The University System of Maryland plans to establish a $25 million fund to invest in startup companies created by students, faculty and recent graduates.

The system, which includes 12 of the state's public institutions, would invest $10 million in the Early Stage Investment Fund over four years. Another $15 million would come from the state, the system's foundation and other sources.

A Board of Regents committee approved the fund on Thursday. The full Board of Regents is expected to approve it on Friday.

The Maryland system is one of the nation's biggest spenders on research but lags behind other state university systems in spinning off companies. Officials are pushing to change that, in hopes of strengthening the state economy, keeping recent college graduates in the state and attracting top students and faculty.

The state has been investing for years in university-affiliated startups through programs such as the Maryland Industrial Partnerships. But the university system has not had a venture fund like the one officials are considering now.

Regent Gary Attman chairs a board committee that focuses on economic development.

"There's one glaring shortfall that this addresses, which is access to capital," he said. "A number of us felt it's time for us to put our money where our mouth is."

Another regent, Robert L. Pevenstein, hopes the new fund will accelerate the push to spin off more companies.

"Having an investment fund managed by a professional has been shown in other instances around the country to really move this commercialization along," he said.

Tom Sadowski, who started in the new role of vice chancellor for economic development at the university system this year, updated the regents Thursday on those commercialization efforts, including hundreds of university-affiliated companies created in the past few years.

"We've really started to turn the ship around," he said.

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