Spin-Off and Acquisition of Small Technology-Based Firms

Abstract

In a large technology-based firm, technology and innovations can be developed internally, although they can also be acquired from external sources, such as small technology-based firms. In addition, technology and innovation can be spun off from one organisation to another, perhaps from a large technology-based firm to establish a new spin-off firm. Nevertheless, innovation researchers, as well as policy-makers, have traditionally focused strongly on whether large or small firms are the most frequent, effective and/or efficient innovators, rather than on the interaction between these firms. Earlier studies have, for example, shown that small firms often have advantages in the early stages of the innovation process, while large firms have advantages in the later stages of scaling up innovations, and large and small firms can interact in several ways, such as through ownership changes. This chapter concentrates on ownership changes in the forms of acquisition and spin-off of small technology-based firms.KeywordsSmall FirmLarge FirmParent FirmPrevious EmployerOwnership ChangeThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.