Does One Size Fit All? The Multiple Organizational Forms Leading to Successful Academic Entrepreneurship

Abstract

This paper offers an integrative theory, through the use of transaction cost theory principles, that attempts to match the attributes of university–held innovations with the specific organizational form that best supports the identified attributes in innovation commercialization efforts. Two commonly utilized organizational forms are considered: the spin–off and the technology license agreement. Additionally, innovation transfer is conceptualized as a transaction and each of the organizational forms is considered an alternate governance mechanism for the management of the commercialization transaction. It is further conceptualized that by minimizing transaction costs, through the proper selection of the organizational form, universities may increase the odds of successful revenue generation from their entrepreneurial efforts. The overall goal of the paper is to enhance our understanding of proper organizational form–innovation attribute alignment as a key driver of innovation commercialization success, so that universities and their industry partners can increase their effectiveness in commercialization activities.