Published by Jessica Weisman-Pitts
Posted on February 1, 2022
By Gillian Murray, Deputy Principal of Business and Enterprise at Heriot-Watt University
University ‘spinouts’ have a well-known reputation for rapid growth. The support provided by the university ecosystem, with experts on-hand to offer business advice and access to world-class facilities, gives many budding entrepreneurs a meaningful kickstart on their business journeys.
Indeed, in the first eleven months of 2020, UK spinouts raised £1.11 billion according to the Royal Academy of Engineering’s ‘Spotlight on Spinouts’ 2021 report. The report also showed that over 20% of spinouts between three and five years old grow their employees by more than 100%, highlighting the rapid growth many achieve.
The university ‘spin-in’ is, however, a new phenomenon which offers a novel approach to growth for companies looking for extra support amidst the challenges of the pandemic or collaborative opportunities to develop new products. The flipside of the university spinout, companies founded independently from a university incubator choose to team up with one to benefit from university resources. As the shaky recovery and uncertainty around the pandemic continues into 2022, it is likely that the ‘spin-in’ will become a more widely recognised and popular choice for businesses.
But what is a spin-in and why would a company want to take this step?
What is a university spin-in?
A university spin-in is a company that decides to partner with a university to support growth, develop new technologies or secure additional investment. Whilst a university spinout is a company born from the commercialisation of university research – often with support from the university’s entrepreneurial team – a spin-in is a company that was originally founded outside the academic system but joins forces with a university further down the line.
Benefits to companies
As the success of spinouts has shown, university incubators can propel growth and provide much sought-after support, even amidst the uncertainty caused by the Covid-19 pandemic.
According to a report by Simply Business, the pandemic has cost small businesses upwards of £126.6 billion. 24% of businesses surveyed were unsure if they would still be trading in 2022. Continued uncertainty surrounding the pandemic and the potential for future lockdowns leaves many small companies in a precarious position. The challenges suggest businesses will look for new opportunities for support.
Numerous factors could encourage a company to take the spin-in route. For some, integrating into a university could give important access to relevant research communities and world-class laboratory facilities, creating opportunities to develop new technologies and products. Partnering with a university means the company does not need the same level of upfront investment to expand its own research and testing facilities, and has the added benefit of providing opportunities to collaborate with leading academics who may contribute to new research. Reducing risk, the spin-in approach also allows access to translational funding, bridging the gap between early-stage technology created through research and its commercialisation.
Access to new talent to grow a business or reskill a current team
For others, the chance to relocate to a university campus and secure office space in a well-connected environment could be an important consideration. There could even be opportunities to access university-led investment schemes or relocation funding, helping to fuel growth and support the company’s business strategy.
Access to skills and tailored higher education opportunities is also fundamental to the success of the spin-in approach. With the growth of online learning, access to higher education is now possible from anywhere in the world, evidenced by the recent launch of our initiative Heriot-Watt Online during Expo 2020 Dubai.
The initiative includes undergraduate and master’s courses, as well as apprenticeships, and responds to the changing demographic of learners as well as the needs of businesses and industry bodies. With workplace skills changing rapidly employers and employees must keep pace and this flexible learning model means employees can accelerate the skills that are relevant to their role, informed by the needs of their employers.
Case study: Celestia UK
A spin-in which has already paved the way for this new approach to growth is Celestia UK. Part of Netherlands-based Celestia Technologies Group, the high-growth tech company specialises in the advancement of state-of-the-art antenna systems used for tracking satellites. In 2020, it decided to ‘spin in’ to the Global Research Innovation and Discovery (GRID) facility at Heriot-Watt University in Edinburgh as part of a strategic plan to establish a base in the UK.
Following a five-month residency in the University’s Global, Research, Innovation and Discovery facility (GRID), Celestia UK announced that it would establish its permanent base within the university’s Research Park, which is recognised internationally as a centre for high calibre science and engineering research. The opportunity to operate from the Research Park aligned with the company’s business needs by helping it to further integrate into Scotland’s space sector; an industry which is rapidly growing thanks to significant levels of new research and investment. Indeed, according to the UK Space Agency, 17% of jobs in the UK space sector are now based in Scotland.
However, recruiting specialist skills can pose a challenge for growing businesses. Through Heriot-Watt University, Celestia has already recruited three Graduate Apprentices. Skills Development Scotland developed Graduate Apprenticeships, in partnership with industry and the further and higher education sectors, to provide work-based learning opportunities up to Master’s degree level. Creating flexible training options that ensure employees develop the right skills while working is a further benefit of the spin-in approach to business growth.
Spinning in has allowed Celestia UK to launch its next development phase, including setting up new lab and assembly facilities, and establishing a larger base to deliver cutting-edge innovation in satellite-on-the-move user terminals and gateway systems. University support helped establish the business in Edinburgh and strengthen its links with local businesses.
The company’s experience provides a template for the spin-in model, setting a precedent for companies to embrace the collaborative approach championed by university incubators.
How to spin-in
There are many reasons why companies might choose to ‘spin in’ in 2022. But as with any upcoming trend, there is no ‘one way’ to get it right.
If your company is interested in becoming a spin-in, there are a few simple steps that can help the process.
First, it is important to decide what support you are looking for from a potential university partner. Are you most interested in investment? Do you require access to research labs and an academic community to support the development of new products? Are you hoping to set up a new base or generate networking opportunities within your sector? Having a clear understanding of what you want to get out of the agreement will help you decide if it’s the most appropriate route for your business growth.
Next, it is important to research university incubators and any support that is available to external companies. Reach out to any institutions you are interested in and ask plenty of questions: have they supported a spin-in before? Do they offer access to university facilities? Are there opportunities to secure relocation funding?
The final agreement will be unique to your company and the university. This approach to uniting university expertise and facilities with growing businesses is new and offers an opportunity to explore fresh territory. As there is no established pathway for ‘spinning in’, companies who explore this route in 2022 could find they are forging the path that works best for them.
With the business community facing the possibility of another year of uncertainty, the ‘spin-in’ is an exciting prospect. Additional support from a university could act as a welcome buffer to the challenges of the pandemic and help companies to not only survive but grow. The same ethos of entrepreneurial support and collaborative research which has fuelled the success of university spinouts can foster a new wave of ‘spin-in’ success in 2022.
Author Bio:
Dr Gillian Murray is a deputy principal at Heriot-Watt University. She is passionate about driving global innovation and skills development using new digital technology to break down collaboration barriers and facilitate co-invention.
By Gillian Murray, Deputy Principal of Business and Enterprise at Heriot-Watt University
University ‘spinouts’ have a well-known reputation for rapid growth. The support provided by the university ecosystem, with experts on-hand to offer business advice and access to world-class facilities, gives many budding entrepreneurs a meaningful kickstart on their business journeys.
Indeed, in the first eleven months of 2020, UK spinouts raised £1.11 billion according to the Royal Academy of Engineering’s ‘Spotlight on Spinouts’ 2021 report. The report also showed that over 20% of spinouts between three and five years old grow their employees by more than 100%, highlighting the rapid growth many achieve.
The university ‘spin-in’ is, however, a new phenomenon which offers a novel approach to growth for companies looking for extra support amidst the challenges of the pandemic or collaborative opportunities to develop new products. The flipside of the university spinout, companies founded independently from a university incubator choose to team up with one to benefit from university resources. As the shaky recovery and uncertainty around the pandemic continues into 2022, it is likely that the ‘spin-in’ will become a more widely recognised and popular choice for businesses.
But what is a spin-in and why would a company want to take this step?
What is a university spin-in?
A university spin-in is a company that decides to partner with a university to support growth, develop new technologies or secure additional investment. Whilst a university spinout is a company born from the commercialisation of university research – often with support from the university’s entrepreneurial team – a spin-in is a company that was originally founded outside the academic system but joins forces with a university further down the line.
Benefits to companies
As the success of spinouts has shown, university incubators can propel growth and provide much sought-after support, even amidst the uncertainty caused by the Covid-19 pandemic.
According to a report by Simply Business, the pandemic has cost small businesses upwards of £126.6 billion. 24% of businesses surveyed were unsure if they would still be trading in 2022. Continued uncertainty surrounding the pandemic and the potential for future lockdowns leaves many small companies in a precarious position. The challenges suggest businesses will look for new opportunities for support.
Numerous factors could encourage a company to take the spin-in route. For some, integrating into a university could give important access to relevant research communities and world-class laboratory facilities, creating opportunities to develop new technologies and products. Partnering with a university means the company does not need the same level of upfront investment to expand its own research and testing facilities, and has the added benefit of providing opportunities to collaborate with leading academics who may contribute to new research. Reducing risk, the spin-in approach also allows access to translational funding, bridging the gap between early-stage technology created through research and its commercialisation.
Access to new talent to grow a business or reskill a current team
For others, the chance to relocate to a university campus and secure office space in a well-connected environment could be an important consideration. There could even be opportunities to access university-led investment schemes or relocation funding, helping to fuel growth and support the company’s business strategy.
Access to skills and tailored higher education opportunities is also fundamental to the success of the spin-in approach. With the growth of online learning, access to higher education is now possible from anywhere in the world, evidenced by the recent launch of our initiative Heriot-Watt Online during Expo 2020 Dubai.
The initiative includes undergraduate and master’s courses, as well as apprenticeships, and responds to the changing demographic of learners as well as the needs of businesses and industry bodies. With workplace skills changing rapidly employers and employees must keep pace and this flexible learning model means employees can accelerate the skills that are relevant to their role, informed by the needs of their employers.
Case study: Celestia UK
A spin-in which has already paved the way for this new approach to growth is Celestia UK. Part of Netherlands-based Celestia Technologies Group, the high-growth tech company specialises in the advancement of state-of-the-art antenna systems used for tracking satellites. In 2020, it decided to ‘spin in’ to the Global Research Innovation and Discovery (GRID) facility at Heriot-Watt University in Edinburgh as part of a strategic plan to establish a base in the UK.
Following a five-month residency in the University’s Global, Research, Innovation and Discovery facility (GRID), Celestia UK announced that it would establish its permanent base within the university’s Research Park, which is recognised internationally as a centre for high calibre science and engineering research. The opportunity to operate from the Research Park aligned with the company’s business needs by helping it to further integrate into Scotland’s space sector; an industry which is rapidly growing thanks to significant levels of new research and investment. Indeed, according to the UK Space Agency, 17% of jobs in the UK space sector are now based in Scotland.
However, recruiting specialist skills can pose a challenge for growing businesses. Through Heriot-Watt University, Celestia has already recruited three Graduate Apprentices. Skills Development Scotland developed Graduate Apprenticeships, in partnership with industry and the further and higher education sectors, to provide work-based learning opportunities up to Master’s degree level. Creating flexible training options that ensure employees develop the right skills while working is a further benefit of the spin-in approach to business growth.
Spinning in has allowed Celestia UK to launch its next development phase, including setting up new lab and assembly facilities, and establishing a larger base to deliver cutting-edge innovation in satellite-on-the-move user terminals and gateway systems. University support helped establish the business in Edinburgh and strengthen its links with local businesses.
The company’s experience provides a template for the spin-in model, setting a precedent for companies to embrace the collaborative approach championed by university incubators.
How to spin-in
There are many reasons why companies might choose to ‘spin in’ in 2022. But as with any upcoming trend, there is no ‘one way’ to get it right.
If your company is interested in becoming a spin-in, there are a few simple steps that can help the process.
First, it is important to decide what support you are looking for from a potential university partner. Are you most interested in investment? Do you require access to research labs and an academic community to support the development of new products? Are you hoping to set up a new base or generate networking opportunities within your sector? Having a clear understanding of what you want to get out of the agreement will help you decide if it’s the most appropriate route for your business growth.
Next, it is important to research university incubators and any support that is available to external companies. Reach out to any institutions you are interested in and ask plenty of questions: have they supported a spin-in before? Do they offer access to university facilities? Are there opportunities to secure relocation funding?
The final agreement will be unique to your company and the university. This approach to uniting university expertise and facilities with growing businesses is new and offers an opportunity to explore fresh territory. As there is no established pathway for ‘spinning in’, companies who explore this route in 2022 could find they are forging the path that works best for them.
With the business community facing the possibility of another year of uncertainty, the ‘spin-in’ is an exciting prospect. Additional support from a university could act as a welcome buffer to the challenges of the pandemic and help companies to not only survive but grow. The same ethos of entrepreneurial support and collaborative research which has fuelled the success of university spinouts can foster a new wave of ‘spin-in’ success in 2022.
Author Bio:
Dr Gillian Murray is a deputy principal at Heriot-Watt University. She is passionate about driving global innovation and skills development using new digital technology to break down collaboration barriers and facilitate co-invention.
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