Growth factors of research-based spin-offs and the role of venture capital investing

Using a proprietary dataset of 98 German research-based spin-offs (RBSOs) founded between 1997 and 2012, we assess which firm-specific and system-inherent factors are decisive for the spin-offs’ growth drawing on the resource-based view. Specifically, we aim to evaluate whether venture capital-backed RBSOs outperform non venture capital-backed RBSOs and whether a performance difference is explained by venture capitalists’ scouting or coaching capabilities. Our empirical findings detect that a homogeneous educational background of the academic entrepreneurs is positively associated with RBSO growth. A training provided by the parent research organization intended to develop entrepreneurial skills and to establish a network to outside professionals as well as the commercialization of a novel technology have a positive impact on firm growth. Concerning the involvement of venture capitalists, venture capital-backed RBSOs show a superior employment and revenue growth compared to non-venture capital-backed RBSOs. Our results support the view that this superior performance is attributed to venture capitalists’ coaching rather than their scouting capabilities.     

Different Timelines for Different Technologies

Case studies of the first completed Advanced Technology Program (ATP) projects have shown considerable variation in commercialization patterns of ATP-funded technologies. These variations were apparent in the timing of initial revenues, commercialization in more mature and multiple applications, and diffusion of ATP technologies relative to the period of ATP funding of R&D. This study analyzes differences in commercialization patterns for different ATP-funded technologies in a systematic way.     

Exploring public values implications of the I-Corps program

This paper examines how the concept of public values can be operationalized in an ongoing public initiative to stimulate innovation in an emerging technology. Our study focuses on Innovation Corps (I-Corps)—a program initiated in 2011 by the National Science Foundation (NSF) to accelerate the process of commercializing science-driven discoveries. The I-Corps method has since spread rapidly across multiple US agencies. Separately, there has also been heightened attention to the early anticipation and mitigation of the implications of emerging science and technology. Drawing on the case of nanotechnology, the paper considers how public values related to nanotechnology commercialization can be integrated alongside the fast start-up procedures embedded in I-Corps. We use a public values framework to pose societal impact questions that can be probed in parallel with the current I-Corps process, highlighting values such as identification of societal problems that the technology might potentially address; types of potential customers likely to be overlooked; groups who might oppose the application as well as those who might support it; and potential environmental, health, and safety risks. The paper discusses the challenges of adding specifications related to equity as well as safety in efforts to foster rapid commercialization and considers how these can be integrated within the I-Corps approach.     

Factors fostering academics to start up new ventures: an assessment of Italian founders’ incentives

Why do university researchers decide to start-up a new venture? How can we distinguish between the different factors influencing such an important decision? To what extent are specific policies activated within universities relevant in the process of new venture creation? In this paper we try to answer these very significant questions, through an empirical analysis performed on a sample of 88 Italian academics involved in the creation of 47 spin-offs between 1999 and 2005. Our findings show that the availability of technologies with a potential for commercial exploitation, the possibility to access university infrastructures and the personal benefits are the most important incentives for academics. More generally, academics’ involvement in creating new ventures is not driven by an entrepreneurial attitude, but rather by the expectation of generating results which will enhance their academic position. Additional investments and efforts made by some universities to create more mechanisms to support spin-offs are not perceived as additional incentives. These results hold after controlling for academic founders’ institutional affiliation, status, and the companies’ growth over their first two years of existence. Implications for public policy and organizational processes are discussed.     

Intervention

When a child is sexually abused there are two immediate and strong reactions; the abuser must be punished, the child must be helped. If the abuser is a stranger, there is no problem. The child and her family can be worked with and the abuser can be sent to prison with no one else hurt, except of course for the abuser's own wife and children. But if the abuser is a parent of the child, a choice may have to be made. Either treat the child or punish the abuser, usually not both. If the abusing parent is put in jail, the abused child will feel guilty, a parent who may be otherwise a valuable member of the family is gone, the family loses a paycheck, its standard of living tumbles, the abused child may be blamed by the rest of the family. The best treatment requires the whole family, the abuser and the abused, the mother who may be an enabler, the other children who are necessarily involved. Without the abuser, the treatment circle is not complete, the problems cannot be fully resolved, the children may yet grow up to be abusers themselves. If, as is usual, the abuser is part of the family constellation, a policy decision must be made, and early: to punish the abuser or to have adequate treatment. The sooner treatment can be started, the more effective it will be. Conversely, the sooner the abuser is jailed and charged, the fresher the evidence will be.     

Exploring board formation and evolution of board composition in academic spin-offs

An in-depth analysis of 11 cases is used to provide insight into the neglected area of the dynamics of boards in academic spin-offs. Drawing on stage-based, resource dependence, and social network theories, we explore board formation and changes in board composition occurring in Norwegian and US spin-offs. We find that these theories are important complements to earlier research on boards in technology-based new ventures. The process of board formation is mainly driven by social networks of the founders. Although we find differences in the initial board compositions in Norwegian and US spin-offs, there is convergence over time in subsequent board changes, which are mainly driven by the social networks of the board chair. Additions of key board members are associated with the progress of a spin-off developing from one stage to another. Several avenues for future research and implications are discussed.     

The Strength of Strong Ties: University Spin-offs and the Significance of Historical Relations

This article investigates the relationship between universities and academic spin-offs, with special emphasis on the antecedent conditions of, and the nature of the linkages that the spin-offs form, as well as the means for sustaining them. The present research uses an instrumental case study approach, and is also an instance of a collective case study as four companies of various size and activities have been studied together. The preliminary results indicate that the network relations are characterized by a small number of strong ties to universities, with a high degree of trust and informality. Although fruitful for the transfer of complex knowledge, the strength of the ties also make them difficult to substitute, which may lead to problems as the spin-offs are highly dependent on continued basic research support. This may in turn lead to implications for policy at university, as well as higher levels.     

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.     

Imprinting and the progeny of university spin-offs

In this paper, we employ a genealogical imprinting approach to theorize that experiences incurred during the founding of a first-generation university spin-off will influence future spin-off activity from the focal firm. We propose that firms that secure equity investment during their founding process will have a higher likelihood of generating subsequent spin-offs, and that this impact is conditional on the human capital of the founding team. We test our hypotheses on a sample of 101 first generation university spin-offs around a large US research university and their subsequent progeny firms. This study develops a new understanding of multi-generational spin-off processes in a region.     

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.     

Determining Factors of the Effectiveness of IP-based Spin-offs: Comparing the Netherlands and the US

In this paper we describe and analyse IP-based spin-offs as a relatively new phenomenon for transferring knowledge from science to industry. We argue that the effectiveness of this mechanism is subject to a complex array of institutional factors. These factors entail national, sectoral, regional and managerial institutions. Based on an indicative comparison between the Netherlands and the United States we find that is especially the combination of national and sectoral institutions that condition whether an IP-based spin-off is established in the first place, whereas regional and managerial institutions condition its subsequent chances of success. We finish by formulating some notions for public policy.     

Technology transfer practice in japanese corporations: Meeting new service requirements

Japanese corporations are undergoing radical transition: they have begun to reassess the role, organization, and management of their internal R&D and technology commercialization activities in response to changing market, business, and technical conditions. From large consumer electronics firms such as Matsushita and Sony to the semiconductor and computing conglomerates such as Fujitsu and NEC, these organizations are under considerable pressure to both invent and innovate more rapidly and cheaply than ever before. As technologies become more complex and integrated—such as the convergence of electronics, computing, video, and broadcast television—it is no longer practical to assume that all of a firm's R&D needs can be met internally. This paper looks first at how major Japanese corporations have embraced technology transfer mechanisms such as licensing, joint collaboration, and the outsourcing of R&D to manage these changes dynamically and effectively. Secondly, this paper looks at why Japanese firms' record of managing collaboration and licensing, particularly on an international basis, has been disappointing because of a number of problems and barriers. These difficulties, which are compounded by the further externalization of research and technology and by increased licensing activity, have given rise to a need for new technology transfer services which, until recently, have not been available either within the organization or through local consulting firms in Japan. This paper concludes by outlining strategic and operational guidelines for managing licensing and collaboration arrangements between U.S. and Japanese firms which are also applicable in the general case. These insights are based on the experiences of managing licensing and collaboration programs between Japanese and U.S. organizations from the dual perspectives of two licensing firms—Innovation Partners, kk. in Japan and Competitive Technologies, Inc. of the United States.     

Towards a model of effective knowledge transfer within transnationals: The case of Chinese foreign invested enterprises

In this paper Chinese foreign invested enterprises (FIEs) are employed as prototypes to generate a model of how transnationals can transfer both tacit and explicit knowledge between their units as well as between FIEs and the parent organization. We propose that successful intra-organization knowledge transfer depends upon: (1) collective creation of knowledge as intellectual and social capital available throughout the organization; (2) trust-based collaboration among geographically dispersed entities that form the transnational organization; and (3) the willingness and ability of organizational units to use that knowledge. The paper further proposes that organizational knowledge should ideally flow in multiple directions, providing learning opportunities for both investing and host organizations. Implications for transfer of best practices, a specific form of tacit knowledge, are also offered.     

Immigration and Justice: The Allocation of Goods to Newcomers from the (Former) Soviet Union in Israel1

This paper looks at ways in which notions of membership and of just allocation were articulated in the everyday practices of a voluntary organization set up in the early 1990s to distribute clothing and household goods to newcomers from the (former) Soviet Union in Israel. Based on an ethnographic account of the distribution centre, this paper describes its underpinning ideology and demonstrates the implications of this ideology for the rules governing the allocation of goods. The paper analyzes three inter‐related axes around which notions of rules of just allocation were equivocally interpreted and implemented. The first of these axes related to the discourse of justice deemed most appropriate to the newcomers; the second to the status of the newcomers; and the third to the creation of social categories—primarily defined in ethnic terms—and the hierarchical relationships between them.     

中国的熟人社会与有组织犯罪的组织性特征

从公开数据可以看出,现阶段中国有组织犯罪成员以当地人为主,外地人所占比例受外来人口数量影响,成员之间关系多为熟人关系。之所以如此,原因在于长期以来中国是一个差序格局下的熟人社会。在此影响之下,现阶段中国有组织犯罪组织性表现出组织规模容易发展壮大,组织对外＂凝聚力＂相对较强,组织内部结构相对松散,组织的核心圈为当地人,外地人往往处于外层等特征。随着社会发展,中国正逐步由熟人社会向半熟人社会转变,有组织犯罪在未来则将出现组织严密性增强、组织人员组成越发复杂、核心圈和外层人员组成差异不再明显等趋势。有组织犯罪的这些组织性特征决定了对其必须＂打早打小＂。     

Signaling in academic ventures: the role of technology transfer offices and university funds

University spinoffs, an important subset of high-tech start-up companies, operate in a context characterized by marked information asymmetries that limit their chances of obtaining financing. Given the uncertainty and imperfect information that characterize these investment opportunities, signals about their potential value deserve further attention. We investigate the relationship between the main stakeholders involved in the process of creating a university spinoff—that is, the academic founders, the university technology-transfer office, and private investors—focusing on the role of public grants as effective signals that attract private venture capital (VC) funding. Using the database of all spinoff companies established to exploit inventions assigned to the University of Michigan from 1999 to 2010, we determine how the funds provided through the university technology-transfer office influence VC follow-on funding and consequent spinoff growth, controlling for the spinoff’s technology, the founders’ human capital, and the network’s resources. The empirical results support a signaling effect of the commercialization funds provided by the university and suggest an indirect impact on the growth of the spinoff’s sales through the mediating effect of VC financing.     

也论唐代司法体系中的"三司"

"三司"是唐代司法体系中一个十分重要而特殊的机构,以安史之乱为分界线,三司的发展可分为前后两个阶段,无论在性质还是在职能上都有重大的不同:从高宗到玄宗之时,三司在相当长的一个历史时段内主要是一个代理皇帝受理诉状的秘书性机构,之后三司逐渐演变成为了一级介于皇帝与尚书省之间的审级.肃宗以后,三司逐渐固定地由御史台、刑部以及大理寺的官员组成.唐代的三司走过了一条从皇帝的秘书性机构到常设性司法机构再到临时性司法机构的历程,显示了一条从履行协助君主处理司法事务的辅助性职能到转变为一项正式的国家司法权力,然后又演变为君主个人专断权力的轨迹.三司作为"恤刑"政策的产物,尽管经历了一个比较复杂的演变过程,但却一直起着正面积极的作用.     

From the Halls of Congress to K Street: Government Experience and its Value for Lobbying

Lobbying presents an attractive postcongressional career, with some former congressional members and staffers transitioning to lucrative lobbying careers. Precisely why congressional experience is valued is a matter of ongoing debate. Building on research positing a relationship between political uncertainty and demand for lobbyists, we examine conditions under which lobbyists with past congressional experience prove most valuable. To assess lobbyist earnings, we develop a new measure, Lobbyist Value Added, that reflects the marginal contribution of each lobbyist on a contract, and show that previous measures understate the value of high‐performing lobbyists. We find that former staffers earn revenues above their peers during times of uncertainty, and former members of Congress generate higher revenue overall, which we identify by comparing revenues generated by individuals who narrowly won election to those who narrowly lost. These findings help characterize when lobbyists with different skillsets prove most valuable and the value added by government experience.     

The role of marketing activities in the fuzzy front end of innovation: a study of the biotech industry

In this paper we explore the importance of marketing activities during the Fuzzy Front End of Innovation (FFEI), which in product life cycle management is described as the phase between R&D and the beginning of formal new product development. The FFEI is characterized by informal processes and many industry specific conditions. The particular context in which the study was conducted involved research emerging from a US government sponsored institution. Firms obtain licenses for technology from the government sponsored institution with the purpose of advancing them towards commercialization. But, the process of development often gets stalled, especially during the initial stages due to the lack of a number of resources (financial, key personnel, etc.). The specific interest in this study was, therefore, to understand the extent to which various marketing efforts by the licensees enabled the survival of early stage biotech innovations. Licensees would be expected to seek resources by undertaking a number of marketing activities designed to communicate a value proposition to potential resource providers. The study involved qualitative data collection among licensees to uncover marketing activities in which they engaged during the FFEI phase. The data was coded to develop the specific types of marketing activities that had been employed so as to provide insight into which activities were important in enabling early stage innovation survival. Future research can build upon this study’s findings in industries other than biotech and involving different sources of technology transfer (universities, etc.).     

How management team composition affects academic spin-offs’ entrepreneurial orientation: the mediating role of conflict

This research has been designed with the purpose of analysing the influence of both the composition of academic spin-offs’ management teams and the potential conflict emerged within such teams on the degree of entrepreneurial orientation exhibited by academic spin-offs. To this end, we have used the upper echelon theory as theoretical background and have analysed the impact of the proportion of non-academic managers within management teams, the heterogeneity of such teams with respect to the age and main educational area of their managers, as well as the potential mediating role of the conflict emerged. Drawing on a database of 167 Spanish academic spin-offs, results show, on the one hand, that the presence of non-academic managers within management teams is a key factor in the academic spin-offs' exhibitions of higher levels of entrepreneurial orientation and, on the other hand, that conflict fully mediates the relationship between management teams' age heterogeneity and entrepreneurial orientation.