The Relevance of the Economic Environment to the Development and Growth of Academic Spin-Offs. A Panel Approach

Ivano De Turi,Margaret Antonicelli

doi:10.5539/ibr.v13n8p56

Ivano De Turi, Margaret Antonicelli

Open Access

https://doi.org/10.5539/ibr.v13n8p56

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Abstract

The importance of academic research (&quot;AR&quot;) to economic growth is widely accepted but quantification of incremental impacts, and their attribution to any one country&#39;s expenditures, is difficult. Yet quantitative justification of government AR funding is highly desirable. We therefore attempt to quantify one impact which can be directly and causally attributed to one country&#39;s funding: spin-off companies.  Although there is great interest in the new knowledge economy, less favoured regions seem permanently disadvantaged because they lack a critical mass of knowledge capital to initiate accumulation, growth and economic development processes. This is a problem for policy-makers seeking to promote economic growth and territorial cohesion in such regions. This paper seeks to develop four empirical models of how Academic spin-off companies can improve their economic performances. The economic benefits that such companies bring are explored, to identify those elements which can potentially upgrade regional economies through knowledge accumulation, which are termed &lsquo;building up territorial knowledge pools&rsquo;.  We argue that the impacts of valid and ongoing policies in support of the Third Mission represent incremental contributions to the ROI of academic spin-offs, much greater (also on a updated base). The impacts therefore provide a quantitative justification for public investment, allowing much more important (but less quantifiable) long-term benefits be considered as a &quot;free&quot; bonus.

Highlights

1.1 Introduce the ProblemThe pursuit of territorial development goals is strongly anchored to the ability to create, by the institutions present, a fertile environment for contamination between public and private bodies with the same purpose: territorial competitiveness
We argue that the impacts of valid and ongoing policies in support of the Third Mission represent incremental contributions to the ROI of academic spin-offs, much greater
The concept of the National Innovation System is based on the premise that understanding the links between the actors involved in innovation is the key to improving technology performance

Summary

Introduction

1.1 Introduce the ProblemThe pursuit of territorial development goals is strongly anchored to the ability to create, by the institutions present, a fertile environment for contamination between public and private bodies with the same purpose: territorial competitiveness. The scientific contributions drawn up on the connection among technology transfer, entrepreneurship and territorial competitiveness date back to the late 1980s In this context, several publications have been developed concerning the National Innovation System (Lundvall, 1992). The innovative performance of a country depends, largely, on how these actors relate to each other, as elements of a collective system of knowledge creation and use, as well as the technologies they use. These actors are mainly private companies, universities and public research institutes and the people within them. In collaboration and interdependence with other subjects that can be both businesses (suppliers, customers, partners, etc.) and subjects other than businesses

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