Abstract
This article focuses on the performance of corporate spin-offs. The existing literature agrees that corporate spin-offs perform better than independent start-ups. However, systematic evidence on the subject still seems elusive. We therefore review articles that specifically address the performance of corporate spin-offs. Furthermore, we argue there is a need to distinguish between different types of spin-offs when evaluating their performances relative to independent start-ups. In particular, not all spin-offs have the fortune of access to parts of the resource base of their incumbent firm. We therefore suggest a distinction between whether the spin-off has direct or only indirect relations with their incumbent firm. A Danish sample of 325 companies (spinoffs and independent start-ups) shows that spin-offs in general perform better than independent start-ups. In the group of spin-offs, performance differences also exist. Spin-offs with indirect relations to an incumbent firm perform better than spin-offs with direct relations.
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