Capitalising on Scottish innovation, ideas and expertise.
New initiatives taking advantage of Scotland’s world-class reputation as an innovation nation have been announced by the Deputy First Minister Kate Forbes.
Three projects, backed by £4.4 million, are designed to help turn ground-breaking research across the country’s universities and colleges into high-growth businesses that create jobs and support economic growth.
The package includes:
- £2.9 million for the Proof of Concept Fund which will explore the commercial potential of research projects by developing prototypes and pitching to investors, as well as analysing markets to attract further investment
- £800,000 for the Spinout Pipeline Project which, led by the University of Strathclyde, will help share commercialisation expertise across Scottish universities, culminating in a summit where innovators will pitch to potential investors
- £700,000 for the Entrepreneurial Campus Blueprint which will help college students to develop business skills and link in with investors
A further £141,000, spent over two years, will support a new course at the University of Aberdeen to train 40 high school computing teachers, better preparing future generations for careers in tech-based businesses.
Scaling businesses account for the majority of net job creation in the UK and their annual turnover is around £1.2 trillion, highlighting the opportunity afforded to Scotland’s economy by investing in the drive to turn research findings into high-growth start-ups.
The Scottish Government is fostering and supporting entrepreneurial talent as part of strategic investment to capitalise on Scotland’s reputation as a start-up nation. The economic opportunities presented by this are enormous.
MS FORBES
Our universities and colleges are the engines of innovation. They are known the world over as the home of some of the greatest ideas and inventions ever made and can present real solutions to the challenges we face.
This new investment underlines our commitment to realising the economic potential of the incredible work taking place across Scottish universities and colleges.
Deputy First Minister @_KateForbes has unveiled initiatives to help university and college researchers commercialise their findings.
— Scottish Government Finance and Economy (@scotgoveconomy) June 14, 2025
Backed by £4.4 million, four projects will help academics attract investment and develop business skills.
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The world’s leading entrepreneurial economies are often powered by universities with strong entrepreneurial cultures. This is an ambitious package which positions Scottish institutions as drivers of start-up creation and growth.
CHIEF ENTREPRENEUR ANA STEWART
I look forward to collaborating with universities to maximise the impact of this funding.
We are pleased to welcome the Scottish Government’s continued investment in universities as engines of economic growth through excellent research, innovation and production of high-quality skills. This new Proof of Concept Fund will help to translate academic innovation into real-world economic and social impact.
PROFESSOR SIR JIM MCDONALD, PRINCIPAL AND VICE-CHANCELLOR, UNIVERSITY OF STRATHCLYDE
As the lead institution for the Spinout Pipeline Project, and a leading entrepreneurial campus, the University of Strathclyde is also pleased to continue to play a central role in strengthening Scotland’s entrepreneurial ecosystem.
By harnessing the collective expertise of our universities, we aim to accelerate the journey from breakthrough ideas to market-ready ventures – creating high-value jobs, attracting investment, and supporting the next generation of innovators.
Background
Applications to the Proof of Concept Fund are open. The establishment of this initiative was a commitment in Programme for Government 2025-2026.
Since 2011, Scottish universities have helped to produce 240 spin-outs.
This includes Neuranics, a 2021 joint spinout from University of Edinburgh and Glasgow, which has developed state-of-the-art sensors used across a variety of sectors, including in healthcare and gaming, and has raised $8 million to accelerate its growth. The company is also backed by an £800,000 grant from Scottish Enterprise.
Another, Microplate Dx, is a multiple award-winning spinout from Strathclyde, developing novel solutions to the global threat of antimicrobial resistance.
