The Tony Blair Institute for Global Change (TBI) has published a report recommending the UK government raise proof-of-concept research funding to £100 million a year by 2029 and set a 5% benchmark for university equity stakes in spinout companies. The think tank argues that Britain's strong academic research base is not converting efficiently enough into commercially successful, investable businesses.
What the report recommends
The report, titled "From Discovery to Startup: Strengthening the UK Innovation Ecosystem" and published in October 2026, sets a national ambition to double by 2035 the number of research-intensive companies that secure at least £2 million in cumulative external investment within five years of being founded. TBI's analysis of PitchBook data found that an average of 164 UK companies per founding cohort met this threshold between 2019 and 2021; reaching the proposed target would mean roughly 330 companies per cohort.
To close what it estimates is a £100 million annual proof-of-concept funding gap, TBI wants UK Research and Innovation's existing £40 million, five-year Proof of Concept program - currently about £8 million a year - scaled up substantially, with faster decisions on smaller awards under £150,000 processed within 60 days.
Addressing regional imbalance and spinout terms
The report highlights that London, Oxford and Cambridge, often called the UK's "golden triangle," attract 74.5% of national university spinout investment, with median funding levels four times higher than elsewhere in the country. TBI recommends that at least 40% of any new proof-of-concept funding be directed to institutions outside this cluster.
On intellectual property and equity, the institute proposes a national default agreement for university spinouts, built around a 5% benchmark equity stake for universities, with higher stakes permitted when university-owned intellectual property justifies it. The report cites the 2023 Independent Review of University Spin-out Companies, which found only 39% of founders surveyed considered their university's terms fair and balanced, while 43% disagreed. TBI argues standardized documentation and more flexibility over commercialization support could reduce friction between researchers and universities.
Doctoral training and entrepreneurship pathways
A further element involves reshaping doctoral education. TBI recommends expanding UKRI's £25 million Venture Doctorates program into a broader national pathway blending research with entrepreneurial training, potentially reaching 1,000 funded places annually by 2032 at an estimated cost of £100-150 million a year if early results are positive. The institute also backs expanding Enterprise Fellowships and growing the Royal Society's Entrepreneur in Residence program to 100 placements nationally by 2030.
Keegan McBride, TBI's Director of Science and Technology Policy and a report co-author, said Britain's universities "often struggle to turn this excellence into successful companies." These recommendations remain policy proposals rather than adopted government measures; TBI's suggested timetable calls for default spinout agreements to be finalized by mid-2027, with wider adoption across publicly funded universities targeted for the 2028-29 academic year.