University Spin-out Research Articles

Forecasting the Acquisition of University Spin-Outs: An RBF Neural Network Approach

University spin-outs (USOs), creating businesses from university intellectual property, are a relatively common phenomena. As a knowledge transfer channel, the spin-out business model is attracting extensive attention. In this paper, the impacts of six equities on the acquisition of USOs, including founders, university, banks, business angels, venture capitals, and other equity, are comprehensively analyzed based on theoretical and empirical studies. Firstly, the average distribution of spin-out equity at formation is calculated based on the sample data of 350 UK USOs. According to this distribution, a radial basis function (RBF) neural network (NN) model is employed to forecast the effects of each equity on the acquisition. To improve the classification accuracy, the novel set-membership method is adopted in the training process of the RBF NN. Furthermore, a simulation test is carried out to measure the effects of six equities on the acquisition of USOs. The simulation results show that the increase of university’s equity has a negative effect on the acquisition of USOs, whereas the increase of remaining five equities has positive effects. Finally, three suggestions are provided to promote the development and growth of USOs.

University Spin-outs: What do we know and what are the policy implications? Evidence from the UK

This letter from academia reviews the academic literature and provides an overview of the trends in spin-outs from universities in the UK. We argue that it is important to develop a more comprehensive ecosystem for academic entrepreneurship that includes a wider range of actors and mechanisms. We outline a framework of such an ecosystem and accompanying research agenda.

Book review of "The Fountain of Knowledge: The Role of Universities in Economic Development"

Breznitz, Shiri M. (2014). The Fountain of Knowledge: The Role of Universities in Economic Development. Stanford: Stanford Press. Pages: 197. Price: $60.00 USD (cloth).The fountains of as a phrase was first used by John Locke in Essay Concerning Human Understanding, published in 1690, to describe how knowledge is founded, i.e., that all the ideas we have spring from either our observations about sensible objects or our internal reflections. Professor Breznitz's book examines the more restricted topic of the commercialization of biotechnology research at Yale and Cambridge Universities. An accurate title would be University technology transfer: Two case studies in the USA and the The primary audience for this book is that of technology transfer officers and university administrators in the biosciences. Breznitz, an economic geographer, collected data from interviews, documents and reports, on the regional economy, the and companies, with a total of 69 in depth interviews in Cambridgeshire and 46 in New Haven, Connecticut, between 2003 and 2008 with updates in 2013.The book begins with an examination of the traditional roles of universities as research and teaching with an acknowledged pressure on modern universities to pay back the as a third role. The higher education literature [see Donald (1997), Improving the environment for learning] cites a continuum of five roles of the university in interaction with the community, from universal to local: as an intellectual or nerve center of a learning society, as a center for research and technological advance, as a critic of society, as a guide to society for the betterment of human kind, and in the education of students to meet the job requirements of society. In her Tale of two renowned universities, Cambridge ranking third and Yale ranking tenth in the Times Higher Education World rankings for 2013, Breznitz notes the mission of Cambridge to contribute to society at the highest international levels of excellence. She also notes its noncontrolling policy toward commercial exploitation of academic know-how and links with industry generally. Yale is introduced as having a historical culture of non-involvement with the community in general and with industry in particular in the early 1990s.The research literature on technology transfer in Chapter 2 is divided into external and internal factors. Most notable among the external factors is government legislation that ranges from the intended missions and funding of universities to intellectual property policies and tax incentives provided by governments. Environmental factors describe relationships between institutions on national and regional levels. Internal factors include culture, policy and organization. Within the university culture, Clark's (1998) concept of instrumental interactivism, the interaction of all elements and policies in the university, is introduced as key to the transformation of a university. A significant policy issue is the share of royalties allocated to inventors. A higher percentage of royalties to faculty members tends to increase the number of inventions licensed to existing companies, but to decrease the number of university spin-outs. The higher the inventor's royalty share, the lower the incentive to spin out a company. In the two case studies, Cambridge provides a higher share to inventors, while Yale provides a lower share, which promotes the creation of spin-out companies. The third set of internal factors are concerned with the organization of technology transfer offices: personnel, business experience and past success. Breznitz states that the technology transfer office is the university resource with the strongest impact on the creation of spin-out companies.Most salient in the historical and national frameworks of the two countries described in Chapter 3 is the early emphasis on conducting applied research in the land grant universities as stipulated in the US federal government's Morrill Acts of 1862 and 1890, and the contrasting late entry of government funding for research after the second world war in the UK. …

Redefining roles and identities in higher education: the liminal experiences of a university spinout company

Across many developed economies, policy foregrounds the role of innovation in stimulating economic recovery and underpinning growth. Higher education is expected to contribute significantly to the innovation agenda. This paper examines one example of innovation in the UK higher education context, namely the creation of a spinout company, and explores its implications for the individual knowledge worker. Focusing on the developing professional identities of those involved, the narrative draws on data from an ethnographic study of the birth of a university spinout company and its eventual launch as an independent company. Utilising the concept of ‘third space’ to frame the spinout experience, it argues that individuals engaging in ‘innovative’ activities of a commercial nature in higher education develop hybrid roles at the margins of their organisations. The extent to which these are tenable over the longer term is debated.

Sustainability and scalability of university spinouts: a business model perspective

Most previous studies of university spinouts (USOs) have focused on what determines their formation from the perspectives of the entrepreneurs or of their parent universities. However, few studies have investigated how these entrepreneurial businesses actually grow and how their business models evolve in the process. This paper examines the evolution of USOs' business models over their different development phases. Using empirical evidence gathered from three comprehensive case studies, we explore how USOs' business models evolve over time, and the implications for the financial sustainability and operational scalability of these ventures. This paper extends existing research on the development of USOs, and highlights three themes for future research.

Can Perceived Support for Entrepreneurship Keep Great Faculty in the Face of Spinouts?

Despite the recent increase in academic entrepreneurship research, we still know relatively little about the degree of involvement of academic inventors in university spinouts. In this study, we distinguish between academic inventors who leave the university after the creation of a spinout (academic exodus) and those who maintain their university affiliation (academic stasis). Drawing from the literature on innovation‐supportive climates and from organizational support theory, we argue that perceptions of institutional support and departmental norms regarding entrepreneurship are associated with the exodus versus stasis decision. We find that inventors who have higher perceptions of institutional support for entrepreneurship are less likely to leave. This relationship is enhanced by perceptions of favorable departmental norms toward entrepreneurship. We discuss the implications of our work for the literature on academic entrepreneurship, innovation‐supportive climates, and perceived organizational support. Our study has clear policy implications for universities, policymakers, and funders who aim to stimulate academic entrepreneurship, but are concerned about losing entrepreneurial faculty. Specifically, we advise universities and policymakers to actively support academic inventors wishing to spin out and to monitor this support in a customer‐friendly manner, in order to ensure that the inventors' perceptions of support are favorable. It is also important for universities to look out for inconsistencies between a supportive environment for entrepreneurship at the institutional level and unfavorable norms toward entrepreneurship at the departmental level; such inconsistencies can lead good faculty members out of academia. More broadly, universities can pursue an aggregation strategy that aims to retain both a research and commercialization identity while building strong links between them.

Science: a world without borders.

Science: a world without borders.

Early Business Model Evolution in Science-based Ventures: The Case of Advanced Materials

Business models of many types have received attention in recent management research, but less work has focused on models suited to the commercialization of scientific research in areas such as biotech, green tech and advanced materials. University spin-outs (USOs) are often required to demonstrate the potential value and viability of generic new technologies, but there has been little work to date looking at appropriate business models for these new firms. This study investigates how the business models of advanced material USOs often develop by trial and error in response to their unique challenges. Many of the most commonly recommended strategies and resultant models do not translate directly into practice for ventures with generic, early-stage technologies, particularly those that have to commit considerable resources and attract funds and partners early on. Case exemplars reveal business models and strategies that have been successful, and also less successful, in creating value from science-based innovations of advanced material USOs. This evidence informs our conclusions and recommendations.

Toxgnostics: predicting and preventing chemotherapy-induced side effects.

Toxgnostics: predicting and preventing chemotherapy-induced side effects.

Coping with the financiers: attracting venture capital investors and end-users in the biomaterials industry

A substantial amount of research has been committed to exploring how university-based research can be transferred to industry and be commercialised. This literature emphasises the substantial institutional, cultural and financial barriers to what has been referred to as academic entrepreneurship. At the same time, and most noteworthy in the USA, university patenting has grown remarkably since the mid-1960s; today (2014), much of the basic life science research conducted by universities is being transformed into health care innovations. This paper reports on a case study of the biomaterials and medical device industry in Sweden and emphasises that, while capital funding is a key challenge for university spin-outs, an additional and less widely recognised concern facing these companies is how to make the public sector health care organisations, primarily, actually buy the products developed. The study suggests that perhaps too much emphasis is being put on ‘upstream activities’, including the early stage support provided by incubators and state agencies that provide seed-money funding, while more mature biomaterials and medical device companies are suffering from both a lack of unified regulatory frameworks and policies governing the procurement of new health care innovations.

Building global products and competing in innovation: the role of Chinese university spin-outs and required innovation capabilities

Usually, firms that produce innovative global products are discussed within the context of developed countries. New ventures in developing countries are typically viewed as low-cost product providers that generate technologically similar products to those produced by developed economies. However, this paper argues that some Chinese university spin-outs (USOs), although rare, have adopted a novel 'catch-up' strategy to build global products on the basis of indigenous platform technologies. This paper attempts to develop a conceptual framework to address the question: how do these specific Chinese USOs develop their innovation capabilities to build global products? In order to explore the idiosyncrasies of the specific USOs, this paper uses the multiple case studies method. The primary data sources are accessed through semi-structured interviews. In addition, archival data and other materials are used as secondary sources. The study analyses the configuration of capabilities that are needed for idiosyncratic growth, and maps them to the globalisation processes. This paper provides a strategic 'roadmap' as an explanatory guide to entrepreneurs, policy makers and investors to better understand the phenomena.

Commercialisation of University Research: An Investigation of Researchers’ Behaviour

Higher Education Institutions (HEIs) have been identified as one of the key factors for the growth and development of a nation. This is reflected in the vast amount of investment of public funds into research activities among the HEIs by the Malaysia government. Such a move is embraced by both developed and developing nations in the hopes of reaping the benefits in terms of the enrichment of knowledge, development of expertise and human capital and more tangibly in terms of the intellectual properties (IPs) produced by the research activities. Often the IPs would have commercial potential and there are numerous avenues for commercialising such IPs. However, often only small percentages of the RD most are treated as just another academic exercise. Thus, the challenge is driving the researchers in the HEIs to ensure R&D doesn’t end with publication of findings only, but it flows continuously into C – commercialisation, which includes the creation of university spin-out (USO). This study investigates the researchers’ behaviour in terms of conducting research, exploiting the results and ultimately commercialising their innovations.

Technology Transfer Models Between Industrial Biotechnology Companies and Academic Spin-Offs

Technology Transfer Models Between Industrial Biotechnology Companies and Academic Spin-Offs

Conducting retrospective impact analysis to inform a medical research charity's funding strategies: the case of Asthma UK.

BackgroundDebate is intensifying about how to assess the full range of impacts from medical research. Complexity increases when assessing the diverse funding streams of funders such as Asthma UK, a charitable patient organisation supporting medical research to benefit people with asthma. This paper aims to describe the various impacts identified from a range of Asthma UK research, and explore how Asthma UK utilised the characteristics of successful funding approaches to inform future research strategies.MethodsWe adapted the Payback Framework, using it both in a survey and to help structure interviews, documentary analysis, and case studies. We sent surveys to 153 lead researchers of projects, plus 10 past research fellows, and also conducted 14 detailed case studies. These covered nine projects and two fellowships, in addition to the innovative case studies on the professorial chairs (funded since 1988) and the MRC-Asthma UK Centre in Allergic Mechanisms of Asthma (the ‘Centre’) which together facilitated a comprehensive analysis of the whole funding portfolio. We organised each case study to capture whatever academic and wider societal impacts (or payback) might have arisen given the diverse timescales, size of funding involved, and extent to which Asthma UK funding contributed to the impacts.ResultsProjects recorded an average of four peer-reviewed journal articles. Together the chairs reported over 500 papers. All streams of funding attracted follow-on funding. Each of the various categories of societal impacts arose from only a minority of individual projects and fellowships. Some of the research portfolio is influencing asthma-related clinical guidelines, and some contributing to product development. The latter includes potentially major breakthroughs in asthma therapies (in immunotherapy, and new inhaled drugs) trialled by university spin-out companies. Such research-informed guidelines and medicines can, in turn, contribute to health improvements. The role of the chairs and the pioneering collaborative Centre is shown as being particularly important.ConclusionsWe systematically demonstrate that all types of Asthma UK’s research funding assessed are making impacts at different levels, but the main societal impacts from projects and fellowships come from a minority of those funded. Asthma UK used the study’s findings, especially in relation to the Centre, to inform research funding strategies to promote the achievement of impact.

Value creation from the innovation environment: partnership strategies in university spin‐outs

University spin‐out (USO) companies play an increasingly important role in generating value from radical, generic technologies, but this translation requires significant resources from other players to reach the market. Seven case studies illuminate how relationships with each type of partner can be leveraged to help the firm create value. We find that most firms in the sample are aware of the importance of corporate partners and actively seek to cultivate these relationships, but may not be taking full advantage of the resources available through nonparent academic institutions and otherUSOswith similar or complementary technologies.

Hub History Llogic Mechanisms and the Network Dynamics of Early-stage University Spinouts

Research universities execute technology transfer initiatives to transition university inventions to marketplace innovations. One type of licensing corporate entity, and the focus of this research,...

Formal Venture Capital Acquisition: Can Entrepreneurs Compensate for the Spatial Proximity Benefits of South East England and ‘Star’ Golden-Triangle Universities?

Building on the resource-based view of the firm and signalling theory, we challenge the traditional perspective that spatial proximity benefits can be leveraged by university spin-outs (USOs) located in the South East of England (particularly those drawn from ‘star’ golden-triangle universities with additional reputational benefits), and that USOs located elsewhere will be constrained from obtaining first formal venture capital (VC) required for venture development. With the aid of a longitudinal database of 134 USOs involving unique archival and survey data, event-history analysis identified, counter to the traditional perspective, that USOs located outside the South East of England were significantly more likely to obtain formal VC. Also, counter to the spatial proximity benefits view, star golden-triangle USOs were not significantly more likely to obtain VC. Our evidence supports a spatial mismatch view between investors and investees. Resource-combination signals sent by USOs and favourably received by VC firms were found to differ according to USO location context: USOs located outside the South East of England and star golden-triangle universities that signal the credible presence of habitual founders were more likely to obtain VC. USOs located outside star golden-triangle universities that had previously obtained publicly backed equity finance were also more likely to obtain VC. However, USOs located in the South East of England with reputable management teams were most likely to obtain VC.

Do Academic Spin-Outs Differ and Does it Matter?

Questioning the widespread tendency to view academic spin-outs as a homogenous category, the paper explores typologies of these companies using a Penrosean conceptualisation of entrepreneurial activity. We initially identify five main types of business activities pursued by academic entrepreneurs, which we revise after analysing a database of Cambridge University spin-outs and real-time exemplars of emerging ventures. The refined typology takes into account the dynamic of the entrepreneurial process. As the business models of ventures evolve they may enter a different category of business activity. We conclude by discussing the academic and practical needs for a better understanding of the heterogeneity of spin-outs, the diversity of which has theoretical and policy implications.

News: Coventry hydrogen fuel station creates West Midlands ring

The West Midlands now has a 'hydrogen ring', following the official opening this month of a third fuelling station for hydrogen-powered vehicles. The site at Coventry University's technology park complements those at the Universities of Birmingham and Loughborough. The hydrogen fuel pumps are part of a regional project called CABLED (Coventry and Birmingham Low Emission Vehicle Demonstrators), which is to test a fleet of 108 alternative-fuelled vehicles. Most of these will be electric, but eight are hydrogen fuel-cell/electric hybrid Microcabs, developed by a Coventry University spin-out company.

BUILDING INNOVATION CAPABILITIES: AN INQUIRY INTO THE DYNAMIC GROWTH PROCESS OF UNIVERSITY SPIN-OUTS IN CHINA

This research aims to develop a conceptual framework in order to inquire into the dynamic growth process of university spin-outs (hereafter referred to as USOs) in China, attempting to understand the configuration of capabilities that are necessary for dynamic growth. Based on the extant literature and empirical cases, the study attempts to address the following question: How do USOs in China build and configure the innovation capabilities to cope with the dynamic growth? This paper aims to contribute to the existing literature by providing a theoretical discussion on the USOs' dynamic entrepreneurial process, by investigating the interconnections between innovation problem-solving and the required configuration of innovation capabilities in four growth phases. Further, it takes particular interest in the integrative capabilities and their impact on the USOs' entrepreneurial innovation process, in terms of knowledge integration, alliance, venture finance and venture governance. To date, studies have investigated the dynamic development process of USOs in China and have recognized the heterogeneity of USOs. Yet studies of capabilities that are required for rapid growth remain sparse. Addressing this research gap will be of great interest to entrepreneurs, policy-makers and venture investors.