Operating Divisions
There are risks associated with university spin-outs, as founders try to raise funding and find customers. Operating Divisions (ODs), a model unique to the University of Birmingham, allow academics to test their ideas before launching a fully-fledged company, while the University’s Technology Transfer Office (TTO) handles legal, insurance and financial issues, in addition to business planning support and mentoring.
“Researchers can go and create their brand with the assurance that we are there behind the scenes managing the stuff they don’t want to worry about. They can build a team and demonstrate a trading history, giving them a greater chance of success when they actually go into the market,” says Vincent Coole, Head of Academic Consultancy Services.
There is growing interest from other universities in the Operating Division model, with some including Oxford, LSE and Exeter planning to trial their own versions of the concept, says Mr Coole.
We’ve lit the torch in terms of the principle behind Operating Divisions, which is giving spin-out ventures time to develop without having to jump into being incorporated.
His team is sharing best practice with other universities, highlighting the need for communication and flexibility. “While universities are sometimes perceived as inflexible and bureaucratic, Birmingham exhibits an incredible amount of flexibility and collaboration between colleagues: from IP management, to spin-out management, to contracts,” he explains. “The model requires a lot of communication and out-of-the box thinking. That’s something Birmingham can really be known for.”
While STEM industries dominate university spin-outs, Birmingham is also pioneering Operating Divisions in social sciences, humanities and the arts (SHAPE). “Most of the focus of spin-out activity is in medical life sciences and engineering, so we are creating a culture that looks at SHAPE commercialisation as something that’s worth investing in,” says Mr Coole. As SHAPE ventures are often service-based, the Operating Division model is an ideal way for SHAPE researchers to trial their service on the market in a risk-free way.
