’s clear to me that the UK has no shortage of talented people looking to commercialise their breakthroughs.

But I have had several conversations recently with companies who all share the same dilemma. Should they head for greener pastures, like the US, with larger pools of long-term capital and a more growth-orientated R&D sector?

The UK’s universities are recognised around the world as producing some of the most cutting-edge ideas. I’ve seen first-hand how technological innovations like quantum computing, genomics, and projectile fusion are on course to change the world. But this type of deep tech or clean tech could also be game-changing for UK productivity, and go onto employ tens of thousands of people in the jobs of tomorrow.

Indeed, UK spinouts secured £2.5bn in equity investment in 2021 - an almost 70% rise from the previous year, and a five-fold increase on investment in 2012. Cambridge university recently confirmed its spinouts created £23 billion for the UK economy in the last year alone.

If we can capitalise on this momentum, UK spinouts could be the engine for growth this country needs.

I know it won’t be the findings of the review alone that will enact the changes the sector needs. It needs to go hand-in-hand with government action if we’re to truly become a science superpower.

My hope is that this is the start of new era in which we embrace the commercial and economic potential of the innovations coming out of our world-leading academic institutions, and take action to keep them in the UK.

Only by doing so can we create, as the Chancellor put it, ‘prosperity with a purpose’.