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The Formation of High-Tech University Spinouts: The Role of Joint Ventures and Venture Capital Investors

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Author Info
Mike Wright ()
Ajay Vohora
Andy Lockett ()

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Abstract

We explore the joint venture route to commercializing university owned intellectual property. We present comparisons between two spinouts formed as joint ventures between universities and industrial partners and two spinouts where this was not the case. The research employs a resource-based framework, with new high tech spinout firms (or firms in gestation) facing severe resource and capability constraints. We show that spinouts typically lack the financial means and managerial expertise to acquire the resources and develop the capabilities they need in order to fully exploit the commercial potential of their technologies. We argue that creating a spinout company as a joint venture with an industrial partner, may be a means of overcoming some of the potential problems associated with managing resource weaknesses and inadequate capabilities that may be difficult to achieve as a free-standing spin-out company with or without venture capital backing.

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Publisher Info
Article provided by Springer in its journal The Journal of Technology Transfer.

Volume (Year): 29 (2004)
Issue (Month): 3_4 (08)
Pages: 287-310
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Handle: RePEc:kap:jtecht:v:29:y:2004:i:3_4:p:287-310

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Web page: http://www.springerlink.com/link.asp?id=104998

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  1. Landström, Hans & Gabrielsson, Jonas & Brunsnes, Thomas, 2006. "A Knowledge-based Categorization of Research-based Spin-off Creation," CIRCLE Electronic Working Paper Series 2006-06, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University. [Downloadable!]
  2. Liliana Doganova & Marie Renault, 2008. "What do business models do? Narratives, calculation and market exploration," Post-Print halshs-00347615_v1, HAL. [Downloadable!]
  3. Junfu Zhang, 2009. "The performance of university spin-offs: an exploratory analysis using venture capital data," The Journal of Technology Transfer, Springer, vol. 34(3), pages 255-285, June. [Downloadable!] (restricted)
  4. Knockaert, M. & Clarysse, B. & Wright, M. & Lockett, A., 2008. "Agency and similarity effects and the VC's attitude towards academic spin-out investing," Vlerick Leuven Gent Management School Working Paper Series 2008-22, Vlerick Leuven Gent Management School. [Downloadable!]
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  5. Rory O’Shea & Harveen Chugh & Thomas Allen, 2008. "Determinants and consequences of university spinoff activity: a conceptual framework," The Journal of Technology Transfer, Springer, vol. 33(6), pages 653-666, December. [Downloadable!] (restricted)
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