Leeds University is to hand over the task of technology transfer – developing academic work into commercial products – to a stock market listed company.

In a first for the UK, the university has set up in partnership with Axiomlab, a Manchester-based technology investment company which has an office in Leeds.

Axiomlab – listed on the Alternative Investment Market – will set up a new company called Techtran which will operate from Leeds University's Innovation Centre on Clarendon Road.

The university has also set up a dedicated intellectual property division to protect the rights.

Academics will first take their ideas to a newly formed intellectual property division at the university, before going to Techtran for help on business strategy and funding.

Equity in the new companies will be shared between the inventor, the university and Axiomlab.

University vice-chancellor Sir Alan Wilson said: "All our universities are facing the same challenge – of making their greatest possible contribution to wealth creation and the growth of a knowledge-based economy. We believe this is a unique response to that challenge. 

"Our partners bring great strengths, qualities, knowledge and business acumen. Above all, they can operate in the market in a way that is simply not open to the university as a publicly-funded body with charitable status."

Funding for the 'spin-out' firms will continue to be sourced from either the White Rose Technology Seedcorn Fund – jointly operated by the region's major universities – or Forward Group, the Leeds University fund launched in 1999 which is trying to raise £30m for a new venture capital fund.

Director at Axiomlab, Alan Aubrey, said: "Our focus will be on developing and planning the implementation of a clear market strategy by generating early contact with potential customers to secure those significant first sales. We will also help the entrepreneur to identify management needs and secure hires for the company once funding is in place."

Leeds University has been successful with a number of spin-out companies including geographical information systems company GMAP and mobile components firm, Filtronic.