Impact of public seed-funding on academic spin-offs

In the entrepreneurial economy of today, it is not the multinational firms which are the predominant driver in the creation of new knowledge, but the individual entrepreneur. Correspondingly, new ventures of small size are leading in commercializing new knowledge and transferring it to the market. This economic shift has been reflected by broad entrepreneurship policies, which aim at supporting the individual on the challenge of a high-growth start-up. However, prior experience shows that uniform entrepreneurship policies do not address the individual needs in different countries and ecosystems adequately. In this paper, we study the performance of academic spin-offs that received public funding from the German EXIST Business Start-Up Grant, a support program which aims at increasing the number of innovative start-ups from academia. Using a control group matching approach, we provide evidence that these start-ups are smaller by two full time equivalent employees, generate 1.7 times higher losses and have a nearly three times lower return on capital than science-based entrepreneurial firms with comparable characteristics in the first 5 years after foundation. We interpret these results to be primarily caused by the inferior financial contracting structure of the program compared to private venture capital funding and by the resulting adverse selection and incentive effects on the entrepreneurs. The evidence calls for rethinking public interventions in a national system of entrepreneurship.     

Student and graduate entrepreneurship: ambidextrous universities create more nascent entrepreneurs

Despite its importance, student and graduate entrepreneurship at universities has received limited scholarly attention. The literature on university entrepreneurship has mainly focused on university scientists who have founded their own firms or spin-offs that were created based on intellectual property that is owned by universities. This paper focuses on technology new ventures that are created by university students and new graduates and aims to investigate the linkages among university-level organizational competencies, the entrepreneurial competencies of nascent entrepreneurs and the number of start-ups that have been created by students and new graduates. Our argument is that universities are heterogeneous in their resources and competencies, and these organizational competencies are influential on students in the development of entrepreneurial competencies and hence in the creation of start-ups. Differences among universities have led to information asymmetries and variances in entrepreneurial competencies among students and graduates. This study uses two data sources at the university level from Turkey. The first is the Technoenterprise Funding Support Program, and the second is the Entrepreneurial and Innovative University Index. Our research covers 40 universities over 3 years from 2012 to 2014, and we apply a panel data methodology. Our research suggests that (1) ambidextrous universities that provide a good context for the exploration and exploitation of new knowledge support their students in the development of entrepreneurial competencies and in starting their own technology new ventures, (2) the traditional role of universities (research and teaching) is important for the creation of entrepreneurial universities and finally, (3) university entrepreneurship is path-dependent.     

The role of universities in the location of innovative start-ups

Start-ups increasingly find the prospect of university–industry collaborations to be a powerful driver of innovation and entrepreneurship activity. Moreover, at the geographical level, they are attracted by teaching and research institutions, either public or private. This paper focuses on the role played by universities. Our hypothesis is that geographical proximity favors the transfer of knowledge and technology from universities to industries and, consequently, represents a positive factor for regional economic development. Results show that university spillovers are positively correlated with the creation of innovative start-ups. Furthermore, the presence of human capital (graduates) exerts a significant influence on the location decisions of start-ups, being a source for competitiveness for firms close to universities. Research quality, especially in the social sciences area, attracts innovative start-ups, while third-mission activities have a weak impact on locational choice.     

Academic spin-offs, corporate spin-outs and company internal start-ups as technology transfer approach

As a rule, a technology transfer gap exists between research and development and the commercialisation of the results. This article investigates the role of new ventures for technology transfer from universities and research institutions as well as between or within companies to close this gap. Based on case studies in Germany and Switzerland, different examples of this technology transfer approach have been analysed. Academic spin-offs can help to transfer technology from universities and research institutions to industry especially if there is the need for additional funding to further develop the technology. Corporate spin-outs can be used for technology transfer between companies as an alternative to closing operations should these no longer fit into the parent organisation. Internal start-ups were identified as a new approach for company internal technology transfer from research departments to business units focused on commercial operations to overcome innovation barriers within companies.     

Attitudes about electronic monitoring: Minority and majority racial group differences

Past public opinion research routinely uncovered significant variation in attitudes toward justice system policies among different racial groups. The bulk of punishment attitudinal research, for the most part, focused on more severe sanctions, namely, incarceration and the death penalty. More recent research investigated the perspectives and experiences associated with intermediate sanctions. There are few intermediate sanctions receiving more attention than the use of electronic monitoring, especially with sex offenders. In this article, it is demonstrated that non-White college students have significantly different attitudes about the punitiveness and inequality of electronic monitoring. These findings were uncovered through 599 completed surveys from two universities, and using factor analysis and least-squares regression analysis. Theoretical and practical implications for continued use of this sanction are discussed.     

Start-EU-up! Lessons from international incubation practices to address the challenges faced by Western European start-ups

Despite the continued efforts of policy makers, Western European start-ups are still struggling. Further, as questions are being raised about the effectiveness of incubators, there is a growing call for incubators around the world to learn from each other and improve themselves. Our paper enables Western European incubators to learn from their foreign peers by qualitatively exploring the challenges faced by Western European start-ups and the practices that incubators around the world use to address these challenges. Our study thereby takes a two-step approach. First, using the components of the entrepreneurial ecosystem to structure data coming from 90 qualitative interviews with Western European entrepreneurs and incubator managers, we explore five interrelated challenges that constrain the ability of Western European start-ups to grow into high-impact businesses. In the second part of our study, we conduct a total of 191 interviews in Silicon Valley, the greater Boston area, Israel and Australia to identify practices that incubators in these regions use to address the five challenges identified in the first study. Our findings suggest that, rather than addressing the underlying institutions that cause challenges in the entrepreneurial ecosystem, incubators provide symptomatic solutions by creating an environment that protects start-ups from unfavorable institutions. Accordingly, we conclude that existing incubators have only limited potential to strengthen entrepreneurial ecosystems, and we end our paper with a call for a new generation of ‘systemic incubators’ that aim to transform or create institutions to address the institutional challenges that constrain start-up activity.     

The contribution of university research to the growth of academic start-ups: an empirical analysis

The aim of this paper is to analyze empirically under which circumstances the universities located in a geographical area contribute to the growth of a special category of local new technology-based firms (NTBFs), those established by academic personnel (academic start-ups, ASUs). We examine the effects of a series of characteristics of local universities on the growth rates of ASUs and we compare them with the effects of the same university characteristics on the growth of other (i.e., non-academic) NTBFs. In the empirical part of the paper, we estimate an augmented Gibrat law panel data model using a longitudinal dataset composed of 487 Italian NTBFs observed from 1994 to 2003. Out of these NTBFs 48 are ASUs. The results of the econometric estimates suggest that universities do influence the growth rates of local ASUs, while the effects on the growth rates of other NTBFs are negligible. In particular, the scientific quality of the research performed by universities has a positive effect on the growth rates of ASUs; conversely the commercial orientation of research has a negative effect. These results indicate that universities producing high-quality scientific research have a beneficial impact on the growth of local high-tech start-ups, but only if these firms are able to detect, absorb, and use this knowledge. In this perspective, a greater commercial orientation of university research leading to a reduction of the knowledge available for absorption by these companies, can be detrimental.     

The university’s unknown knowledge: tacit knowledge, technology transfer and university spin-offs findings from an empirical study based on the theory of knowledge

The assumption that research findings provide the basis for spin-off projects at universities has been found up to now in literature and the practice. Supported by the theory of knowledge, the empirical study presented here shows that this idea is too limited. Only 45 % of spin-offs use codified research findings from the university, while 55 % use tacit knowledge that was acquired at the university. These spin-offs use knowledge beyond research findings, starting companies in the shadow of publications by academic institutions and drawing from the realm of tacit knowledge at universities. Tacit start-up knowledge is present in all scientific disciplines of universities; even the exploitation- and patent-oriented engineering sciences account for almost half of the start-ups. Start-ups based on tacit knowledge lead to both technology-oriented and service companies. They also do not differ from codified knowledge-based start-ups in the number of jobs that they create. The discovery of the tacit knowledge spin-offs as a phenomenon has an entire series of implications for the practice and research. The tacit start-up potential was not considered previously in the university promotion instruments and start-up consultancies. Furthermore, we can assume that tacit knowledge-based start-ups are only an initial indication of the innovation potential within the tacit realm of knowledge for universities and research institutes.     

University startups as a commercialization alternative: lessons from three contrasting case studies

A recent National Research Council (NRC) report (2011) recommends that universities must craft policies and allocate resources to enable more university startups because some university technologies will never be commercialized unless licensed to a startup. However, the creation of university startups requires personnel skills and programs not typically associated with an university Office of Technology Transfer (OTT). Estimates show that 75 % of university inventions are not licensed at all. The conclusions of this study include university policies to turn some them to fuel university startups. Carefully selected case studies of three contrasting universities reveal patterns of successful startup policies and performance. MIT’s case is an example of long-term success, the University of Colorado’s case is an example of medium-term success, and Auburn University’s case is an example of a new-comer to the scene. Lessons from the case studies include: the need for very early evaluation of all inventions for their startup potential, the need for pre-license seed funds through proof-of-concept programs to advance early-stage inventions to the next stage, and the need for OTT personnel skilled in enabling startups. NSF’s recent I-Corps program invests heavily in the training of potential enablers and entrepreneurs for commercializing university inventions. Based on the findings of this study, I-Corps must also invest in pre-license proof-of-concept programs to advance early-stage university inventions closer to the market. Implementing the conclusions of this study would also accomplish the recommendations of the 2011 NRC report cited above.     

The community corrections perspective toward sex offender management policies and collateral consequences: does contact with sex offenders matter?

Since the 1990s, numerous policies have been enacted aimed at managing sex offenders in the community. Two of the most prominent management policies are registries for sex offenders and residence restrictions. Community corrections professionals are tasked with enforcing these policies and yet little is known about their perceptions toward sex offenders and the policies in place to manage them. Prior research has suggested that contact with sex offenders may place a significant role in shaping the attitudes of community corrections professionals toward sex offender management policies and collateral consequences. The current study investigates the effect of contact with sex offenders on the perceptions of community corrections professionals (n = 209) toward sex offender management policies and collateral consequences faced by sex offenders. Findings suggest that contact with sex offenders does not influence the attitudes of community corrections professionals, but several other significant factors were revealed including parental status, political orientation, race, tenure, sex, and age.     

Do academic spinoffs internationalize?

Universities are key actors within the entrepreneurial ecosystems. A positive spillover of their knowledge creation and dissemination activity is the establishment of academic spinoffs. This study is one of the first to investigate the post-entry internationalization of academic spinoffs in terms of international sales. Adopting a conditional difference-in-differences approach, we matched a sample of 508 Italian academic spinoffs established between 1999 and 2014 with 404 comparable non-academic innovative start-ups. We find that university spinoffs are more prone to internationalize than their non-academic counterparts. This result is intrinsic to their affiliation with universities but is also related to the degree of internationalization of the parent university. A two-stage Heckman procedure confirms indeed that university internationalization translates into the internationalization of their spinoffs. This study contributes to different streams of literature, ranging from entrepreneurial ecosystems to academic entrepreneurship and internationalization literature due to the academic spinoffs’ nature of being a phenomenon at the confluence of several research fields.

     

Public opinion and the politics of obesity in America

Health policy experts have recently sounded the warning about the severe health and economic consequences of America's growing rates of obesity. Despite this fact, obesity has only begun to enter America's political consciousness and we have little information about what average Americans think of obesity or whether they support obesity-related policies. Using unique survey data collected by the authors, this essay examines public attitudes toward obesity and obesity policy. We find that, contrary to the views of health experts, most Americans are not seriously concerned with obesity, express relatively low support for obesity-targeted policies, and still view obesity as resulting from individual failure rather than environmental or genetic sources. Given the absence of elite discourse on this problem, we also find that typical determinants of policy preferences, such as ideology or partisanship, are not good predictors of attitudes on obesity policy. Rather, with a low-valence issue such as obesity, the public utilizes other attitudinal frameworks such as their opinions on smoking policy and the environmental culpability for obesity. The implications of these findings for obesity policy and research on health-related public opinion are discussed.     

National laboratories as business incubators and region builders

Public sector labs do not appear to have generated as much regional business spinoff as universities and research-intensive businesses. This difference may be explained in large part by the disparate capabilities for and attitudes toward new-firm incubation on the part of parent institutions and other anchor tenants. We believe that federal lab personnel systems, research cultures, geographical isolation, management preferences, and complex public interest issues are responsible. These phenomena are explored in an intensive case study of startups associated with Los Alamos and Sandia National Laboratories in New Mexico. Interviews conducted with 33 firms confirm many barriers to incubation, but also reveal some advantages offered by public labs and suggest that changes in attitude, culture, and policy can make a difference. We explore the difficult issues of property rights assignment, public employee conflict-of-interest rules, and the use of public sector equity in spinoffs, and we conclude that startup efforts have been underfunded. Lab partnerships with large corporations in comparison are expensive, hoard labor, and are less effective at transferring technology. Recommendations for improvement of the incubation process include entrepreneurial leave and training, streamlining of conflict-of-interest, patent, and licensing procedures, and lab based efforts to connect would be entrepreneurs with sources of business assistance, space and capital.     

Universities and the success of entrepreneurial ventures: evidence from the small business innovation research program

There has been little direct, systematic empirical analysis of the role that universities play in enhancing the success of entrepreneurial ventures. We attempt to fill this gap by analyzing data from the US SBIR program, a ??set-aside?? program that requires key federal agencies (e.g., Department of Defense) to allocate 2.5% of their research budget to small firms that attempt to commercialize new technologies. Based on estimation of Tobit and negative binomial regressions of the determinants of commercial success, we find that start-ups with closer ties to universities achieve higher levels of performance.     

Is health care different? Popular support of federal health and social policies

Over the past several years there has been a striking increase in policy-makers' attention to health care reform. This paper explores whether there has been a corresponding shift in popular attitudes and identifies factors that may have changed these attitudes. The first part of the analysis relies on survey data collected between 1975 and 1989 to estimate a set of regression models, relating support for federal involvement in health care, antipoverty programs, and general domestic policies to a set of sociodemographic characteristics.... The second part of this study explores motivations that might account for these patterns. We identify a half dozen ways in which health care may be viewed as "different," that is, more or less appropriate for federal action. Analysis of survey data from 1987 suggests that there are relatively small differences in the attitudes and perceptions that motivate support for federal health initiatives, relative to federal domestic policies in general. However, there are more striking differences between health programs and more overtly redistributive policies.... We suggest that the growing support for federal intervention in health care, relative to other social policies, is in part an inadvertent by-product of ideological positions popularized during the Reagan and Bush administrations. We draw from these results some predictions about the course of the ongoing debate over federal health policies.     

Capturing the Regional Economic Benefits of University Technology Transfer: A Case Study

Despite a high concentration of brainpower and federally funded research, some universities have been unable to translate these assets into regionally based economic activity. The author uses an ethnographic method interviewing university officials and academic entrepreneurs in New York City, which has a relatively poor record of local start-up creation. The author finds that universities that view the primary objective of technology transfer as a revenue generator for their institutions generate fewer spin-offs than those that incorporate a local economic development component. Internal advocacy and faculty interest, however, can affect university behavior. The author also finds that academic entrepreneurs with a pre-existing affiliation with the licensing institution are more likely to locate in the area than outsiders utilizing the technology. Entrepreneurs exhibit a distinct locational calculus based on a range of variables including real estate costs, founders’ preference and the geographical proximity of key firm relationships.      

Academic Capitalism and University Incentives for Faculty Entrepreneurship

Entrepreneurial behavior by professors—including decisions about collaboration with industry, patenting and spinning off companies—can affect the productivity of top universities’ technology transfer efforts. Interviews with 98 professors at 12 southeastern universities showed that the most significant influence on these aspects of entrepreneurial behavior is the beliefs of professors about the proper role of universities in the dissemination of knowledge. Some institutional policies, notably revenue splits with inventors, can affect aspects of this behavior. These findings suggest that both university incentive policies and ethical concerns about academic capitalism, by limiting the productivity of technology transfer efforts, have an effect on regional economic development.     

Exploring the spatial heterogeneity of entrepreneurship in Chinese manufacturing industries

The prevalence of entrepreneurship not only varies across regions, but also differs among industries. Based on a unique data set of 146 manufacturing industries across 30 provincial-level regions in China, this study investigates the importance of geographical conditions and industry dynamism on net entry rates of Chinese manufacturing firms, and empirically explores how these two sets of factors jointly influence the distributional pattern of entrepreneurship. By testing for the significance of interactions between industry dynamism and local condition variables, it is found that growth-driven entrepreneurial activities favor agglomerated regions and do not value knowledge creation capability much, although both knowledge creation capability and factor market maturity are important for a region to attract entrepreneurs pursuing technological opportunities. For start-ups exploiting niche opportunities, agglomeration and local competition both act as deterring factors. Overall, the results confirm the importance of local conditions and industry structural variables as joint determinants of entrepreneurship in Chinese manufacturing industries.     

Who is the academic entrepreneur? The role of graduate students in the development of university spinoffs

Academic entrepreneurship, the establishment of new companies based on technologies derived from university research, is a well-recognized driver of regional and national economic development. For more than a decade, scholars have conceptualized individual university faculty as the primary agents of academic entrepreneurship. Recent research suggests that graduate students also play a critical role in the establishment and early development of university spinoff companies, but the nature of their involvement through the entrepreneurial process is not yet fully understood. Employing a case study approach, this paper investigates the role of graduate students in early-stage university spinoff companies from the Massachusetts Institute of Technology. We find that graduate students play role similar to that of individual faculty entrepreneurs in university spinoffs, both in terms of making the initial establishment decision and in reconfiguring the organization for marketable technology development. We also find that student entrepreneurs face unique challenges involving conflicts with faculty advisors and other students.     

Surrogacy: is it harder to relinquish genes?

Surrogacy has produced some positive outcomes by creating an opportunity for otherwise childless couples to realise their dream of parenthood. However, it has also been problematic, particularly where the surrogate mother fails to relinquish a child born as a result of the surrogacy arrangement. This article examines whether a surrogate mother who is genetically related to the child she delivers is less likely to relinquish the child than one who has no genetic ties. An examination of empirical evidence provides support for this argument. Legislation and case law in Australia, the United States and the United Kingdom are examined to determine which, if any, of these jurisdictions take into account the existence, or otherwise, of a genetic link between the surrogate mother and the child she bears. The article concludes that surrogacy legislation should, subject to exceptional circumstances, encourage surrogacy arrangements where the child and the surrogate are not genetically related.