Spinning-off or Licensing?

Abstract

Different mechanisms are available when universities embark on technology transfer to the private sector. This paper focuses on the option of intellectual property licensing of technologies. In particular, the authors examine why academics who are in a position to create a spin-off opt for licensing, in the context of the universities' rationale for technology transfer, the nature and performance of their technology transfer institutions and the motivations behind the academics' decisions. The case study focuses on South Africa's two oldest and premier research-led universities, based in the Western Cape region. The results show that technologies originated mainly from the engineering and health sciences and the biotechnology industries; technologies were created through collaboration among researchers; they were mainly patented worldwide; and the researchers chose to license the technology in order to convert their knowledge into practical applications, to use existing knowledge fully and to make a financial profit. The most important factors influencing the decision of an inventor/researcher not to create a spin-off company were funding, commercialization and distribution.