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Where Do Spin-Offs Come From? Start-Up Conditions and the Survival of Pushed and Pulled Spin-Offs

In: Entrepreneurship, Human Capital, and Regional Development

Author

Listed:
  • Vera Rocha

    (Universidade do Porto, CEF.UP, CIPES, and Copenhagen Business School (INO))

  • Anabela Carneiro

    (Universidade do Porto and CEF.UP)

  • Celeste Varum

    (Universidade de Aveiro, GOVCOPP, and DEGEI)

Abstract

Although previous research shows that spin-offs are among the most successful firms in an industry, outperforming de novo entrants, few studies consider the heterogeneity of corporate spin-offs in relation to firm performance or survival. Against this backdrop, the objective of the present chapter is twofold. First, this study aims to add to our knowledge on the relationship between spin-off type and firm survival using a comprehensive matched employer-employee dataset from Portugal. After controlling for their different start-up conditions—namely regarding initial hiring schemes, business-owners’ characteristics, and the industrial and geographical relatedness to the parent firm—and a set of firm, industry, and macroeconomic characteristics, we found no significant survival differences between opportunity and necessity spin-offs. Second, based on the findings, we suggest that necessity spin-offs have not received the attention they deserve. Not only do necessity spin-offs perform an important role in the dynamics of competitive markets, by offering a possible solution for recently displaced individuals, but they also create new jobs and help to prevent the depreciation of workers’ human capital.

Suggested Citation

  • Vera Rocha & Anabela Carneiro & Celeste Varum, 2015. "Where Do Spin-Offs Come From? Start-Up Conditions and the Survival of Pushed and Pulled Spin-Offs," International Studies in Entrepreneurship, in: Rui Baptista & João Leitão (ed.), Entrepreneurship, Human Capital, and Regional Development, edition 127, chapter 0, pages 93-122, Springer.
  • Handle: RePEc:spr:inschp:978-3-319-12871-9_6
    DOI: 10.1007/978-3-319-12871-9_6
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    Cited by:

    1. Rocha, Vera & Carneiro, Anabela & Varum, Celeste, 2015. "What explains the survival gap of pushed and pulled corporate spin-offs?," Economics Letters, Elsevier, vol. 126(C), pages 127-130.

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