Number of spin out firms set up in Irish universities trebles in 2009

New figures from the Technology Transfer Offices (TTOs) in Irish third level institutes show that the number of new enterprises - or ‘spin out’ companies - set up from Irish third level colleges increased dramatically last year. More than three times as many start-up operations were created in 2009, compared to the previous year.

The figures show that 35 spin out companies were created in 2009 across the ten main Irish third level Institutes, up from an average of just ten per year previously. The ten Institutes are made up of the seven member bodies of the Irish Universities Association, plus Waterford Institute of Technology, Dublin Institute of Technology and the Royal College of Surgeons in Ireland.

The main factor driving this progress has been the Technology Transfer Strengthening Initiative (TTSI), set up by Enterprise Ireland in 2007, which was designed to increase the commercialisation of intellectual property (IP) in Irish universities and to transfer this IP into industry. A key element of the TTSI was the establishment of the TTOs across the ten institutes at the outset of the initiative.

The new figures also show that the number of licenses issued, where new technologies or processes created by campus-based research teams are licensed to manufacturers or developers, have risen significantly, from just 33 on average per annum, before the TTSI initiative, to 102 last year.

Dr. John Scanlan, Director, Office of Commercialisation, NUI Maynooth, said: 'these new figures are hard evidence that supporting university based research works, and that it can result in the formation of sustainable, viable corporate entities. In the current business climate, the commercialisation of research from our universities can make an essential contribution to economic recovery, and these figures are proof of that.'

Of the 35 spin out firms set up last year, about half are in the information technology space and half are in the bioscience/food arena.

'What this process also demonstrates is that Ireland competes very favourably with other countries, in terms of funding invested in university based research and the production of spin out enterprises. In the U.S., where this activity is very mature and very valued, the equivalent research funding figure of about €50 million is spent per spin out created, while this figure drops to about €30 million per spin out for the UK,' said Dr. Scanlan.

'In Ireland, the figure for 2009 is about €20 million per spin out, which means that we have created what appears to be a very competitive method of commercialising IP in our universities. A key component is the excellent cross-section of talent in the TTO offices, mainly comprising ex-industry executives with broad knowledge in technology and business development,' he said.

'It’s crucial that we continue this pattern, investing in the science and in the commercialisation of the science, so the wider economy can begin to feel the benefits of this process in future years,' he added.

Examples of spin out companies that were set up in 2009 include Analyze IQ Limited, set up in NUI Galway. The company creates technologies used to analyse complex mixtures of illegal drugs, pharmaceuticals and contaminants, which are applicable in a range of industry sectors.

Other spin out firms successfully started last year were mobile software company Cauwill Technologies, set up in the University of Limerick, and Trezur Limited, which develops digital music consumer applications and which is backed by the Dublin Institute of Technology and Enterprise Ireland.