UK risks becoming an 'incubator economy', but Birmingham promise holds strong

University leaders have warned that the UK risks becoming an incubator economy, with innovative technology companies moving to other countries or selling to foreign companies, unless the country fosters home-grown start-ups¹.

The stark warning was issued today by Universities UK, as part of an analysis revealing a rapid rise in university start-ups in the last ten years, and with a UK-wide prediction of 27,000 new start-ups could be established by university staff and students by 2028.

But according to David Coleman, CEO of University of Birmingham Enterprise Ltd (UoBE), the prospect for home-grown Birmingham start-ups is strong – particularly those in technology, advanced manufacturing, or the competitive health technologies sector.

UoBE, which is a subsidiary of the University of Birmingham, manages its 35-strong portfolio of active spin-out companies.  Collectively these have a turnover of £22m and employ over 500 people.  It also works collaboratively within the region, to ensure that the local environment is as effective as possible, and a brilliant place for start-ups that want to scale and grow. 

“Growing companies need space, and the University also provides this infrastructure with incubation, office and laboratory space for research-led companies at the Birmingham Research Park, and specialist grow-on space at the Precision Health Technologies Accelerator, and Tyseley Energy Park, which keep enterprises in the region, close to the knowledge base, facilities, and expertise at the University.”

This spirit of collaboration includes working with other universities to bring more investment to the region. The ambitious patient capital investment company Midlands Mindforge was co-founded by eight Midlands universities – Aston, Birmingham, Cranfield, Keele, Leicester, Loughborough, Nottingham and Warwick - and aims to accelerate commercialisation of ground-breaking science and technology innovations from the eight universities and the Midlands region.

The University works directly with local growth businesses too, by providing access to kit and equipment, and supporting Minerva Birmingham PitchUp, a ‘Dragon’s Den’ style competition for business owners that has brought £65 million of investments to the region's small businesses in the last ten years.

David Coleman added: “There’s more to do to elevate the city and the region, but the Birmingham promise holds strong. The University has innovated throughout its 125-year history, and is a key part of the energy that will help the region grow enterprises, retain talent, and stem the flow of science and tech start-ups from British soil.”