From Research to Business Model

University Spin-offs

The Basics

What's a Spin-off?

University spin-offs are startups typically founded by students or researchers to commercialize innovative technologies or discoveries developed within academic institutions. While not all startups linked to universities qualify as official spin-offs, the term is often used broadly to include any venture emerging from a university setting, whether or not it’s based directly on academic research or intellectual property (IP).

Switzerland is home to some of the world’s top universities, such as ETH Zurich, EPFL, and the University of Zurich (UZH). Despite this strong foundation, the country’s academic spin-off ecosystem has yet to reach its full potential. In particular, universities of applied sciences (UAS) lag behind in support structures, technology transfer resources, and access to funding, resulting in fewer successful spin-offs from these high-potential institutions.

Challenges Facing Spin-offs in Switzerland

Fragmented Intellectual Property (IP) Policies

Navigating IP rights is a major challenge for academic entrepreneurs in Switzerland. In most cases, inventions developed within the scope of university employment belong to the institution. While universities like ETH and EPFL have dedicated technology transfer offices, these often rely on standard contracts that may not reflect the unique needs of each startup. Licensing typically involves royalties or equity, leading to disputes over valuation and ownership. Public funding bodies like Innosuisse and the SNSF can add further constraints.

Limited Access to Early-Stage Funding

Access to pre-seed and seed capital remains a major bottleneck for many spin-offs. While public programs such as Innosuisse offer valuable support, funding is often tied to complex application processes and doesn’t cover all early-stage needs. Many teams also lack investor networks or industry connections, making it difficult to attract private capital or validate products through pilot projects—often resulting in failure during the “valley of death.”

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Disparities Between Research Universities and UAS

Top institutions like ETH Zurich, EPFL, and UZH benefit from mature entrepreneurial ecosystems and extensive support networks. In contrast, universities of applied sciences often lack structured spin-off support, IP protection resources, and access to capital. This is despite their strengths in applied research and innovation with significant market relevance.

Gender Inequality in Academic Entrepreneurship

Female founders remain significantly underrepresented in Swiss spin-offs. At technical universities like ETH and EPFL, women account for less than 20% of startup founders. Structural barriers, gender stereotypes, and unequal access to mentorship and funding continue to pose challenges. While some targeted programs exist, more comprehensive and scalable efforts are needed to close the gender gap in academic innovation.

Lack of Data and Transparency

There is a shortage of consistent, comprehensive data on spin-off activity in Switzerland—especially from UAS. While top universities report detailed figures on startup creation, success rates, and demographics, many institutions do not. This lack of transparency limits effective policy design, benchmarking, and ecosystem development, particularly when it comes to tracking gender equity or industry-specific trends.

Better Policies Needed

Unlocking Switzerland’s Full Spin-off Potential

To unlock the full potential of Switzerland’s academic innovation landscape, targeted actions are needed:

  • Create cross-university platforms to connect spin-off teams across institutions, disciplines, and sectors
  • Simplify legal frameworks for technology transfer and IP licensing to reduce barriers to commercialization
  • Expand funding mechanisms for early-stage academic ventures, including seed grants and investor-matching programs
  • Enhance support at universities of applied sciences, including dedicated transfer offices and startup incubators
  • Implement targeted gender equity programs to increase participation of women in science-based entrepreneurship
  • Standardize data collection and reporting across all higher education institutions to support evidence-based policymaking

 

 

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