ImpressãO Spin Off Determinants Ans Consequences

UNIVERSITYSPINOFF ACTIVITIES

UNIVERSITYSPINOFF ACTIVITIES

Determinants and consequences A conceptual framework

Aluno: Tiara Bicalho

Summary

The objective of this study is to explain different aspects of the university spinoff behavior in a coherent way and to underline the importance of this activity for the economic development.


Spinoff Concepts

Contextualization

The Six Streams

University Spinoff Framework

Conclusion

Contextualization

Universities have come to be highly valued in terms of the economic potential of their research efforts . There is a pressure on universities to generate return from government research support.

US Context

• Federal government in US provides more than $27.7 billion annually to the conduction of scientific research;

• The average research university in the US generates 1.91 spinoffs per annum, but it masks a skewed distribution (MIT spawned 31 spinoffs in one year alone).

• Federal government in US provides more than $27.7 billion annually to the conduction of scientific research;

• The average research university in the US generates 1.91 spinoffs per annum, but it masks a skewed distribution (MIT spawned 31 spinoffs in one year alone).

Importance of Spinoff Activity

• Stimulate economies by spurring products development;

• Create new industries;

• Contribute to employment and wealth creation;

• Use of knowledge in technological innovation.

• Stimulate economies by spurring products development;

• Create new industries;

• Contribute to employment and wealth creation;

• Use of knowledge in technological innovation.

Summary

The objective of this study is to explain different aspects of university spinoff behavior in a coherent way and to underline the importance of this activity for the economic development.


Spinoff Concepts

Contextualization

The Six Streams


Conclusion

Roberts and Malone (1996)

Challenge: identifying and replicating the processes that facilitate swift movement of technology from the ivory tower of academia to the front-line of industry .

Nicolaou and Birley (2003a)Nicolaou and Birley (2003a)

Spinoff Concepts

Mechanism in which government seek to generate economic impact from their R&D by transferring technology from the R&D function to a commercial organization.

Mechanism in which government seek to generate economic impact from their R&D by transferring technology from the R&D function to a commercial organization.

Define spinoffs based on the parent R&DOrganization: government R&D laboratory, the university, universityresearch center, and private R&D organizations.

Define spinoffs based on the parent R&DOrganization: government R&D laboratory, the university, universityresearch center, and private R&D organizations.

Steffensen (1999) and Rogers (2001)

•The transfer of a core technology from an academic institution into a new company;

•The founding member(s) may include the inventor academic(s) who may or may notbe currently affiliated with the academic institution.

•The transfer of a core technology from an academic institution into a new company;

•The founding member(s) may include the inventor academic(s) who may or may notbe currently affiliated with the academic institution.

Summary



Spinoff Concepts

Contextualization

The Six Streams


Conclusion

The Six Streams

IndividualCharacteristics

Organizational Resources

InstitutionalCaracterístics

(Culture)

Environmental Factors

University Spinoff Activity

Performance&

Development

EconomicDevelopment

The existing literature on academic spinoff can be categorized into six separate streams that captures the determinants and consequences of spinoff activity.

Determinants

Consequences

The Six Streams

Summary


Institutional Characteristics


Individual Characteristics

Performance and Development

Economic Development

Spinoff Concepts

Contextualization

The Six StreamsIndividual Characteristics

Spinoff behavior is a reflection of individual actions and therefore is largely due to the personality, ability, career choice, or willingness of the individual to engage successfully in entrepreneurial behavior.

Roberts (1991)Roberts (1991)

•Academic entrepreneurs with outgoing, extroverted personalities were more likely to engage in spinoff activity;• Personal characteristics such as the need for achievement, the desire for independence and an internal locus of control is common between successful entrepreneurs and scientists.

•Academic entrepreneurs with outgoing, extroverted personalities were more likely to engage in spinoff activity;• Personal characteristics such as the need for achievement, the desire for independence and an internal locus of control is common between successful entrepreneurs and scientists.

Audretsch’s (2000)Audretsch’s (2000)

University entrepreneurs tended to be older and more scientifically experienced than ‘‘typical’’ high-technology entrepreneurs.

University entrepreneurs tended to be older and more scientifically experienced than ‘‘typical’’ high-technology entrepreneurs.

The Six Streams

Summary







Spinoff Concepts

Contextualization

The Six StreamsOrganizational resources

There are links between spinoff activity and the level and nature of research funding, the quality of the researchers, the nature of the research within the university, and the presence of technology incubators and technology transfer offices.

Level and nature of research fundingLevel and nature of research funding •The number of spinoff companies created from UK universities was associated with R&D expenditure;• Industry-funded faculty members tend to be more commercially productive than theirgovernment-funded counterparts.

•The number of spinoff companies created from UK universities was associated with R&D expenditure;• Industry-funded faculty members tend to be more commercially productive than theirgovernment-funded counterparts.

Nature of the researchNature of the research

The nature of university science and engineering funding with a particular orientation in the biological sciences, computer science and chemistry disciplineshad a positive and statistically significant effect on spinoff formation rates.

The nature of university science and engineering funding with a particular orientation in the biological sciences, computer science and chemistry disciplineshad a positive and statistically significant effect on spinoff formation rates.

Quality of the researchersQuality of the researchers

Faculty members who develop leading edge innovations may wish to earn economic rents on valuable asymmetric information. It may be easier for academics from top tier universities to assemble resources to create start-ups for reasons of credibility.

Faculty members who develop leading edge innovations may wish to earn economic rents on valuable asymmetric information. It may be easier for academics from top tier universities to assemble resources to create start-ups for reasons of credibility.

The Six StreamsOrganizational resources

Technology incubatorsTechnology incubators

• There is a need for universities to adopt a proactive highly selective and supportive model for spinoff development;

• 3 Incubation Models: Low Selective: maximizing the nº of spinoffs created;Supportive : generate revenue from spinoffs ;Incubator model: financial gain at the point of exit.

• There is a need for universities to adopt a proactive highly selective and supportive model for spinoff development;

• 3 Incubation Models: Low Selective: maximizing the nº of spinoffs created;Supportive : generate revenue from spinoffs ;Incubator model: financial gain at the point of exit.

Technology transfer offices (TTO)Technology transfer offices (TTO)

•TTO’s role :

Assuming the role of principal decision maker while they evaluate the invention;Making arrangements for the legal protection of the technology;Directing the entrepreneurs to venture capitalists;Establishing their representation on the board of the company.

•TTO’s role :

Assuming the role of principal decision maker while they evaluate the invention;Making arrangements for the legal protection of the technology;Directing the entrepreneurs to venture capitalists;Establishing their representation on the board of the company.

Having the right mix of governance structures (i.e. matrix structures), processes (i.e. seed capital fund, patent protection, business plan and new venture development services) and context contributes to a successful generation of spinoff companies..

The Six Streams

Summary







Spinoff Concepts

Contextualization

The Six StreamsInstitutional Characteristics

Universities with cultural norms that support commercialization activity will have higher levels of commercialization and higher rates of spinoff activity.

O’Shea at al. (2007)O’Shea at al. (2007)

MIT founding mission and institutional support towards entrepreneurial activities played an important role in the development of academic entrepreneurship.

MIT founding mission and institutional support towards entrepreneurial activities played an important role in the development of academic entrepreneurship.

Siegel et al.(2004)Siegel et al.(2004)

To foster climate of entrepreneurship in academic context :university policies to facilitate UITT;increasing the level of resources to UITT;working to eliminate cultural barriers that impede the UITT process.

To foster climate of entrepreneurship in academic context :university policies to facilitate UITT;increasing the level of resources to UITT;working to eliminate cultural barriers that impede the UITT process.

George at al. (2006)George at al. (2006) The extent to which institutional factors were viewed as being supportive (internal norms, TTO receptiveness), the more likely scientists were prepared to participate in technology transfer activity.

The extent to which institutional factors were viewed as being supportive (internal norms, TTO receptiveness), the more likely scientists were prepared to participate in technology transfer activity.

Ndonzuau et al. (2002)Ndonzuau et al. (2002)

Some cultural factors such as the ‘publish or perish’ drive, the ambiguous relationship of researchers to money, and the ‘disinterested’ nature of academic research to industry are seen as inhibitors to the academic spinoff activity.

Some cultural factors such as the ‘publish or perish’ drive, the ambiguous relationship of researchers to money, and the ‘disinterested’ nature of academic research to industry are seen as inhibitors to the academic spinoff activity.

The Six Streams

Summary







Spinoff Concepts

Contextualization

The Six StreamsEnvironmental FactorsInstitutional Characteristics

Four factors that could impact spinoff activity: access to venture capital, legal assignment of inventions, knowledge infrastructure in the region, and industry structure.

Access to venture capitalAccess to venture capital

• Recent research shows that access to venture capital is the most important resource constraint faced by universities;

• Industry functioning as venture capitalists via joint venture spinoffs may facilitate the emergence of university spinoffs as they have the necessary financial resources and commercial expertise.

• Recent research shows that access to venture capital is the most important resource constraint faced by universities;

• Industry functioning as venture capitalists via joint venture spinoffs may facilitate the emergence of university spinoffs as they have the necessary financial resources and commercial expertise.

Legal assignment of inventionsLegal assignment of inventions

• The nº of patenting and licensing activities has increased since the Bayh-Dole Act whereby inventions were assigned to academic institutions rather than individual inventors;

• In Europe, some national policies which allow inventions to be assigned to academic inventors, have inhibited spinoff activity.

• The nº of patenting and licensing activities has increased since the Bayh-Dole Act whereby inventions were assigned to academic institutions rather than individual inventors;

• In Europe, some national policies which allow inventions to be assigned to academic inventors, have inhibited spinoff activity.

Knowledge and industry infrastructure Knowledge and industry infrastructure

• The entire network infrastructure of entrepreneurial managers, customers and suppliers, tend to be an important factor to starting a university spinoff firm;•The phenomenon of entrepreneurial universities supported by incubating technopole regions with a strong commercial tradition is a crucial element to the spinoff activity.

• The entire network infrastructure of entrepreneurial managers, customers and suppliers, tend to be an important factor to starting a university spinoff firm;•The phenomenon of entrepreneurial universities supported by incubating technopole regions with a strong commercial tradition is a crucial element to the spinoff activity.

The Six Streams

Summary







Spinoff Concepts

Contextualization

The Six StreamsPerformance and Development

Spinoffs modify, refine and develop their business model as they improve their knowledge of resources and opportunities. Spinoff development is an iterative and non-linear process.

Phases of DevelopmentPhases of Development

• New technology firms are more able to survive if they exploit radical technologies and if they posses patents with a broad scope;•Linkages to investors were found to be important determinants of whether the business received venture funding and in reducing the likelihood of spinoff failure.

• New technology firms are more able to survive if they exploit radical technologies and if they posses patents with a broad scope;•Linkages to investors were found to be important determinants of whether the business received venture funding and in reducing the likelihood of spinoff failure.

PerformancePerformance

Vohora et al. (2004)

Vanaelst et al.(2006)

Opportunity Recognition Entrepreneurial Commitment Credibility Sustainability

The Six Streams

Summary







Spinoff Concepts

Contextualization

The Six StreamsEconomic Development

University spinoffs are an important subset of start-up firms because they are an economically powerful group of high-technology companies.

• MIT graduates had founded 4,000 companies by 1997, creating 1.1 million jobs worldwide and generating annual sales of $232 billion;

•Spinoffs from American academic institutions between 1980 and 1999 have contributed 280,000 jobs to the US economy and $33.5 billion in economic value-added activity.

• MIT graduates had founded 4,000 companies by 1997, creating 1.1 million jobs worldwide and generating annual sales of $232 billion;

•Spinoffs from American academic institutions between 1980 and 1999 have contributed 280,000 jobs to the US economy and $33.5 billion in economic value-added activity.

Economic Impact of Spinoff ActivityEconomic Impact of Spinoff Activity

Summary



Spinoff Concepts

Contextualization

The Six Streams


Conclusion


Summary



Spinoff Concepts

Contextualization

The Six Streams


Conclusion

Conclusion

• Policy makers and universities are increasingly seeking to understand how best higher educational institutions can contribute to both their traditional functions and the added function of making the regional or national economy more competitive.

• The conceptual framework presented should aid researchers in completing a much-needed assessment of the impact of organizational policies, practices and structures on university entrepreneurship.

• The framework presented suggests that university heads and policy makers can encourage and develop university entrepreneurship by using a comprehensive systems approach for the identification, protection and commercialization of university intellectual property.

• Policy makers and universities are increasingly seeking to understand how best higher educational institutions can contribute to both their traditional functions and the added function of making the regional or national economy more competitive.

• The conceptual framework presented should aid researchers in completing a much-needed assessment of the impact of organizational policies, practices and structures on university entrepreneurship.

• The framework presented suggests that university heads and policy makers can encourage and develop university entrepreneurship by using a comprehensive systems approach for the identification, protection and commercialization of university intellectual property.

References

O’SHEA et al. Determinants and consequences of university spinoffactivity: a conceptual framework. Springer Netherlands.2008

Roberts, E., & Malone, D. E. Policies and structures for spinning off new companies from research and development organizations. R&D Management.1996

Nicolaou, N., & Birley, S. Academic networks in a trichotomous categorisation of university spinouts.Journal of Business Venturing. 2003

Ndonzuau, F. N., Pirnay, F., & Surlemont, B. (2002). A stage model of academic spin-off creation.Technovation. 2002

George, G., Jain, S., & Maltarich, M. Academics or entrepreneurs: Entrepreneurial identity and invention disclosure behavior of university scientists. Paper presented at the University Technology Transfer and Commercialization of Research. 2006

O’SHEA et al. Determinants and consequences of university spinoffactivity: a conceptual framework. Springer Netherlands.2008

Roberts, E., & Malone, D. E. Policies and structures for spinning off new companies from research and development organizations. R&D Management.1996

Nicolaou, N., & Birley, S. Academic networks in a trichotomous categorisation of university spinouts.Journal of Business Venturing. 2003

Ndonzuau, F. N., Pirnay, F., & Surlemont, B. (2002). A stage model of academic spin-off creation.Technovation. 2002

George, G., Jain, S., & Maltarich, M. Academics or entrepreneurs: Entrepreneurial identity and invention disclosure behavior of university scientists. Paper presented at the University Technology Transfer and Commercialization of Research. 2006

Economy & Finance

ImpressãO Spin Off Determinants Ans Consequences