Boost in spin-out companies at Scottish universities

The number of employees also grew from 829 to 1,285 over the same period while turnover increased from £41m to £72m. However, the number of new companies dropped from 181 to 161.

The rise in total companies has been welcomed as a sign that graduate spin-outs are now more likely to survive as the wider economic climate improves.

It has also been hailed as evidence that more targeted investment from the Scottish Funding Council, which has placed a greater emphasis on the impact of research, is paying off.

Professor Jonathan Cooper, vice principal for knowledge exchange at Glasgow University, said: "It is well known that Scottish universities have been relatively successful in winning research funding and now we are beginning to see our success in academic research translate through into business.

"Although there is a small drop in numbers of graduate start ups, a trend consistent with the rest of the UK, there has been a significant increase in the external investment that these student-led companies have raised.

"These figures will be particularly pleasing for the government, enterprise agencies and the SFC who have all been working hard to put new infrastructure and training in place."

A spokeswoman for Universities Scotland, which represents university principals, said the figures provided strong evidence the sector was focused on ensuring its research had as wide an impact as possible.

She said: "When looking at spin-offs it’s not so much their creation, but their growth that is of interest and this data shows that the number of active spin-offs is growing, the number of jobs they create is growing and total turnover is growing which is all very positive.

"Spin-offs are a vital component of university innovation, but they are by far the minority of a much broader portfolio of knowledge exchange activity.

"This breadth means businesses can pick and choose the way they want to work with universities with small and medium sized companies tending to favour consultancy, whereas other companies might be interested in longer term relationships and joint research and development."

Overall, there was an 11 per cent increase in contract research between universities and businesses worth £11m with the biggest proportionate increase in activity in intellectual property - which includes the sale of shares in spin-offs - which was up by some £4m.

Last month a report questioned the value of spin-out companies which have been prioritised by the Scottish Government as part of efforts to align the work of universities with its wider economic strategy.

Creating more spin-off companies is seen as vital to that objective because it helps to commercialise research conducted in Scottish universities.

However, researchers from St Andrews University found higher education was "limited" in its ability to commercialise research and concluded that vocational education in colleges would be a better place to focus efforts.

The study, carried out by Dr Ross Brown, a lecturer in the university’s school of management, found pressure on universities to act as generators of high-tech start-ups had largely failed.

He said: “While very much the received wisdom that universities are good for business and good at creating businesses, unfortunately the reality doesn’t quite match these expectations."