Most attempts by universities to launch "spin out" companies are facing failure, according to a new report.

Research published by the Economic and Social Research Council found that many universities are failing to capitalise on their research.

Experts at Nottingham University Business School concluded that only a tiny proportion of spin out companies succeed.

The findings will come as a disappointment to the Treasury, where moves to boost the entrepreneurial culture on university campuses have been a key aim.

Ministers had hoped that closer links between universities and the business world will improve the UK's economic competitiveness.

The recent government-commissioned Lambert report also set out a series of ways in which universities could make more of their intellectual property.

But Wednesday's report suggested that the plans are yet to prove a big success.

"Universities are tending to focus on creating businesses rather than creating wealth," said Professor Mike Wright.

"The proportion of university spin-out companies that succeed is tiny. Unless universities are prepared to back their spin outs with appropriate resources, most will continue to fail."

He added that the research had found that successful spin out activity depended on the level of commitment shown by universities to achieving successful technology transfers.

"At present there is a mismatch between the aims espoused and universities' ability to deliver," said Professor Wright.

"Universities must consider the skills, resources and networks they need and begin to put these in place."

The current outcomes could be improved if universities were more aware of the factors and processes which promote successful spin-out activity, found the report.

It said that the research phase, opportunity phase, pre-organisation phase, re-orientation phase and sustainable high-growth phase were key to a successful spin out.

Other key issues include access to finance, having sufficient time to devote to the project and the availability of critical infrastructure.