The Performance of University Spin-Offs: The Impact of Entrepreneurial Capabilities and Social Networks of Founding Teams during Start-Ups

Objectives: University spin-offs have increasingly received attention from academia, governments, and policymakers because they not only generate new innovations, productivity, and jobs the regional economies but also significantly improve university productivity and creativity (Hayter, 2013, Urbano and Guerrero, 2013). However, a lack of understanding of the contribution made by a founding team to a spin-off’s performance still remains within current studies. Employing a resource-based view theory and social networks approach, this paper addresses this gap by exploring university spin-offs in Spain. Prior work: University spin-off studies have concentrated on analysing entrepreneurial business models (Ndonzuau et al., 2002, Vohora et al., 2004b, Bower, 2003, Mets, 2010) to understand how the commercialization of research is undertaken to create a university spin-off. University spin-offs were also been analysed from the perspective of a university’s capabilities (Powers and McDougall, 2005), or capabilities and social networks of an established spin-off instead of the founding teams (Walter et al., 2006). Moreover, Vohora et al. (2004a) and Shane (2004) have suggested founders need to build capable teams, which must have entrepreneurial capabilities and qualitative social networks, to create effective university spin-offs. Both entrepreneurial capability and social network theory have been studied in prior entrepreneurship research, but have received less attention within the context of the university spin-offs (Gonzalez-Pernia et al., 2013). Approach: Utilising an internet-based survey, this paper explores entrepreneurial capabilities and social networks of founding teams in Spanish university spin-offs using quantitative data analysis. Basing upon resource-based view theory of Barney (1991) to study entrepreneurial capabilities of the founding teams, the research employ entrepreneurial technology, strategy, human capital, organizational viability, and commercial resources (see Vohora et al., 2004a). To study social networks of a founding team, we employ the conceptual model of Hoang and Antoncic (2003) that divides networks into three components: structure, governance, and content. Results and implications: The results from an examination of the sample of 181 Spanish university spin-offs empirically demonstrate that by exploiting social networks a founding team can improve its entrepreneurial capabilities, which in turn enhance its spin-off’s performance. By employing the work of Vohora et al. (2004a) and Shane (2004), this paper constructs a model in which entrepreneurial capabilities play a mediate role between social networks and spin-off’s performance. Thus, the paper has implications for universities in training and policy development to support spin-off’s activity. Value: This study addresses some fundamental questions to contribute to the theory-based understanding of university spin-offs: How do entrepreneurial capabilities of founding teams influence the performance of university spin-offs? How do social networks of founding teams contribute to the process of the university spin-offs

Locational Conditions, Cooperation, and Innovativeness: Evidence from Research and Company Spin-offs

This paper has two goals. First, it analyzes the extent to which the innovativeness of spin-offs, either born from a research facility or from another company, is influenced by locational conditions. Second, it provides evidence on how important local cooperation links are in comparison to nonlocal ones. Using a sample of approximately 1,500 East German firms from knowledge-intensive sectors, we estimate a structural equation model applying the partial least squares method. We find that proximity to local research institutes and universities is the most influential factor for the cooperation intensity of spin-offs. Furthermore, the higher the cooperation intensity, the greater the innovativeness of a firm. Moreover, the results indicate that it is not the local but the nonlocal cooperation ties that are more conducive to innovativeness of research spin-offs. The findings also highlight that the innovativeness of research spin-offs with solely local links is strongly depends on support from various authorities and institutions.Research and Company Spin-Offs, Locational Conditions, Cooperation Intensity, Innovativeness, Structural Equation Modeling, Partial Least Squares Approach

Finding and filling the gaps in the Australian governments\u27 innovation and entrepreneurship support spectra

A national innovation system is concerned with the full process of converting new knowledge into commercially viable results. Governments are policy-active in trying to create productive national innovation systems. This paper reviews ways of thinking about entrepreneurship as the commercialisation component of Australia&rsquo;s innovation system. The paper explores the impact and relevance of selected existing Australian Commonwealth, and to a lesser extent State government, programs for the commercialisation channels so identified, using four frameworks for the analysis: financial, management/start-up, innovation and entrepreneurial. The analysis indicates program initiatives covering the later development and commercialization phases, but serious gaps in the support available for the entrepreneurship phase involving the act of new entry. This gap is covered by research provider business development people and to a limited extent by incubator and State government initiatives. A critical issue has been and is access to smaller amounts of seed finance. The critical human component is the education of public servants and politicians about the nature and operation of entrepreneurship.<br /

University Spin-off Fundraising: The Impact of Entrepreneurial Capabilities and Social Networks Of Founding Teams during Start-ups

University spin-offs have increasingly received attention from academia, governments, and policymakers in studying the financing policies, venture capital investment decision making, the roles of venture capitalist in the development of new ventures, and the contributions of entrepreneur’s social capital to the fundraising activities. However, the limited number of studies in understanding of the contribution made by the entrepreneurial capabilities and social networks of a founding team to its fundraising ability still remains, especially within university spin-off context. Employing resource-based view theory and social networks approach, this paper enriches the knowledge by exploring university spin-offs in Spain. The results of this study empirically demonstrate that by exploiting social networks a founding team can improve its entrepreneurial capabilities, which in turn enhance its fundraising ability

Academic Entrepreneurship: What are the Factors Shaping the Capacity of Academic Researchers to Identify and Exploit Entrepreneurial Opportunities?

This paper aims at improving our understanding of the attributes of academic researchers that influence the capacity to identify and exploit entrepreneurial opportunities. We investigate a number of factors highlighted in the literature as influencing the entrepreneurial activities undertaken by academics. Our results show that identification and exploitation of entrepreneurial opportunities are shaped by different factors. While identification of commercial opportunities is driven by prior entrepreneurial experience and the excellence of the academic work, exploitation of entrepreneurial opportunities is driven by the extent of previous collaboration with industry partners, cognitive integration and prior entrepreneurial experience.Academic entrepreneurship; Opportunity identification; Opportunity exploitation; Spin-offs; Patenting; University-business collaboration

How University Departmens respond to the Rise of Academic Entrepreneurship? The Pasteur's Quadrant Explanation

This paper examines how universities can develop a new organizational structure to cope with the rise of academic entrepreneurship. By deploying the Pasteurian quadrant framework, knowledge creation and knowledge utilization in universities are measured. The relationships between university antecedents, Pasteurian orientation, and research performance are analyzed. A survey of university administrators and faculty members collected 634 responses from faculty members in 99 departments among 6 universities. The findings indicate that university antecedents of strategic flexibility and balancing commitment contribute to a greater Pasteurian orientation in university departments. The higher degree of Pasteurian orientation has significantly positive impacts on the performance both of knowledge creation and knowledge utilization. Moreover, the Pasteurian orientation acts as a mediator between university antecedents and research performance. Using cluster analysis, the departments are categorized into four groups. The differences between university- and department- factors in these four groups are examined and discussed. We conclude that not all university departments should move toward the Pasteurian group, and there are specific organizational and disciplinary factors resulting in mobility barriers among groups. Policies to encourage academic entrepreneurship should consider these mobility barriers, along with this new governance of science.Academic entrepreneurship, Pasteur’s quadrant, research excellence, research commercialization

Follow the leader or the pack? Regulatory focus and academic entrepreneurial intentions

Drawing on the academic entrepreneurship and regulatory focus theory literature, and applying a multilevel per- spective, this paper examines why university academics intend to engage in formal (spin-off or start-up companies and licensing university research) or informal (collaborative research, contract research, continuous professional development, and contract consulting) commercialization activities and the role local contextual factors, in partic- ular leaders and work-group colleagues (peers), play in their commercialization choices. Based on a survey of 395 science, technology, engineering, and mathematics (STEM) academics working in 14 Scottish universities, the research findings suggest that an individual’s chronic regulatory focus has a direct effect on their formal and informal commercialization intent. The results reveal that the stronger an individual’s chronic promotion focus the stronger their formal and informal commercialization intentions and a stronger individual chronic prevention focus leads to weaker intentions to engage in informal commercialization. In addition, when contextual interaction effects are considered, leaders and workplace colleagues have different influences on commercialization intent. On the one hand, promotion-focused leaders can strengthen and prevention-focused leaders can under certain cir- cumstances weaken a promotion-focused academic’s formal commercialization intent. On the other hand, the level of workplace colleague engagement, acting as a reference point, strengthens not only promotion-focused academ- ics’ intent to engage in formal commercialization activities, but also prevention-focused academics’ corresponding informal commercialization intent. As such, universities should consider the appointment of leaders who are strong role models and have a track record in formal and/or informal commercialization activities and also con- sider the importance workplace colleagues have on moderating an academic’s intention to engage in different forms of commercialization activities

Exploring the evidence base : an overview of the literature on the economic impact of knowledge transfer

This paper presents a policy-focused overview of relevant extant and ongoing research relating to the economic impact of knowledge transfer from higher education institutions. It highlights gaps in the current higher education research policy agenda on knowledge transfer as well as making suggestions where further research could most usefully inform policy. Consideration is also given within this paper to the development and use of metrics related to knowledge transfer activities of higher education institutions