Universities 'must sell expertise'

The UK is highly regarded for its scientific research

UK universities are losing millions of pounds by failing to sell their technology and expertise around the world, a report says.

Too few of the spin-off companies set up by institutions are becoming successful businesses, the Economic and Social Research Council found.

Universities had to improve their know-how and invest more money in promoting such ventures.

Academics should also be offered more rewards for commercial ideas, it added.

'More resources needed'

Professor Mike Wright of Nottingham University - which carried out the research for the ESCR - said: "Universities are tending to focus on creating businesses rather than creating wealth.

"The proportion of university spin-out companies that succeed is tiny.

"Unless universities are prepared to back their spin-outs with appropriate resources, most will continue to fail."

The findings comply with those of last year's Lambert Report, which said UK universities were performing poorly in the global "knowledge transfer" market.

It noted a difference between creating a company and creating wealth.

Prof Wright said that while venture capitalists expected 10 to15% of the new businesses they backed to generate wealth, the proportion of successful university spin-offs was much lower.

Greater phase-by-phase commercial planning was required.

The study identifies several impediments, including: poor funding, not enough time available for academics to spend on ventures and a lack of science park space for companies.

Universities have to "overcome their existing culture, values and incentives that primarily reward academics for their research efforts", the report adds..

They should also form better links with industry, it says.

The research is based on interviews with 12 representatives of university spin-off companies.