University challenge - unlocking Britain's commercial potential

A major new challenge fund was announced in the Budget today, aimed at unlocking the wealth of knowledge and innovation in Britain's universities by creating 50 million pounds in venture capital.

'University Challenge' will invite universities to compete for seed venture capital funds. These will be used to help turn scientific discoveries into commercially viable projects, improve university business awareness and bring innovative and competitive products to the market place.

Paymaster General Geoffrey Robinson urged universities to take up the challenge:"This country's science base is world-class. By unlocking the potential of university research, Britain will reap the benefit through jobs and growth. "University Challenge will help fill the funding gap which ha sin the past prevented innovative research being turned into commercial ventures. In the week where we are celebrating the enormous contribution science has made - National Science Week -I am determined that Britain should benefit from this untapped potential."

The fund, part of a package to promote enterprise and high tech growth, is a unique partnership between Government, which is providing 20million pounds, and major charities, including the Wellcome and Gatsby Trusts, which will provide matching finance. These contributions will lever in additional funds raised by Challenge-winning universities, in partnership where possible with the private sector.

Sir David Cooksey, a Governor of the Wellcome Trust, said:"I am delighted that the Wellcome Trust will be a part of this imaginative scheme. Bringing universities, businesses and finance providers closer together will help to reduce the finance and culture gaps which make it difficult for universities to ensure that the commercial benefits of their discoveries are realised."

To be successful in the Challenge, universities will need to demonstrate that they have research ideas with commercial potential and academics keen to develop this potential in partnership with the private sector. Seed funds will be used to establish the commercial viability of research, develop business propositions and provide initial funding for start up companies.

Notes for editors

1. The University Challenge competition will be held during 1998/99. Universities across the UK will be invited to compete for seed venture capital funds - with bids being considered by an expert panel.

2. Successful entrants will be those universities that can demonstrate that they have a range of viable projects to take up seed funding, a proper organisation in place to manage the fund, and entrepreneurial staff who will be given the time and support to commercialise their research. Winning universities will also need to contribute towards their seed fund, from their own resources or by raising money from local business and charities.

3. Each seed fund will be required to have a dedicated manager from the private sector, overseen by a supervisory board drawn primarily from the business community. Seed funds will be used to finance the demonstration of utility of research discoveries and to provide initial funding for start up companies.

4. The Wellcome Trust is the UK's leading source of charitable funds for biosciences research.

5. The Gatsby Foundation is one of the Sainsbury Family Charitable Trusts, and supports research and development across the full range of scientific disciplines .

6. Science Week - or SET98 - is this year's celebration of science, engineering and technology. It is co-ordinated by the British Association with funding from the Office of Science and Technology. Science Week aims to raise awareness and appreciation of scientific processes and the value of science, engineering and technology to society and the economy through events ranging from fairs to lectures. In 1997 there were more than 5,000 attracting more than 1 million participants.

HM Treasury press office