UNIVERSITY SPINOFF ACTIVITIES Determinants and consequences  A conceptual framework Aluno:  Tiara Bicalho
Summary The objective of this study is to explain different aspects of the university spinoff behavior in a coherent way a...
Contextualization <ul><ul><li>Federal government in US provides more than $27.7 billion annually to the conduction of scie...
Summary The objective of this study is to explain different aspects of university spinoff behavior in a coherent way and t...
Roberts and Malone (1996)  Nicolaou and Birley (2003a) Spinoff Concepts Mechanism in which government seek to generate eco...
Summary The objective of this study is to explain different aspects of university spinoff behavior in a coherent way and t...
The Six Streams Determinants Consequences Individual Characteristics Organizational  Resources Institutional Característic...
Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteri...
The Six Streams Individual Characteristics Roberts (1991) <ul><li>Academic entrepreneurs with outgoing, extroverted person...
Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteri...
The Six Streams Organizational resources Level and nature of research funding <ul><li>The number of spinoff companies crea...
The Six Streams Organizational resources Technology incubators <ul><li>There is a need for universities to adopt a proacti...
Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteri...
The Six Streams Institutional Characteristics O’Shea at al. (2007) MIT founding mission and institutional support towards ...
Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteri...
The Six Streams Environmental Factors Institutional Characteristics Access to venture capital <ul><li>Recent research show...
Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteri...
The Six Streams Performance and Development Phases of Development <ul><li>New technology firms are more able to survive if...
Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteri...
The Six Streams Economic Development <ul><li>MIT graduates had founded  4,000 companies  by 1997, creating  1.1 million jo...
Summary The objective of this study is to explain different aspects of the university spinoff behavior in a coherent way a...
University Spinoff Framework
Summary The objective of this study is to explain different aspects of the university spinoff behavior in a coherent way a...
Conclusion <ul><li>Policy makers and universities are increasingly seeking to understand how best higher educational insti...
References O’SHEA et al. Determinants and consequences of university spinoff activity: a conceptual framework. Springer Ne...
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ImpressãO Spin Off Determinants Ans Consequences

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ImpressãO Spin Off Determinants Ans Consequences

  1. 1. UNIVERSITY SPINOFF ACTIVITIES Determinants and consequences A conceptual framework Aluno: Tiara Bicalho
  2. 2. Summary The objective of this study is to explain different aspects of the university spinoff behavior in a coherent way and to underline the importance of this activity for the economic development. Spinoff Concepts Contextualization The Six Streams University Spinoff Framework Conclusion
  3. 3. Contextualization <ul><ul><li>Federal government in US provides more than $27.7 billion annually to the conduction of scientific research; </li></ul></ul><ul><ul><li>The average research university in the US generates 1.91 spinoffs per annum, but it masks a skewed distribution (MIT spawned 31 spinoffs in one year alone). </li></ul></ul><ul><ul><li>Stimulate economies by spurring products development; </li></ul></ul><ul><ul><li>Create new industries; </li></ul></ul><ul><ul><li>Contribute to employment and wealth creation; </li></ul></ul><ul><ul><li>Use of knowledge in technological innovation. </li></ul></ul>Universities have come to be highly valued in terms of the economic potential of their research efforts . There is a pressure on universities to generate return from government research support. <ul><ul><li>US Context </li></ul></ul><ul><ul><li>Importance of Spinoff Activity </li></ul></ul>
  4. 4. Summary The objective of this study is to explain different aspects of university spinoff behavior in a coherent way and to underline the importance of this activity for the economic development. Spinoff Concepts Contextualization The Six Streams University Spinoff Framework Conclusion
  5. 5. Roberts and Malone (1996) Nicolaou and Birley (2003a) Spinoff Concepts Mechanism in which government seek to generate economic impact from their R&D by transferring technology from the R&D function to a commercial organization. Define spinoffs based on the parent R&D Organization: government R&D laboratory, the university, university research center, and private R&D organizations. Steffensen (1999) and Rogers (2001) <ul><li>The transfer of a core technology from an academic institution into a new company; </li></ul><ul><li>The founding member(s) may include the inventor academic(s) who may or may not </li></ul><ul><li>be currently affiliated with the academic institution . </li></ul>Challenge: identifying and replicating the processes that facilitate swift movement of technology from the ivory tower of academia to the front-line of industry .
  6. 6. Summary The objective of this study is to explain different aspects of university spinoff behavior in a coherent way and to underline the importance of this activity for the economic development. Spinoff Concepts Contextualization The Six Streams University Spinoff Framework Conclusion
  7. 7. The Six Streams Determinants Consequences Individual Characteristics Organizational Resources Institutional Característics (Culture) Environmental Factors University Spinoff Activity Performance & Development Economic Development The existing literature on academic spinoff can be categorized into six separate streams that captures the determinants and consequences of spinoff activity.
  8. 8. Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteristics Performance and Development Economic Development Spinoff Concepts Contextualization
  9. 9. The Six Streams Individual Characteristics Roberts (1991) <ul><li>Academic entrepreneurs with outgoing, extroverted personalities were more likely to engage in spinoff activity; </li></ul><ul><li>Personal characteristics such as the need for achievement, the desire for independence and an internal locus of control is common between successful entrepreneurs and scientists. </li></ul>Audretsch’s (2000) University entrepreneurs tended to be older and more scientifically experienced than ‘‘typical’’ high-technology entrepreneurs. Spinoff behavior is a reflection of individual actions and therefore is largely due to the personality, ability, career choice, or willingness of the individual to engage successfully in entrepreneurial behavior .
  10. 10. Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteristics Performance and Development Economic Development Spinoff Concepts Contextualization
  11. 11. The Six Streams Organizational resources Level and nature of research funding <ul><li>The number of spinoff companies created from UK universities was associated with R&D expenditure; </li></ul><ul><li>Industry-funded faculty members tend to be more commercially productive than their </li></ul><ul><li>government-funded counterparts. </li></ul>Nature of the research The nature of university science and engineering funding with a particular orientation in the biological sciences, computer science and chemistry disciplines had a positive and statistically significant effect on spinoff formation rates. Quality of the researchers Faculty members who develop leading edge innovations may wish to earn economic rents on valuable asymmetric information. It may be easier for academics from top tier universities to assemble resources to create start-ups for reasons of credibility. There are links between spinoff activity and the level and nature of research funding, the quality of the researchers, the nature of the research within the university, and the presence of technology incubators and technology transfer offices.
  12. 12. The Six Streams Organizational resources Technology incubators <ul><li>There is a need for universities to adopt a proactive highly selective and supportive model for spinoff development; </li></ul><ul><li>3 Incubation Models: </li></ul><ul><li>Low Selective: maximizing the nº of spinoffs created; </li></ul><ul><li>Supportive : generate revenue from spinoffs ; </li></ul><ul><li>Incubator model: financial gain at the point of exit. </li></ul>Technology transfer offices (TTO) <ul><li>TTO’s role : </li></ul><ul><li>Assuming the role of principal decision maker while they evaluate the invention; </li></ul><ul><li>Making arrangements for the legal protection of the technology; </li></ul><ul><li>Directing the entrepreneurs to venture capitalists; </li></ul><ul><li>Establishing their representation on the board of the company. </li></ul>Having the right mix of governance structures (i.e. matrix structures), processes (i.e. seed capital fund, patent protection, business plan and new venture development services) and context contributes to a successful generation of spinoff companies. .
  13. 13. Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteristics Performance and Development Economic Development Spinoff Concepts Contextualization
  14. 14. The Six Streams Institutional Characteristics O’Shea at al. (2007) MIT founding mission and institutional support towards entrepreneurial activities played an important role in the development of academic entrepreneurship. Siegel et al.(2004) <ul><li>To foster climate of entrepreneurship in academic context : </li></ul><ul><li>university policies to facilitate UITT; </li></ul><ul><li>increasing the level of resources to UITT; </li></ul><ul><li>working to eliminate cultural barriers that impede the UITT process. </li></ul>George at al. (2006) The extent to which institutional factors were viewed as being supportive (internal norms, TTO receptiveness), the more likely scientists were prepared to participate in technology transfer activity. Ndonzuau et al. (2002) Some cultural factors such as the ‘publish or perish’ drive, the ambiguous relationship of researchers to money, and the ‘disinterested’ nature of academic research to industry are seen as inhibitors to the academic spinoff activity. Universities with cultural norms that support commercialization activity will have higher levels of commercialization and higher rates of spinoff activity.
  15. 15. Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteristics Performance and Development Economic Development Spinoff Concepts Contextualization
  16. 16. The Six Streams Environmental Factors Institutional Characteristics Access to venture capital <ul><li>Recent research shows that access to venture capital is the most important resource constraint faced by universities; </li></ul><ul><li>Industry functioning as venture capitalists via joint venture spinoffs may facilitate the emergence of university spinoffs as they have the necessary financial resources and commercial expertise. </li></ul>Legal assignment of inventions <ul><li>The nº of patenting and licensing activities has increased since the Bayh-Dole Act whereby inventions were assigned to academic institutions rather than individual inventors; </li></ul><ul><li>In Europe, some national policies which allow inventions to be assigned to academic inventors, have inhibited spinoff activity. </li></ul>Knowledge and industry infrastructure <ul><li>The entire network infrastructure of entrepreneurial managers, customers and suppliers, tend to be an important factor to starting a university spinoff firm; </li></ul><ul><li>The phenomenon of entrepreneurial universities supported by incubating technopole regions with a strong commercial tradition is a crucial element to the spinoff activity. </li></ul>Four factors that could impact spinoff activity: access to venture capital, legal assignment of inventions, knowledge infrastructure in the region, and industry structure.
  17. 17. Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteristics Performance and Development Economic Development Spinoff Concepts Contextualization
  18. 18. The Six Streams Performance and Development Phases of Development <ul><li>New technology firms are more able to survive if they exploit radical technologies and if they posses patents with a broad scope; </li></ul><ul><li>Linkages to investors were found to be important determinants of whether the business received venture funding and in reducing the likelihood of spinoff failure. </li></ul>Performance Vohora et al. (2004) Vanaelst et al.(2006) Opportunity Recognition Entrepreneurial Commitment Credibility Sustainability Spinoffs modify, refine and develop their business model as they improve their knowledge of resources and opportunities. Spinoff development is an iterative and non-linear process.
  19. 19. Summary The Six Streams Organizational Resources Institutional Characteristics Environmental Factors Individual Characteristics Performance and Development Economic Development Spinoff Concepts Contextualization
  20. 20. The Six Streams Economic Development <ul><li>MIT graduates had founded 4,000 companies by 1997, creating 1.1 million jobs worldwide and generating annual sales of $232 billion; </li></ul><ul><li>Spinoffs from American academic institutions between 1980 and 1999 have contributed 280,000 jobs to the US economy and $33.5 billion in economic value-added activity. </li></ul>Economic Impact of Spinoff Activity University spinoffs are an important subset of start-up firms because they are an economically powerful group of high-technology companies.
  21. 21. Summary The objective of this study is to explain different aspects of the university spinoff behavior in a coherent way and to underline the importance of this activity for the economic development. Spinoff Concepts Contextualization The Six Streams University Spinoff Framework Conclusion
  22. 22. University Spinoff Framework
  23. 23. Summary The objective of this study is to explain different aspects of the university spinoff behavior in a coherent way and to underline the importance of this activity for the economic development. Spinoff Concepts Contextualization The Six Streams University Spinoff Framework Conclusion
  24. 24. Conclusion <ul><li>Policy makers and universities are increasingly seeking to understand how best higher educational institutions can contribute to both their traditional functions and the added function of making the regional or national economy more competitive. </li></ul><ul><li>The conceptual framework presented should aid researchers in completing a much-needed assessment of the impact of organizational policies, practices and structures on university entrepreneurship. </li></ul><ul><li>The framework presented suggests that university heads and policy makers can encourage and develop university entrepreneurship by using a comprehensive systems approach for the identification, protection and commercialization of university intellectual property. </li></ul>
  25. 25. References O’SHEA et al. Determinants and consequences of university spinoff activity: a conceptual framework. Springer Netherlands.2008 Roberts, E., & Malone, D. E. Policies and structures for spinning off new companies from research and development organizations. R&D Management.1996 Nicolaou, N., & Birley, S. Academic networks in a trichotomous categorisation of university spinouts.Journal of Business Venturing. 2003 Ndonzuau, F. N., Pirnay, F., & Surlemont, B. (2002). A stage model of academic spin-off creation. Technovation. 2002 George, G., Jain, S., & Maltarich, M. Academics or entrepreneurs: Entrepreneurial identity and invention disclosure behavior of university scientists. Paper presented at the University Technology Transfer and Commercialization of Research. 2006

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