Region's universities rush to become seats of earning

Business Correspondent Jonathan Jones looks at some of the work going on in the region's institutions to develop the products of the future.

INITIATIVES in the North-East's five universities are turning graduates into entrepreneurs and rekindling the spirit of enterprise that once made the region the cradle of innovation.

From computer software and online music websites to genetic fingerprinting for trees and sports shoes, staff at the region's universities and their graduates are at the forefront of research.

Such is the growing demand for facilities, thatuniversities are spending millions of pounds on developing incubator units, where bright ideas can be turned into viable products.

At the University of Teesside, for instance, 25-fully equipped start-up business units for graduate entrepreneurs have been established, clustered together in small groups to provide networks of like-minded people.

So far, the Teesside University scheme has led to the creation of 45 companies, helping to provide employment for more than 80 people.

That triumph is being emulated in Newcastle, Durham and Sunderland.

And such is the success of the universities in stimulating enterprise, that the Government is attempting to harness that expertise through its Science Enterprise Challenge Initiative, which aims to encourage the transfer of science and technology innovation to the business sector.

In this region, such work is being carried out by the North-East Centre for Scientific Enterprise (NECSE), involving all five of the region's universities, but based at Durham University's Mountjoy Research Park.

The NECSE is one of a network of 12 science enterprise centres established by the Department of Trade and Industry and the Office of Science and Technology to promote an entrepreneurial culture in the science and engineering faculties of the UK's universities and to enhance the exploitation of intellectual property generated.

Since it was formed in 2000, NECSE has worked with Durham University on 80 commercialisation projects, generating 11 businesses and creating more than 50 jobs.

A spokeswoman for Durham University said: "The businesses created from the work of NECSE include biotech company Creative Gene Technology, materials treatment business Surface Innovations Ltd and Evolving Generation, which develops lightweight high-efficiency electrical generation equipment associated with renewable energy production, especially windpower."

Another company spun out from Durham University is Durham Scientific Crystals (DSC), which grew from the university's research in making semi-conducting crystals.

The crystals are used in medical imaging, security screening and non-destructive testing.

DSC has discovered how to produce semi-conducting crystals from vapour instead of liquid, and hopes to gain a share of the £10m world market for the technology within four years.

Such success would emulate that of x-ray specialists Bede plc, now based in multi-million pound premises at Belmont Business Park on the outskirts of Durham, but which started as the result of world-leading research at the university. It floated on the Stock Exchange in November 2000 and employs more than 100 staff at its Durham headquarters.

DSC hopes to create another eight to ten jobs in the near future, the majority of which will be for graduates.

The crystals are still being grown in the university's laboratories.

Many of the businesses established at the region's universities are linked to teams of business advisors, who can provide support for the flourishing firms.

One such advisor is Maurice Tinkler, graduate incubation manager at the University of Teesside.

He said: "It is a very competitive marketplace and it's not particularly easy to establish a new business venture.

"We encourage graduate businesses to be independent and self-sufficient as soon as possible after their creation.

"The aim is to retain graduates in the region and encourage companies to take on board new technologies, particularly in areas of the university's strengths, such as animation, information communications technology, computer games and design."

Business incubation schemes place universities at the heart of the region's economic future and provide enterprising environments in which graduates, industry and academics can develop new, high-technology, high-growth companies.

One such company is Onisoft, established by Canadians Paul Dolhai and Doug Wolff, who came to Teesside University to study computer aided graphic design.

They launched their business in November last year, and employ 17 full and part-time staff.

Mr Wolff said: "The biggest thing the university did for us was to provide access to skilled and talented people at all levels. From lecturers to students, to staff and mentors, the university allows us to find the people we need whenever we need them.

"Toss in a place to live and computers to use, and it has proved the bedrock of our success."

Only last month their success, along with that of the university's Virtual Reality Centre, which is a leading provider of virtual reality and 3D technology to the business sector, and fellow graduate company Yuzu, which specialises in technical design solutions, was recognised at a reception in the House of Commons organised by SET for Britain, which promotes science, engineering and technology to the general public.

Similarly, a University of Sunderland pilot project, Phydos.com, established to challenge some of the Internet's major music websites, has proved a hit since staff and ex-staff at the university established it.

The company, now based in Richmond, North Yorkshire, went online in December last year, but is already on its way to becoming one of the largest providers of music and media products in Europe.

It has been helped by the university's Intelligent Systems Solutions and Business Development teams, and is developing a service called PhysicalDownloads to create on-demand CDs, including new artist recordings, music and media-related information, educational content and other electronically stored data.

Jonathan Barkass, chief executive of Phydos and a former research associate at the University of Sunderland, said: "We are en-route to becoming one of the largest online retail stores for music and media products in Europe and we are expanding our catalogue by around 20,000 titles a week.

"The site has enormous potential and we anticipate it could revolutionise the world of back-catalogue music."

But it is Newcastle and Northumbria Universities that stand head and shoulders above the rest when it comes to sharing ideas with business.

Newcastle University alone has spun out about 30 companies since 1985, worth more than £50m and creating about 100 jobs.

It was recently named one of the UK's top universities for technology transfer following the sale of spin-off company Novacastra Laboratories for £35m, to Vision BioSystems in July last year, which netted the university £5m.

The company, established by Wilson Horne, a former professor of pathology at Newcastle University, was a world-leading manufacturer of antibodies, probes and kits used in cancer detection.

As a result of this success, Newcastle University has set itself a target of creating seven to ten spin-off companies a year.

Dr Douglas Robertson, director of business development at the university, said: "The sale of Novacastra goes to show how important research-intensive universities like Newcastle are to the UK and regional economies.

"Spinning out companies from our powerful research base is helping to create sustainable jobs and wealth.

"The companies we are setting up today, could be the Novacastras of tomorrow."

Likewise, spin-off computer software company Arjuna Technologies, launched by five computer scientists who had developed a programme to improve the reliability of e-business, was snapped up by US company Bluestone for £9m and became part of computer firm Hewlett Packard.

Other spin-off companies include Bioprofiles, established by evolutionary geneticist Dr Kirsten Wolff, and her research colleague Dr Marie Hale.

The company is exploiting DNA fingerprinting technology to identify trees whose roots are causing houses to subside.

Meanwhile, Northumbria University is concentrating its efforts on its degree course in Design for Industry, which enjoys an international reputation for its teaching and the success of its graduates.

These include the designers of the revolutionary Apple iMac computer and Jaguar S-Type.

A key feature of the course is its links with industry, with students benefiting from work on live projects with global organisations such as Nokia, Electrolux, Zanussi and many local small to medium enterprises.

One product to come out of the course is the Generics Group's lightweight sports shoe, known as the torque boot, which can reduce sports injuries.

Its inventor, Iain Sabberton, started the project as an undergraduate on the design course in collaboration with Generics, eventually joining the business after his graduation.

Players at Blackburn Rovers FC tested the boot and have been positive about its benefits.

Currently at the prototype stage, Generics is talking to leading sports shoe manufacturers with the view to launching it commercially.

Mr Sabberton, now at Innovia, in Cambridge, said: "I am delighted that the torque boot has received endorsement from within the football industry.

"It seems that once a player tries on and uses the boot, its benefits become self-evident. We just need to close negotiations with a third party to be able to deliver this exciting product to market."