University Startups and Incubators: It’s a Win-Win Situation

In more ways than one, science and academia have undergone changes. Research is being communicated faster than ever. China has overtaken the USA as the largest publisher of new scientific research. As more and more publishers take the open access route, the global accessibility to cutting-edge research increases leaps and bounds. With the breakneck pace at which academia is growing, it is imperative that universities around the world find newer ways to showcase the impact of their research and attract the best academic talent internationally.

Let’s not forget about the immense potential for academic research output to translate into tangible impact on human lives. Think portable blood glucose monitors, pacemakers, hearing aids, portable batteries, walking-assisting robotic suits, etc. Given the tremendous opportunities for the commercialization of research activities, universities worldwide are moving away from traditional approaches and are translating research from the confines of the laboratory into commercial uses in the real world, where research can be monetized. Welcome to the world of university startups!

A university startup is nothing but a platform for early entrepreneurship. Although earlier frowned upon for its supposedly materialistic undertones, the “startup” culture is increasingly being recognized by several universities as a means for innovation, economic development, and global recognition. In regions with high research output such as China, Japan, Korea, the USA, Germany, and the Netherlands, university startups can be a major driver of the economy if nurtured sufficiently. In the UK, the Research Excellence Framework (REF) assesses the quality of research in higher institutions and allocates research funds accordingly. One of the key determinants of research quality according to the REF is the “impact” of the research beyond academia. A well-conceived university startup can go a long way in securing research impact points for the institution.

The university startup culture also benefits multiple stakeholders. Modern-day university students, at least in economically developed countries, want more than academic degrees and campus life—opportunities to launch new businesses; provide and help realize marketable ideas; collaborate with funders, investors, and other budding entrepreneurs; develop new products; and spark social movements. A university startup can be just the right platform for ambitious, smart, and motivated students to market their ideas. The more a research organization invests in and showcases its startup culture, the more (and better) talent it can attract.

Universities can also provide students with specialized forums and spaces for on-campus collaborations between academia and industry. These “incubators” are designed to allow uninhibited exchange of ideas on campus. Incubators can help motivated students start meaningful conversations and networks with fellow entrepreneurs on campus, angel investors, venture capitalists, and even companies looking to recruit the crème de la crème of the industry. A strong startup culture and well-thought-out incubator spaces can help universities prepare students for stellar careers ahead. For the university, this translates to greater reputation, visibility, and market value.

Aside from the usual suspects like Harvard, MIT, Stanford, and Berkeley in the US, universities in Asia, such as University of Tokyo, National University of Singapore, Chung-Ang University and the Ulsan National Institute of Science and Technology in Korea, and even the Indian Institutes of Technology, have strong startup cultures. The industry–academia collaboration programs of universities are largely mediated by a specialized department (in South Korea, it is referred to as the Industry Academic Collaboration Unit). These universities also have technology liaison offices that are mainly responsible for commercialization of the university’s research by writing patents and actively collaborating with investors and entrepreneurs.

That said, while the startup culture offers tremendous industry exposure to universities and students alike, its execution should be monitored closely to avoid commercialization too early or too much and ensure that basic research does not take a backseat to profit-making.

In summary, investing in startups and incubators is definitely the way forward for universities with a modern outlook. Such ventures can go a long way in improving university impact metrics, improving visibility, and attracting the best global talent.