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.