Government plots university spinout crackdown
The government is plotting a major crackdown on university spinouts that shift their operations abroad or float overseas, the boss of the body responsible for research investment has said, in a move likely to spark unrest among founders and the venture capital industry. Sir Ian Chapman, the chief executive of UK Research and Innovation (UKRI), [...]
The head of the UK Research and Innovation (UKRI) agency has revealed that the government plans to tighten the conditions attached to research grants in an attempt to curb the flow of successful spinouts moving abroad. Sir Ian Chapman, the chief executive of UKRI, stated that the current terms and conditions for intellectual property (IP) are the most liberal among G7 countries.
He hinted at potential measures that could include prioritizing a London listing for IP-heavy spinouts or clawing back investments and grants if firms accept an overseas bid. However, he did not publicly discuss the exact options under consideration and suggested that forcing overseas listings or clawing back investments might be considered.
Critics argue that such measures could deter early-stage investors and reduce the valuations of UK-founded companies, ultimately stifling entrepreneurship and innovation.
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