UKRI considers crackdown on university spinouts moving abroad

The UK government is considering a crackdown on university spinouts that relocate operations abroad or pursue overseas listings. Sir Ian Chapman, chief executive of UK Research and Innovation (UKRI), announced that the organization is reviewing the terms and conditions attached to government grants to prevent fast-growing firms from being acquired by foreign rivals.

Currently, UKRI maintains what Chapman described as the most liberal intellectual property terms among G7 research investors. Proposed measures to tighten these conditions could include requiring intellectual property-heavy spinouts to prioritize listings in London or implementing mechanisms to claw back investments and grants if an overseas buyer is accepted. While officials have not confirmed specific punitive measures, such as an exit tax, the move has raised concerns within the venture capital industry.