PAXIS Workshop, SalamancaJune 23, 2005
Wales, an example of the regional infrastructure for Higher Education Global Start-ups
Dr. Richard ThompsonWales Spinout ProgrammeFinance Wales
Professor David BrooksbankDr Brychan ThomasWelsh Enterprise Institute
Aim
• To consider the Welsh infrastructure as a case study of the support required at regional level to facilitate Global Start-ups from Higher Education.
• To understand how the infrastructure could be optimised!
Welsh regional infrastructure
Context:• Undergoing considerable change• Change led by the Welsh Assembly Government
– Minister for Economic Development and Transport
– National Assembly for Wales Economic Development Committee
Regional SupportWide ranging tiered infrastructure:• UK Central Government
– DTI, Research Councils etc.– (10 year science and technology plan)
• Wales Assembly Government (WAG) http://www.wales.gov.uk• Wales Trade International (WTI) http://www.walestrade.com
– Finance Wales (FW) http://www.financewales.co.uk • Wales Spinout Programme (WSP) http://www.spinoutwales.co.uk
– Joint Enterprise with all 12 HEI’s– Welsh Development Agency (WDA) http://www.wda.co.uk
• Knowledge Exploitation Fund (KEF) http://www.kef-wales.org.uk – Education and Learning Wales (ELWa) http://www.elwa.ac.uk – Higher Education Funding Council for Wales
• HEED Funding (3rd Mission)
Welsh Approach to HE Spinouts • 1990 – 1999, only ~17 Spinouts
Wales Spinout Programme• 1st five years (2000 – 2005)
– 95 spinouts• ~25 (potential) GlobalStats (international)• 80 currently trading• 290 jobs• Diverse range of activities
– £6 million Levered in funds – £1.7 million loaned (50% all ready repaid)– 17 loans fully re-paid
Wales Spinout Programme
Objectives:
“To promote and support the creation of new businesses in the context of the Higher Education Sector in Wales”
“To help the new businesses to achieve their full potential”
Wales Spinout Programme
• HE only• Pan Wales Programme
– Co-operation between all 12 Welsh HEI’s and Finance Wales
• 7 Spinout Managers
– Commercial people embedded in HE
– Offer advice and mentoring to potential Spinouts
– Work with and alongside the WILO’s
Wales Spinout Programme - Support
• Potential support for each Spinout includes:– Spinout managers support to develop a business plan and
mentoring for 12 months
– Unsecured loans of up to £25,000 (3 years, with support)
– Marketing and consultancy support
– Facilities and space in the HEI
– Development training (Sales etc)
• Help then to achieve their potential (signposting/monitoring)
Model of Public Funded Business Support
Policy Funds
Business Support Organisations
Programmes/Initiatives
Business Support Mechanisms
Global Start-ups
GOVERNMENT
Consultative Approach to Business Support
“Top down approach”
“Bottom up requirement”
Provision Gaps
Feedback requirements
Request response
Feedback loop
GlobalStart – regional support
• Comprehensive report prepared on the Welsh Regional Infrastructure
– Literature review and background research– Preparation of support matrix and checklist for
other regions• Overview presented
– Case study interviews (ongoing)
Areas of Support• Refining and protecting the idea• Business planning
• Market research, consultancy, finding Premises
• Start-up• Finance• Training / business skills / mentoring / marketing• Technology (R&D)• Internationalisation (Global),
• exporting, online sales, trade fares
Case Studies
• 20 Spinout companies short listed International (or international/global potential)
• First examples:– Case Study 1: Geo Info company– Case Study 2: Pet Care company– Case Study 3: Under Grad company– Case Study 4: specialised Testing company(Data for individual companies will remain anonymous)
External Support Links to Predictive Solutions
Predictive Solutions
Ltd.
Professional Bodies:Robotics Institute,Society for Biomolecular Screening
Industry Bodies:Innomedica,IBC Life Science,HTS
Industry Group:Aberystwyth Qualitative Biology and Quantitative Analytical Biotechnology Group
Universities:University of Wales,Aberystwyth,UMIST
Government Department:DTI Bio Wise
Spinout Programmes:Aberystwyth Challenge Fund,Wales Spinout Programme
Case Study Examples Support Matrix
Case Studies Support
Challenge Fund
SpinoutProgramme
LocalUniversity
VentureCapital
Company 1 √ √ √
Company 2 √ √
Company 3 √
Company 4 √
Company 5 √
Company 6 √ √
Company 7 √ √
Business Support Organisations in Wales• Private Consultant• Chamber of Commerce• Welsh Development Agency• Local Authority• Business Eye• Enterprise Agency (CAVE, Business in Focus)• CETW/CCETS• Universities• Further Education Colleges• Other
Business Support Mechanisms• Information services• Business advice• Short courses• In-house training courses• Business support• Financial support• Marketing advice• Sales support• Mentoring• Technical support
Business Support Information Resource for Wales
Type of Support Number of Providers
1. Business Advice 132. Business Clubs and Forums 353. Business Support Organisations 264. Education: Universities and Schemes 285. Entrepreneur Schemes 216. Finance Sector 177. Government Bodies 168. Information Sources 139. Patents and Intellectual Property 810. Technology Sector 16
Source: Business Eye (2004)
Tentative GlobalStart Support Matrix for Wales
Business Support provision
Categories/BusinessSupport providers(examples)
Contactpoint
Informationresource
Net-working
Businesssupport
BusinessForum
Business Club
BusinessTraining
BusinessScheme
Financial support and management
No
1. Business Advice 1 1 - - - - - - - 2
2. Business Clubs and Forums
- - 6 5 12 2 - - - 25
3. Business Support Organisations
- - - 17 - - - - 17
4. Education: Universities and Schemes
- - - 1 - - 3 - - 4
5. Entrepreneur Schemes
- 3 - 2 - - - 1 2 8
6. Finance Sector - - - - - - - - 3 3
7. Government Bodies - 1 - - - - - - - 1
8. Information Sources - 5 - - - - - - - 5
9. Patents and Intellectual Property
- - - 1 - - - - - 1
10. Technology Sector - 4 - 1 - - - - 1 6
No 1 14 6 27 12 2 3 1 6 72
INTERACTION 12 HEIs
BEST PRACTICE
WALES SPINOUT PROGRAMME
R&D Knowledge PPOC (HEI/TTO) (WDA)IP
HEI
IDEAS
G2E IP Test idea-commercial?
International COMPANY
KEF Scholarship SPINOUT MANAGERS(HEI & FW)
Market? Market Research & Consultancy
Business Plan (Seed funds)
HEI/WSPKick-out?
Hot desk Viable Business Plan
Inc.WSP
Office
PropertiesHEI/WSP
GrantAIG (WAG)SMART (WDA)
FinanceFunding
Loan (unsecured/interest free)Equity FW– Angels (WDA)- Feeder Fund
SupportMentoring(WSP)Business TrainingWTI(WAG)
WSPOther
ELWALA
Start-up Bank Enterprise Agency
Technium(WDA)
Further Funding VC (FW) TaxPrivate Sector
(WDA)
UK-NESTA
Business Support(WAG)
GROWTH Technium 2 - DTI- SFLG
High GrowthPrivate
Mapping the Welsh Regional Infrastructure
-Regional/team approach-Long term (8 years +)
Ongoing work:• Complete case studies
– Analyse results– Feed into infrastructure
• Refine our understanding of the support mechanisms
– Generic information for other regions• Provide comprehensive information resource• Refine Globalstart support matrix• Review availability/potential availability of support
