University spin-offs (also known as university spin-outs)[1][2] are companies that transform technological inventions developed from universityresearch that are likely to remain unexploited otherwise.[3] They are a subcategory of research spin-offs. Prominent examples of university spin-offs are Genentech, Crucell, Lycos and Plastic Logic. In most countries, universities can claim the intellectual property (IP) rights on technologies developed in their laboratories. In the United States, the Bayh–Dole Act permits universities to pursue ownership of inventions made by researchers at their institutions using funding from the federal government, where previously federal research funding contracts and grants obligated inventors (wherever they worked) to assign the resulting IP to the government. This IP typically draws on patents or, in exceptional cases, copyrights. Therefore, the process of establishing the spin-off as a new corporation involves transferring the IP to the new corporation or giving the latter a license on this IP. Most research universities now have Technology Licensing Offices (TLOs) to facilitate and pursue such opportunities.
University spin-offs typically go through a number of critical steps to develop the initial invention into a successful business venture. The following steps are critical in creating a successful spin-off (not necessarily in this order).[4]
Developing a successful Business Model Canvas for the spin-off; a business model depicts the rationale of how the spin-off will create, deliver and capture value.
Acquiring the first customers. The first customer, also called an early adopter, can provide candid feedback to help the spin-off refine future product releases and also provide access to a distribution channel or other forms of support.
Developing a fully functioning prototype of this new product; the prototype also serves to learn about how to produce, use and sell the new product.
Attracting startup funding to finance the development of prototypes and new products; this may involve acquiring financial resources from venture capital firms, angel Investors, banks, or other providers of early-stage financial capital.
Some universities generate substantially higher numbers of spin-offs than others.[5] Universities with high numbers of successful spin-offs:
draw on university-wide awareness of entrepreneurial opportunities and/or benefit from a strong entrepreneurship culture at the national or regional level;
have developed a university culture that thrives on entrepreneurial role models among their alumni and academic staff as well as successful spin-offs that serve as inspiring examples (e.g. Lycos at Carnegie Mellon University);
actively stimulate the development of entrepreneurial talent and help founders of spin-offs obtain access to investors, consultants and other forms of support; these activities are particularly critical in (e.g. continental European) countries that suffer from an entrepreneurial culture that is weaker than elsewhere (e.g. USA).[6]
Other issuesedit
University spin-off activity may give rise to potential conflicts of interest between commercial and academic work. In addition, the university's reputation may be at risk if founders of spin-offs act inappropriately.[7] Moreover, the antagonism between academic research and technology commercialization by way of spin-offs is likely to create fairness issues, for example regarding the distribution of royalties or equity. This antagonism can be managed by installing transparent procedures for the spin-off formation process that enhance fair treatment of all participants.[8]
Bird, B., Hayward, D.J., and Allen, D.N. (1993). Conflicts in the Commercialization of Knowledge: Perspectives from Science and Entrepreneurship. Entrepreneurship Theory and Practice, vol. 17(4): 57–79.
Clarysse, B., Wright, M., Lockett, A., Van de Velde, E., and Vohora, A. (2005). Spinning Out New Ventures: A Typology of Incubation Strategies from European Research Institutions. Journal of Business Venturing, vol. 20(2):183–216.
Di Gregorio, D. and Shane, S. (2003). Why Do Some Universities Generate More Start-Ups than Others? Research Policy, vol. 32(2): 209–227.
Klofsten, M. and Jones-Evans, D. (2000). Comparing Academic Entrepreneurship in Europe - The Case of Sweden and Ireland. Small Business Economics, vol. 14: 299–309.
Kondo, M. (2004). University Spinoffs in Japan: From University–Industry Collaboration to University–Industry Crossover. Report by National Institute of Science and Technology Policy (NISTEP). Tokyo: Yokohama National University.
Lindelöf, P., (2011), Formal institutional contexts as ownership of intellectual property rights and their implications for the organization of commercialization of innovations at Universities – Comparative data from Sweden and the United Kingdom International Journal of Innovation Management, 15(5), 1069-1092
Oliveira, M.A., Ferreira, J.J.P., Xavier, A., de Sousa, J.C.C.P., Meireles, G., Sousa, M., Tomperi, S., Torkkeli, M., Salmi, P., Tolsma, A., Ye, Q., Tzmrielak, D., van Geenhuizen, M. (2012). Spin-Up – Creating an entrepreneurship coaching and training program for university spin-offs. (Book: ISBN978-1-908272-68-3; CD: ISBN978-1-908272-66-9). http://www.spin-up.eu
Shane, S. (2004). Academic Entrepreneurship: University Spinoffs and Wealth Creation. Cheltenham, UK: Edward Elgar.
Slaughter, S. and Rhoades, G. (2004). Academic Capitalism and the New Economy. Baltimore: Johns Hopkins University Press.
Van Burg, E., Romme, A.G.L., Gilsing, V.A. and Reymen, I.M.M.J. (2008), Creating University Spinoffs: A Science-Based Design Perspective. Journal of Product Innovation Management, vol. 25: 114–128.
Vohora, A., Wright, M., and Lockett, A. (2004). Critical Junctures in the Development of University High-Tech Spinout Companies. Research Policy, vol. 33(1):147–175.
Wright, M., Clarysse, B., Mustar, P., and Lockett, A. (2007). Academic Entrepreneurship in Europe. Cheltenham, UK: Edward Elgar.
May 01, 2024
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University spin offs also known as university spin outs 1 2 are companies that transform technological inventions developed from university research that are likely to remain unexploited otherwise 3 They are a subcategory of research spin offs Prominent examples of university spin offs are Genentech Crucell Lycos and Plastic Logic In most countries universities can claim the intellectual property IP rights on technologies developed in their laboratories In the United States the Bayh Dole Act permits universities to pursue ownership of inventions made by researchers at their institutions using funding from the federal government where previously federal research funding contracts and grants obligated inventors wherever they worked to assign the resulting IP to the government This IP typically draws on patents or in exceptional cases copyrights Therefore the process of establishing the spin off as a new corporation involves transferring the IP to the new corporation or giving the latter a license on this IP Most research universities now have Technology Licensing Offices TLOs to facilitate and pursue such opportunities Contents 1 Critical steps in developing a spin off 2 Conditions for spin off creation 3 Other issues 4 Examples of university spin offs 5 See also 6 References 7 Further readingCritical steps in developing a spin off editUniversity spin offs typically go through a number of critical steps to develop the initial invention into a successful business venture The following steps are critical in creating a successful spin off not necessarily in this order 4 Developing a successful Business Model Canvas for the spin off a business model depicts the rationale of how the spin off will create deliver and capture value Acquiring the first customers The first customer also called an early adopter can provide candid feedback to help the spin off refine future product releases and also provide access to a distribution channel or other forms of support Developing a proof of concept or proof of principle that demonstrates that the invented method or new theory is probably useful in a particular application for example a new product Developing a fully functioning prototype of this new product the prototype also serves to learn about how to produce use and sell the new product Attracting startup funding to finance the development of prototypes and new products this may involve acquiring financial resources from venture capital firms angel Investors banks or other providers of early stage financial capital See Small Business Innovation Research for associated spin off funding opportunities Conditions for spin off creation editSome universities generate substantially higher numbers of spin offs than others 5 Universities with high numbers of successful spin offs draw on university wide awareness of entrepreneurial opportunities and or benefit from a strong entrepreneurship culture at the national or regional level have developed a university culture that thrives on entrepreneurial role models among their alumni and academic staff as well as successful spin offs that serve as inspiring examples e g Lycos at Carnegie Mellon University actively stimulate the development of entrepreneurial talent and help founders of spin offs obtain access to investors consultants and other forms of support these activities are particularly critical in e g continental European countries that suffer from an entrepreneurial culture that is weaker than elsewhere e g USA 6 Other issues editUniversity spin off activity may give rise to potential conflicts of interest between commercial and academic work In addition the university s reputation may be at risk if founders of spin offs act inappropriately 7 Moreover the antagonism between academic research and technology commercialization by way of spin offs is likely to create fairness issues for example regarding the distribution of royalties or equity This antagonism can be managed by installing transparent procedures for the spin off formation process that enhance fair treatment of all participants 8 Examples of university spin offs editCrucell Genentech Locus Biosciences Lycos Plastic Logic GoogleSee also editAngel investor Entrepreneurship Intellectual property Proof of concept Research spin off Spin off disambiguation Venture capitalReferences edit University spin outs the secrets of their success the Guardian 2014 12 09 Retrieved 2020 06 07 Michaels Daniel 2019 10 09 Europe s Old Universities Spin Out New Tech Companies Wall Street Journal ISSN 0099 9660 Retrieved 2020 06 07 Shane 2004 See for example Vohora et al 2004 Di Gregorio amp Shane 2003 Klofsten amp Jones Evans 2000 Kondo 2004 Clarysse et al 2005 Van Burg et al 2008 Wright et al 2007 Bird et al 1993 Shane 2004 Slaughter amp Rhoades 2004 Van Burg et al 2008 Further reading editThis further reading section may need cleanup Please read the editing guide and help improve the section March 2021 Learn how and when to remove this message Bird B Hayward D J and Allen D N 1993 Conflicts in the Commercialization of Knowledge Perspectives from Science and Entrepreneurship Entrepreneurship Theory and Practice vol 17 4 57 79 Clarysse B Wright M Lockett A Van de Velde E and Vohora A 2005 Spinning Out New Ventures A Typology of Incubation Strategies from European Research Institutions Journal of Business Venturing vol 20 2 183 216 Di Gregorio D and Shane S 2003 Why Do Some Universities Generate More Start Ups than Others Research Policy vol 32 2 209 227 Klofsten M and Jones Evans D 2000 Comparing Academic Entrepreneurship in Europe The Case of Sweden and Ireland Small Business Economics vol 14 299 309 Kondo M 2004 University Spinoffs in Japan From University Industry Collaboration to University Industry Crossover Report by National Institute of Science and Technology Policy NISTEP Tokyo Yokohama National University Lindelof P 2011 Formal institutional contexts as ownership of intellectual property rights and their implications for the organization of commercialization of innovations at Universities Comparative data from Sweden and the United Kingdom International Journal of Innovation Management 15 5 1069 1092 Oliveira M A Ferreira J J P Xavier A de Sousa J C C P Meireles G Sousa M Tomperi S Torkkeli M Salmi P Tolsma A Ye Q Tzmrielak D van Geenhuizen M 2012 Spin Up Creating an entrepreneurship coaching and training program for university spin offs Book ISBN 978 1 908272 68 3 CD ISBN 978 1 908272 66 9 http www spin up eu Shane S 2004 Academic Entrepreneurship University Spinoffs and Wealth Creation Cheltenham UK Edward Elgar Slaughter S and Rhoades G 2004 Academic Capitalism and the New Economy Baltimore Johns Hopkins University Press Van Burg E Romme A G L Gilsing V A and Reymen I M M J 2008 Creating University Spinoffs A Science Based Design Perspective Journal of Product Innovation Management vol 25 114 128 Vohora A Wright M and Lockett A 2004 Critical Junctures in the Development of University High Tech Spinout Companies Research Policy vol 33 1 147 175 Wright M Clarysse B Mustar P and Lockett A 2007 Academic Entrepreneurship in Europe Cheltenham UK Edward Elgar Retrieved from https en wikipedia org w index php title University spin off amp oldid 1142626100, wikipedia, wiki, book, books, library,
