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Signaling in academic ventures: the role of technology transfer offices and university funds

Author

Listed:
  • Paolo Gubitta

    (University of Padova)

  • Alessandra Tognazzo

    (University of Padova)

  • Federica Destro

    (University of Padova
    Fondazione Filarete per le Bioscienze e l’Innovazione)

Abstract

University spinoffs, an important subset of high-tech start-up companies, operate in a context characterized by marked information asymmetries that limit their chances of obtaining financing. Given the uncertainty and imperfect information that characterize these investment opportunities, signals about their potential value deserve further attention. We investigate the relationship between the main stakeholders involved in the process of creating a university spinoff—that is, the academic founders, the university technology-transfer office, and private investors—focusing on the role of public grants as effective signals that attract private venture capital (VC) funding. Using the database of all spinoff companies established to exploit inventions assigned to the University of Michigan from 1999 to 2010, we determine how the funds provided through the university technology-transfer office influence VC follow-on funding and consequent spinoff growth, controlling for the spinoff’s technology, the founders’ human capital, and the network’s resources. The empirical results support a signaling effect of the commercialization funds provided by the university and suggest an indirect impact on the growth of the spinoff’s sales through the mediating effect of VC financing.

Suggested Citation

  • Paolo Gubitta & Alessandra Tognazzo & Federica Destro, 2016. "Signaling in academic ventures: the role of technology transfer offices and university funds," The Journal of Technology Transfer, Springer, vol. 41(2), pages 368-393, April.
    • Handle: RePEc:kap:jtecht:v:41:y:2016:i:2:d:10.1007_s10961-015-9398-7
    DOI: 10.1007/s10961-015-9398-7
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    Cited by:

    1. Christopher S. Hayter & Andrew J. Nelson & Stephanie Zayed & Alan C. O’Connor, 2018. "Conceptualizing academic entrepreneurship ecosystems: a review, analysis and extension of the literature," The Journal of Technology Transfer, Springer, vol. 43(4), pages 1039-1082, August.
    2. Soares, Thiago J. & Torkomian, Ana L.V., 2021. "TTO's staff and technology transfer: Examining the effect of employees' individual capabilities," Technovation, Elsevier, vol. 102(C).
    3. Carolin Bock & Alexander Huber & Svenja Jarchow, 2018. "Growth factors of research-based spin-offs and the role of venture capital investing," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1375-1409, October.
    4. Kaiser, Ulrich & Kuhn, Johan Moritz, 2019. "Who Founds? An Analysis of University and Corporate Startup Entrepreneurs Based on Danish Register Data," IZA Discussion Papers 12191, Institute of Labor Economics (IZA).
    5. FUKUGAWA Nobuya, 2023. "Determinants of Commercialization Modes of Science: Evidence from panel data of university technology transfer in Japan," Discussion papers 23053, Research Institute of Economy, Trade and Industry (RIETI).
    6. FUKUGAWA Nobuya, 2022. "Effects of the Quality of Science and Innovation on Venture Finance: Evidence from University Spinoffs in Japan," Discussion papers 22006, Research Institute of Economy, Trade and Industry (RIETI).
    7. Nobuya Fukugawa, 2022. "Effects of the quality of science on the initial public offering of university spinoffs: evidence from Japan," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(8), pages 4439-4455, August.
    8. Marius Tuft Mathisen & Einar Rasmussen, 2019. "The development, growth, and performance of university spin-offs: a critical review," The Journal of Technology Transfer, Springer, vol. 44(6), pages 1891-1938, December.
    9. Francisco Javier Miranda & Antonio Chamorro & Sergio Rubio, 2018. "Re-thinking university spin-off: a critical literature review and a research agenda," The Journal of Technology Transfer, Springer, vol. 43(4), pages 1007-1038, August.
    10. Lauto, Giancarlo & Salvador, Elisa & Visintin, Francesca, 2022. "For what they are, not for what they bring: The signaling value of gender for financial resource acquisition in academic spin-offs," Research Policy, Elsevier, vol. 51(7).
    11. Julian Bafera & Simon Kleinert, 2023. "Signaling Theory in Entrepreneurship Research: A Systematic Review and Research Agenda," Entrepreneurship Theory and Practice, , vol. 47(6), pages 2419-2464, November.
    12. Good, Matthew & Knockaert, Mirjam & Soppe, Birthe & Wright, Mike, 2019. "The technology transfer ecosystem in academia. An organizational design perspective," Technovation, Elsevier, vol. 82, pages 35-50.
    13. Daniel Leunbach & Truls Erikson & Max Rapp-Ricciardi, 2020. "Muddling through Akerlofian and Knightian uncertainty: The role of sociobehavioral integration, positive affective tone, and polychronicity," Journal of International Entrepreneurship, Springer, vol. 18(2), pages 145-164, June.
    14. Coad, Alex & Kaiser, Ulrich & Kuhn, Johan, 2021. "Spin doctors vs the spawn of capitalism: Who founds university and corporate startups?," Research Policy, Elsevier, vol. 50(10).
    15. Tali Hadasa Blank & Abraham Carmeli, 2021. "Does founding team composition influence external investment? The role of founding team prior experience and founder CEO," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1869-1888, December.
    16. Natalya Radko & Maksim Belitski & Yelena Kalyuzhnova, 2023. "Conceptualising the entrepreneurial university: the stakeholder approach," The Journal of Technology Transfer, Springer, vol. 48(3), pages 955-1044, June.
    17. Carsten Schultz & Oliver Gretsch & Alexander Kock, 2021. "The influence of shared R&D-project innovativeness perceptions on university-industry collaboration performance," The Journal of Technology Transfer, Springer, vol. 46(4), pages 1144-1172, August.
    18. Kim, Juram & Hong, Suckwon & Kang, Yubin & Lee, Changyong, 2023. "Domain-specific valuation of university technologies using bibliometrics, Jonckheere–Terpstra tests, and data envelopment analysis," Technovation, Elsevier, vol. 122(C).
    19. Fu, Xiaoqing Maggie & Harrison, Richard T. & Li, Dongfu Franco, 2022. "Venture capital investment in university spin-offs: Evidence from an emerging economy," Journal of Corporate Finance, Elsevier, vol. 74(C).
    20. Kadigia Faccin & Christle Beer & Bibiana Volkmer Martins & Grabriela Zanandrea & Neta Kela & Corne Schutte, 2022. "What really matters for TTOs efficiency? An analysis of TTOs in developed and developing economies," The Journal of Technology Transfer, Springer, vol. 47(4), pages 1135-1161, August.
    21. Berna Beyhan & Derya Fındık, 2022. "Selection of Sustainability Startups for Acceleration: How Prior Access to Financing and Team Features Influence Accelerators’ Selection Decisions," Sustainability, MDPI, vol. 14(4), pages 1-23, February.
    22. Sara Fernández‐López & David Rodeiro‐Pazos & María Jesús Rodríguez‐Gulías & Manuel Anxo Nogueira‐Moreiras, 2022. "Sustainable university entrepreneurship: Revisiting firm growth patterns," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1334-1346, May.
    23. Elisa Salvador & Cristina Marullo & Andrea Piccaluga, 2019. "Determinants of growth in research spin-offs: a resource-based perspective," Post-Print hal-02336465, HAL.
    24. Kalantaridis, Christos & Küttim, Merle, 2023. "Multi-dimensional time and university technology commercialisation as opportunity praxis: A realist synthesis of the accumulated literature," Technovation, Elsevier, vol. 122(C).

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    More about this item

    Keywords

    University spinoff financing; Venture capital; Technology-transfer office; Funding gap; Signaling theory;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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