Tighter rules for college spin-out companies

TIGHTER rules are being introduced around how third-level colleges manage the transformation of research into a successful commercial product.

It follows a review that found a “strong foundation of good practice” but also gaps and inconsistencies in how the process is overseen at both national and individual college levels.

Among the criticisms is the lack of attention, if any, paid by most colleges to the allocation of shares in a campus spin-out company.

The higher-education sector has been under increasing pressure to focus on research that will translate into jobs and investment for the benefit of country. But issues arise over who owns the intellectual property (IP) and how any benefits are shared between the institution – which has invested taxpayers’ money – and the researchers.

The Dáil Public Accounts Committee (PAC) found last year that it was impossible to decide whether the sale of three campus spin-out companies brought to its attention represented value for money for the taxpayer. Among the examples cited at PAC hearings was Waterford IT software company FeedHenry, which was sold for €63.5m, out of which the college received €1.3m.

Subsequently, the Higher Education Authority (HEA) commissioned the review, in partnership with Knowledge Transfer Ireland (KTI), the national office linking business with research.

The Review of Intellectual Property Management and Conflicts of Interest makes 10 recommendations, implementation of which has started.