Spotlight: Growing the Economy

University of Edinburgh, University of Strathclyde, University of Dundee, Oilthigh Ghlaschu, Queen Margaret University 

• The University of Edinburgh (Edinburgh Innovations) is ranked in the top five in the UK for producing the most successful spinouts over the past 20 years (1998-2018). The University is responsible for 4.6% of the UK’s total spinouts as it has spun out a total of 66 companies, raising more than £240 million. This includes biopharma multinational MTEM, worth £140 million. 

• The University of Strathclyde has successfully spun out 48 research-based companies and a total of £208 million equity funding has been obtained by 75% of the university’s spinouts. The highest value was secured in 2023 when £34.3 million was raised by ENOUGH, a company specialising in mycoprotein development. 

• The University of Dundee ranks top of Octopus Ventures Entrepreneurial Impact Ranking (2022), driven by the high exit value of two of its spinout companies.  Exscientia floated on the US NASDAQ in 2021 in an upsized IPO at a valuation of $2.9 billion, making it one of the highest ever UK university exits and Amphista Therapeutics’ was awarded Finance Deal of the Year in the 2021 Scrip Awards, in recognition of an oversubscribed £38 million Series B funding round.  

• The Oilthigh Ghlaschu has successfully transformed research into 38 spinouts which have collectively secured £100m in equity funding, with Chemify raising £36m in a single funding round. Chemify focuses on supplying digital hardware and software solutions for chemical processing applications.  

• Queen Margaret University’s first high-growth development is Palm-Alt, a replacement for palm-based fat in baked goods. With no in-house Technology Transfer Office (TTO), the sharing of expertise and experience with the University of St Andrews and Edinburgh Innovations has been essential to realising the full commercial exploitation of Intellectual Property (IP).  

Abertay University, Heriot-Watt University, Robert Gordon University, University of Dundee, University of Edinburgh, University of Glasgow, University of Strathclyde, SFC Innovation Centre Programme, Interface 

• Abertay cyberQuarter at Abertay University is an £18m cybersecurity research and development centre jointly funded by the University and the UK Government and Scottish Government through the Tay Cities Region Deal. It is a platform for tech businesses to work together to solve existing and emerging problems, supported by leaders in industry and Scottish universities. With a worldwide shortage of cybersecurity skills, the centre offers businesses access to new talent, as well as giving real-world experience to students. The cyberQuarter is bringing inclusive economic growth to the region by supporting the expansion of SMEs and supporting new businesses.  

• Scotland has scope to establish itself as a MedTech hub – akin to Galway, San Francisco or Berlin – and the Medical Device Manufacturing Centre (MDMC), a partnership between Heriot-Watt University, Robert Gordon University, University of Edinburgh, University of Glasgow and University of Dundee, provides medical device developers and manufacturers with access to essential advice, technical expertise and facilities for companies seeking to translate medical device concepts into commercial products.  

• The Cancer Research UK Formulation Unit within the University of Strathclyde develops anti-cancer drugs for early-stage clinical trials, providing compounds to pharmaceutical companies for further development, some of which are now used worldwide to treat cancer. For example, temozolomide, marketed as Temodal® by Schering Plough, and abiraterone acetate, marketed as Zytiga® by Johnson and Johnson. With these two drugs alone, the Unit has improved the lives of over 3.5 million cancer patients globally, as well as driving economic benefit. 

• Innovation Centres (ICs) connect Scotland’s academic expertise with key industrial sectors to help solve industry problems, as well as supporting skills development for the next generation of researchers and knowledge exchange practitioners. SFC funds four ICs: Built Environment-Smarter Transformation (BE-ST), Digital Health Care (DHI), Industrial Biotechnology (IBioIC) and The Data Lab (TDL). Long-term investment in ICs (since 2013) has been essential for building sustained industry relationships that lead to impact – this will continue with ICs as part of SFC’s wider innovation infrastructure. 

• Interface (hosted by Edinburgh Innovations) connects a wide variety of companies to Scotland’s universities by working with businesses to define their innovation needs and matching them to academic expertise that can help solve problems and build sustained relationships. In AY23/24 Interface connected over 950 businesses resulting in over 300 new collaborative projects with Scottish universities, colleges and research institutes. Interface’s core funding is provided by SFC. 

Converge, University of St Andrews, University of Edinburgh, SRUC 

• Converge, hosted by Heriot-Watt University, bridges the gap between academic research and commercialisation by providing prizes and awards to promising university spin outs to enable them to develop and grow. It has supported the creation of over 400 companies and delivered entrepreneurial training to over 1,500 aspiring entrepreneurs who are staff, students or recent graduates from all Scottish universities. Core funding is provided by SFC, and all 19 Scottish universities contribute funding, reflecting its value for entrepreneurs in the innovation system. 

• The University of St Andrews’ Eden Campus brings world-class university R&D together with local businesses and start-ups operating within the green supply chain to deliver innovative smart energy solutions of the future. It provides much-needed modern business premises for new and growing businesses in the region. Still in development, up to £26.5m will be invested in the Campus which is estimated to create around 500 new jobs and leverage in £110 million of other investment to the region.  

• The University of Edinburgh’s commercialisation arm, Edinburgh Innovations, and the University’s in-house venture fund, Old College Capital provide support to academic spinouts across the institution. The University expects to hold an equity position equal to that of the founders; however, the final equity stakes will be determined based on various factors such as the IP, involvement of individual researchers, and investment in the project prior to the formation of the company. 

• SRUC has established Scotland’s first Enterprise Academy for the Rural and Natural Economy to work with students, researchers, entrepreneurs and the wider community to help accelerate the uptake and delivery of sustainable enterprise while developing enterprising mindsets and enhancing the business skills. The Academy aims to nurture a sustainable enterprise culture at the heart of SRUC; to develop enterprising mindsets, knowledge and skills and to facilitate new ideas and businesses; and to champion sustainability and innovation and promote active engagement in the natural economy.   

University of Strathclyde, IBioIC, University of Edinburgh, University of Aberdeen, BE-ST, Edinburgh Napier University  

• Manufacturing  accounts for over half of Scotland’s international exports, more than 169,000 jobs and 47% of business expenditure on R&D. Based at the University of Strathclyde, the National Manufacturing Institute Scotland (NMIS) aims to build on the central role of manufacturing in Scotland’s economy and position Scotland as a global leader. NMIS focuses on collaborating with industry, academia and the public sector to deliver ground-breaking research to transform productivity through advanced manufacturing. It has a growing network of world-class manufacturing R&D facilities and works with businesses of all sizes and sectors across Scotland, the UK and internationally. 

• IBioIC has a central and impactful role in leading the UK’s Industrial Biotechnology ecosystem, securing the only UKRI Innovate UK Launchpad for Scotland in partnership with Scottish Enterprise and Forth Valley College. £7.5m funding will support biobased manufacturing in Scotland. IBioIC have also been awarded funding to be the Cluster Management Organisation to support the launchpad initiative and to continue to grow Scotland’s Industrial Biotechnology cluster. 

• The University of Edinburgh’s Data-Driven Innovation programme (DDI) is a major part of the Edinburgh and Southeast Scotland City Region Deal and is a regional powerhouse for collaboration with industry partners. DDI hubs – including the Bayes Centre, the Edinburgh Futures Institute and the Usher Institute – house expertise and facilities to help 10 industrial sectors, (including public sector, financial services, health and social care, digitech and creative industries) to become more innovative through data.  DDI has supported people across Scotland to develop their data skills with over 200,000 courses, CPD and MOOCs completed. DDI has also supported 614 early-stage data-centric companies to grow their potential. 

• The National Decommissioning Centre at the University of Aberdeen is leading research and technology development to tackle current and future challenges in the decommissioning of assets within the oil and gas, renewables and nuclear sectors. With an estimated annual UK decommissioning spend for oil and gas of £1.2-2.5 billion and approximate £4 billion for nuclear decommissioning, the Centre is an essential R&D asset working to provide industry with cost effective, environmentally responsible and sustainable solutions to the challenge of energy transition.    

• The Built Environment – Smarter Transformation (BE-ST) Innovation Centre (SFC funded) and Edinburgh Napier University are City Region Deal partners in the Edinburgh Home Demonstrator (EHD) project. Together with offsite manufacturing and design professionals, the project is developing and testing a new model of collaborative procurement and advanced offsite manufacturing to deliver net zero carbon solutions across the construction of 1,000 new homes. 

Abertay University, University of Dundee, University of St Andrews, SRUC, University of Glasgow, DHI, UHI, Moray College

• Led by Abertay University, in partnership with the University of Dundee agus University of St Andrews, InGAME delivers research, research development and innovation support to games companies. InGAME has helped to establish a thriving digital innovation ecosystem that has sustained and grown Dundee’s Creative Industries Cluster; in its first five years of operation (2018-2024) InGAME delivered 177 industry collaborations, upskilled 2,283 professionals and stimulated £11.5 million in industry co-investment. Over the next ten years, InGAME is projected to generate £84.7 million in GVA for the Scottish economy and support around 175 jobs. 

• SRUC lead the Digital Dairy Chain, a £21million UKRI funded project, which aims to transform the dairy supply chain through innovation, collaboration and growth, uplifting the rural economy in the process. The multi-partner project involves academia, local government and industry – including Arla, Afimilk, Dale Farm and Rowan Glen – and focuses on aligning industry needs through developing digital connectivity, stimulating research and new product development, supporting business growth and attracting talent and skills. The project will have national impact but is predominately focused on the South & West of Scotland where it aims to create 600 new jobs, enhance sustainability and generate an anticipated £60 million per year for the region. 

• The Glasgow Riverside Innovation District (GRID) is a partnership between the Oilthigh Ghlaschu, Scottish Enterprise and Glasgow City Council, which aims to boost existing collaborations with industry and encourage the formation of new ones in dynamic sectors of the economy. With the university as the anchor institution, GRID benefits from a huge range of existing world-class infrastructure, and, alongside access to the outstanding academic expertise based around the University, GRID is home to the world-leading Clinical Innovation Zone based around the Queen Elizabeth University Hospital, the largest hospital campus in Europe, as well as the emerging cultural quarter based around the Kelvingrove Museum & Art Gallery, the world-leading Scottish Events Campus and the vibrant media hub at Pacific Quay, which includes the headquarters of BBC Scotland. 

• DHI, in partnership with UHI and Moray College, led the development of the Rural Centre of Excellence for Digital Health and Care (RCE) in Moray (2021-2025). This £5 million UK Government investment, supported by £3 million in-kind contributions, aims to advance Scotland’s digital health agenda, address rural challenges and support economic recovery through digital innovation. DHI manages and delivers the project, which has led to 12 simulations and Living Labs, 4 significant inward investments and the creation of more than 30 high value jobs.  

• In 2022, total spending on R&D accounted for 2.58% of Scotland’s economy, above the EU average: https://www.gov.scot/publications/gross-expenditure-on-research-and-development-scotland-2022/ (released September 2024) 

• In 2022, total spending on university R&D accounted for 0.99% of Scotland’s GDP, the highest of any region in the UK: https://www.gov.scot/publications/gross-expenditure-on-research-and-development-scotland-2022/ (released September 2024) 

• Every £1 of public R&D spending stimulates £1.96 to £2.34 of private spending: The relationship between public and private R&D funding (publishing.service.gov.uk) 

• In 23/24, university income from business and community interactions was £684m, the third highest of any region as defined by Jisc regional classification: https://www.hesa.ac.uk/data-and-analysis/providers/business-community/chart-2 (released April 2025) 

• Three Scottish universities are in the top 20 UK universities for total number of spin outs: Spotlight on Spinouts 2025 | Beauhurst | Royal Academy of Engineering  

• A third of Scotland’s late-stage equity deals in 2023 with a value of £10m and above were for university spin-outs: https://www.scottish-enterprise.com/learning-zone/case-studies/scotland-retains-its-position-as-a-top-performing-market-in-challenging-conditions (released July 2024) 

• In 2023, Scotland was second to London among UK locations attracting new Foreign Direct Investment (FDI) projects: FDI in Scotland attracts a record number of projects | EY – UK (released July 2024) 

• There are approx. 1,560 active university spin out and start-up companies in Scotland, generating  £410m: HE Business and Community Interaction Survey, Intellectual Property, Start-ups and Spin-outs, AY 2023-24 

• For every direct R&I job, an additional 0.6 jobs were created for the wider economy: 2023-11-Report-Valuing-university-research-FINAL.pdf