Spin-offs: Europe’s innovation edge is hiding in plain sight

A quiet revolution is happening across Europe’s research institutions. From university labs to public research centres, high-impact startups are emerging, bringing breakthroughs in health, deep tech, green energy, and AI to market. Yet many of these “spin-offs” remain overlooked.

A new report from the StepUp Startups project makes a clear case: if Europe is serious about global competitiveness, tech sovereignty, and innovation leadership, spin-offs must move from the sidelines to the spotlight.

What the report reveals

Titled “Spin-offs – Reinforcing a Vector of Value Creation for the EU-27,” the report maps out the current landscape and provides a data-backed set of recommendations to unlock the true potential of research-born startups.

Here are some key insights:

• Over 8,500 spin-offs were identified across the EU-27, but their distribution is fragmented and uneven.
• Spin-offs currently represent just 8% of EU high-growth startups, despite being highly innovative and IP-rich.
• Structural barriers—like inconsistent IP policies, tech transfer inefficiencies, and lack of targeted early-stage funding—are stifling their growth and market uptake.

While the challenges are clear, the report strikes an optimistic tone: spin-offs are not a missed opportunity; they are a ready-made one. With coordinated support, they could be a pillar of Europe’s startup strategy.

A strategic opportunity for Europe

For founders, spin-offs offer a pathway to transform groundbreaking research into viable businesses, often backed by strong scientific validation and access to public R&D infrastructure.

For VCs and investors, they’re a largely under-tapped segment filled with deep tech and high-IP ventures that are already de-risked by academic due diligence and public funding.

And for policymakers, spin-offs represent a proven route to strengthen regional innovation ecosystems, foster tech sovereignty, and ensure Europe remains competitive in sectors where it wants to lead—climate tech, AI, health, and advanced manufacturing.

Recommendations that matter

The StepUp Startups report doesn’t just highlight the problems—it provides actionable solutions, including:

• Establishing EU-wide guidelines for IP and spin-off formation to streamline legal and equity negotiations.
• Strengthening tech transfer offices and innovation intermediaries, particularly in underrepresented regions.
• Creating tailored financing instruments for research-based startups, especially at pre-seed and seed stages.
• Promoting cross-border networks and platforms to connect PROs, spin-offs, corporates, and investors.

If implemented, these steps could accelerate the growth of thousands of startups currently stuck in the pipeline between lab and market.

Join the Momentum

The EU doesn’t need to start from scratch. Spin-offs are already here—and thriving in places where support is smart, aligned, and consistent. The next step is scaling that success across all 27 Member States. Click here to download the full report “Spin-offs – Reinforcing a Vector of Value Creation for the EU-27“!

Also, don’t miss our related coverage of the StepUp Startups Stage that took part at the EU-Startups Summit 2025, where this initiative came to life through startup showcases, expert panels, and policy discussions, proving that the momentum is already building.

Whether you’re shaping policy, building startups, or investing in Europe’s tech future, this report is your roadmap. Spin-offs aren’t a future ambition—they’re a present-day opportunity. The question is: will the EU help to scale them?

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