IDEAS home Printed from https://ideas.repec.org/p/hhs/ratioi/0222.html
   My bibliography  Save this paper

Are Public Research Spin-Offs More Innovative?

Author

Abstract

The main purpose of this paper is to analyse whether research spin-offs, that is, spinoffs from either public research institutes or universities, have greater innovation capabilities than comparable knowledge-intensive firms created in other ways. Using a sample of about 2,800 firms from highly innovative sectors, propensity score matching is used to create a sample group of control firms that is comparable to the group of spin-offs. The paper provides evidence that the 121 research spin-offs investigated have more patent applications and more radical product innovations, on average, compared to similar firms. The results also show that research spin-offs’ superior innovation performance can be explained by their high level of research cooperation and by location factors. An urban region location and proximity to the parent institution are found to be conducive to innovation productivity. The paper also finds evidence that research spin-offs are more successful in attracting support from public innovation support programs in comparison to their peers.

Suggested Citation

  • Stephan, Andreas, 2013. "Are Public Research Spin-Offs More Innovative?," Ratio Working Papers 222, The Ratio Institute.
    • Handle: RePEc:hhs:ratioi:0222
    as

    Download full text from publisher

    File URL: http://ratio.se/app/uploads/2014/11/as_ratio222.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bart Clarysse & Mike Wright & Els Van de Velde, 2011. "Entrepreneurial Origin, Technological Knowledge, and the Growth of Spin‐Off Companies," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1420-1442, September.
    2. Uwe Cantner & Sarah Kösters, 2012. "Picking the winner? Empirical evidence on the targeting of R&D subsidies to start-ups," Small Business Economics, Springer, vol. 39(4), pages 921-936, November.
    3. Tseveen Gantumur & Andreas Stephan, 2012. "Mergers & acquisitions and innovation performance in the telecommunications equipment industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 21(2), pages 277-314, April.
    4. Dirk Czarnitzki & Christian Rammer & Andrew Toole, 2014. "University spin-offs and the “performance premium”," Small Business Economics, Springer, vol. 43(2), pages 309-326, August.
    5. Mustar, Philippe & Renault, Marie & Colombo, Massimo G. & Piva, Evila & Fontes, Margarida & Lockett, Andy & Wright, Mike & Clarysse, Bart & Moray, Nathalie, 2006. "Conceptualising the heterogeneity of research-based spin-offs: A multi-dimensional taxonomy," Research Policy, Elsevier, vol. 35(2), pages 289-308, March.
    6. Anna Lejpras & Andreas Stephan, 2011. "Locational conditions, cooperation, and innovativeness: evidence from research and company spin-offs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 543-575, June.
    7. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    8. Shaker A. Zahra & Els Van de Velde & Bárbara Larrañeta, 2007. "Knowledge conversion capability and the performance of corporate and university spin-offs," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(4), pages 569-608, August.
    9. Dirk Czarnitzki & Bernd Ebersberger & Andreas Fier, 2007. "The relationship between R&D collaboration, subsidies and R&D performance: Empirical evidence from Finland and Germany," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1347-1366.
    10. Thomas Åstebro & Pontus Braunerhjelm & Anders Broström, 2013. "Does academic entrepreneurship pay?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(1), pages 281-311, February.
    11. Beise, Marian & Stahl, Harald, 1999. "Public research and industrial innovations in Germany," Research Policy, Elsevier, vol. 28(4), pages 397-422, April.
    12. Dirk Czarnitzki & Hanna Hottenrott, 2009. "Are Local Milieus The Key To Innovation Performance?," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 81-112, February.
    13. Audretsch, D.B. & Fritsch, M., 1993. "A Note on the Measurement of Entry Rates," Papers 93-5, Bergakademie Freiberg Technical University - Faculty of Economics and Business Administration.
    14. 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.
    15. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    16. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    17. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    18. Audretsch, David B. & Lehmann, Erik E. & Warning, Susanne, 2005. "University spillovers and new firm location," Research Policy, Elsevier, vol. 34(7), pages 1113-1122, September.
    19. Audretsch, David B. & Feldman, Maryann P., 2004. "Knowledge spillovers and the geography of innovation," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 61, pages 2713-2739, Elsevier.
    20. Baba, Yasunori & Shichijo, Naohiro & Sedita, Silvia Rita, 2009. "How do collaborations with universities affect firms' innovative performance? The role of "Pasteur scientists" in the advanced materials field," Research Policy, Elsevier, vol. 38(5), pages 756-764, June.
    21. Wennberg, Karl & Wiklund, Johan & Wright, Mike, 2011. "The effectiveness of university knowledge spillovers: Performance differences between university spinoffs and corporate spinoffs," Research Policy, Elsevier, vol. 40(8), pages 1128-1143, October.
    22. Christian Longhi, 1999. "Networks, Collective Learning and Technology Development in Innovative High Technology Regions: The Case of Sophia-Antipolis," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 333-342.
    23. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053.
    24. Martin Andersson & Steven Klepper, 2013. "Characteristics and performance of new firms and spinoffs in Sweden," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(1), pages 245-280, February.
    25. Tenenhaus, Michel & Vinzi, Vincenzo Esposito & Chatelin, Yves-Marie & Lauro, Carlo, 2005. "PLS path modeling," Computational Statistics & Data Analysis, Elsevier, vol. 48(1), pages 159-205, January.
    26. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    27. Steven Klepper & Sally Sleeper, 2005. "Entry by Spinoffs," Management Science, INFORMS, vol. 51(8), pages 1291-1306, August.
    28. David B. Audretsch & Dirk Dohse, 2007. "Location: A Neglected Determinant of Firm Growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(1), pages 79-107, April.
    29. Walter, Achim & Auer, Michael & Ritter, Thomas, 2006. "The impact of network capabilities and entrepreneurial orientation on university spin-off performance," Journal of Business Venturing, Elsevier, vol. 21(4), pages 541-567, July.
    30. Heike Belitz & Frank Fleischer & Andreas Stephan, 2001. "Staatliche Förderung von Forschung und Entwicklung in der ostdeutschen Wirtschaft: eine Bilanz," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 68(35), pages 537-544.
    31. Egeln, Jürgen & Gottschalk, Sandra & Rammer, Christian & Spielkamp, Alfred, 2002. "Public research spin-offs in Germany: Summary report," ZEW Dokumentationen 03-04, ZEW - Leibniz Centre for European Economic Research.
    32. Guido Buenstorf & Matthias Geissler, 2013. "Not Invented Here: Technology Licensing, Knowledge Transfer and Innovation Based on Public Research," Economic Complexity and Evolution, in: Guido Buenstorf & Uwe Cantner & Horst Hanusch & Michael Hutter & Hans-Walter Lorenz & Fritz Rahmeyer (ed.), The Two Sides of Innovation, edition 127, pages 77-107, Springer.
    33. Massimo Colombo & Diego D’Adda & Evila Piva, 2010. "The contribution of university research to the growth of academic start-ups: an empirical analysis," The Journal of Technology Transfer, Springer, vol. 35(1), pages 113-140, February.
    34. Alexander Eickelpasch & Ingo Pfeiffer, 2006. "Unternehmen in Ostdeutschland: wirtschaftlicher Erfolg mit Innovationen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 73(14), pages 173-180.
    35. Wright, Mike & Lockett, Andy & Clarysse, Bart & Binks, Martin, 2006. "University spin-out companies and venture capital," Research Policy, Elsevier, vol. 35(4), pages 481-501, May.
    36. Sven H. De Cleyn & Johan Braet, 2009. "The influence of government subsidies and risk capital on survival of university spin-offs: findings from 16 early stage case studies," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 5(4), pages 376-394.
    37. Krabel, Stefan & Mueller, Pamela, 2009. "What drives scientists to start their own company?: An empirical investigation of Max Planck Society scientists," Research Policy, Elsevier, vol. 38(6), pages 947-956, July.
    38. J. Egeln & H. Fryges & S. Gottschalk & Ch. Rammer, 2009. "Performance von akademischen Spinoff-Gründungen in Österreich," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 3(4), pages 265-283, December.
    39. N. Moray & B. Clarysse, 2005. "Institutional Origin and Resource Endowments to Science-Based Entrepreneurial Firms: A European Exploration," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/296, Ghent University, Faculty of Economics and Business Administration.
    40. Moray, Nathalie & Clarysse, Bart, 2005. "Institutional change and resource endowments to science-based entrepreneurial firms," Research Policy, Elsevier, vol. 34(7), pages 1010-1027, September.
    41. Jurgen Egeln & Sandra Gottschalk & Christian Rammer, 2004. "Location Decisions of Spin-offs from Public Research Institutions," Industry and Innovation, Taylor & Francis Journals, vol. 11(3), pages 207-223.
    42. Marie Thursby & Richard Jensen, 2001. "Proofs and Prototypes for Sale: The Licensing of University Inventions," American Economic Review, American Economic Association, vol. 91(1), pages 240-259, March.
    43. Lockett, Andy & Siegel, Donald & Wright, Mike & Ensley, Michael D., 2005. "The creation of spin-off firms at public research institutions: Managerial and policy implications," Research Policy, Elsevier, vol. 34(7), pages 981-993, September.
    44. Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
    45. J. V. Henderson & J. F. Thisse (ed.), 2004. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 4, number 4.
    46. Audretsch, David B & Stephan, Paula E, 1996. "Company-Scientist Locational Links: The Case of Biotechnology," American Economic Review, American Economic Association, vol. 86(3), pages 641-652, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Viktor Slavtchev & Devrim Göktepe-Hultén, 2016. "Support for public research spin-offs by the parent organizations and the speed of commercialization," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1507-1525, December.
    2. Eickelpasch Alexander & Hirte Georg & Stephan Andreas, 2016. "Firms’ Evaluation of Location Quality: Evidence from East Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 241-273, March.
    3. Febi Jensen & Hans Lööf & Andreas Stephan, 2020. "New ventures in Cleantech: Opportunities, capabilities and innovation outcomes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 902-917, March.
    4. K. Poehlmann & R. Helm & O. Mauroner & J. Auburger, 2021. "Corporate spin-offs’ success factors: management lessons from a comparative empirical analysis with research-based spin-offs," Review of Managerial Science, Springer, vol. 15(6), pages 1767-1796, August.
    5. Daniel Fackler & Claus Schnabel & Alexandra Schmucker, 2016. "Spinoffs in Germany: characteristics, survival, and the role of their parents," Small Business Economics, Springer, vol. 46(1), pages 93-114, January.
    6. Stefania Migliori & Daniel Pittino & Augusta Consorti & Lorenzo Lucianetti, 2019. "The relationship between Entrepreneurial Orientation, Market Orientation and Performance in University Spin-Offs," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 793-814, September.
    7. Andrea Setti, 2020. "Linking science-based firms with performance factors: An integrative systematic review of literature," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(2), pages 09-42, March.
    8. María Jesús Rodríguez-Gulías & David Rodeiro-Pazos & Sara Fernández-López, 2016. "The Regional Effect on the Innovative Performance of University Spin-Offs: a Multilevel Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(4), pages 869-889, December.
    9. Helmut Fryges & Mike Wright, 2014. "The origin of spin-offs: a typology of corporate and academic spin-offs," Small Business Economics, Springer, vol. 43(2), pages 245-259, August.
    10. Bollmann, Tobias, 2018. "Unternehmensgründungen und Hochschulen: Eine Analyse der Bedeutung von universitärer Entrepreneurship-Bildung und Clustermitgliedschaften auf regionale Unternehmensgründungen," Arbeitspapiere 180, University of Münster, Institute for Cooperatives.
    11. Nora Hesse & Rolf Sternberg, 2017. "Alternative growth patterns of university spin-offs: why so many remain small?," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 953-984, September.
    12. Cyrine Ben-Hafaïedh & Alessandra Micozzi & Pierpaolo Pattitoni, 2018. "Academic spin-offs’ entrepreneurial teams and performance: a subgroups approach," The Journal of Technology Transfer, Springer, vol. 43(3), pages 714-733, June.
    13. Christian Sandström & Karl Wennberg & Martin W. Wallin & Yulia Zherlygina, 2018. "Public policy for academic entrepreneurship initiatives: a review and critical discussion," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1232-1256, October.
    14. 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).
    15. 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.
    16. 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.
    17. Guckenbiehl, Peter & Corral de Zubielqui, Graciela & Lindsay, Noel, 2021. "Knowledge and innovation in start-up ventures: A systematic literature review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    18. Elisa Salvador & Cristina Marullo & Andrea Piccaluga, 2019. "Determinants of growth in research spin-offs: a resource-based perspective," Post-Print hal-02336465, HAL.
    19. Stefan Marc Hossinger & Xiangyu Chen & Arndt Werner, 2020. "Drivers, barriers and success factors of academic spin-offs: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 97-134, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephan, Andreas, 2012. "Are Research Spin-Offs More Innovative? Evidence from a Matching Analysis," Working Paper Series in Economics and Institutions of Innovation 287, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    2. Christian Sandström & Karl Wennberg & Martin W. Wallin & Yulia Zherlygina, 2018. "Public policy for academic entrepreneurship initiatives: a review and critical discussion," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1232-1256, October.
    3. 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.
    4. Anna Lejpras & Andreas Stephan, 2011. "Locational conditions, cooperation, and innovativeness: evidence from research and company spin-offs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 543-575, June.
    5. Marco Ferretti & Salvatore Ferri & Raffaele Fiorentino & Adele Parmentola & Alessandro Sapio, 2020. "What drives the growth of academic spin-offs? Matching academics, universities, and non-research organizations," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 137-163, March.
    6. Agarwal, Rajshree & Shah, Sonali K., 2014. "Knowledge sources of entrepreneurship: Firm formation by academic, user and employee innovators," Research Policy, Elsevier, vol. 43(7), pages 1109-1133.
    7. Carolin Bock & Christian Landau & Moritz Orendt & Maximilian Schmidt, 2018. "Are Public Financing Schemes Beneficial For University Spin-Offs And The Technology Transfer Of Innovations?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(06), pages 1-30, August.
    8. Marco Ferretti & Salvatore Ferri & Raffaele Fiorentino & Adele Parmentola & Alessandro Sapio, 2019. "Neither absent nor too present: the effects of the engagement of parent universities on the performance of academic spin-offs," Small Business Economics, Springer, vol. 52(1), pages 153-173, January.
    9. Kolympiris, Christos & Kalaitzandonakes, Nicholas & Miller, Douglas, 2015. "Location choice of academic entrepreneurs: Evidence from the US biotechnology industry," Journal of Business Venturing, Elsevier, vol. 30(2), pages 227-254.
    10. Dorner, Matthias & Fryges, Helmut & Schopen, Kathrin, 2017. "Wages in high-tech start-ups – Do academic spin-offs pay a wage premium?," Research Policy, Elsevier, vol. 46(1), pages 1-18.
    11. John Hagedoorn & Boris Lokshin & Stéphane Malo, 2018. "Alliances and the innovation performance of corporate and public research spin-off firms," Small Business Economics, Springer, vol. 50(4), pages 763-781, April.
    12. Viktor Slavtchev & Devrim Göktepe-Hultén, 2016. "Support for public research spin-offs by the parent organizations and the speed of commercialization," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1507-1525, December.
    13. Dirk Crass & Christian Rammer & Birgit Aschhoff, 2019. "Geographical clustering and the effectiveness of public innovation programs," The Journal of Technology Transfer, Springer, vol. 44(6), pages 1784-1815, December.
    14. Einar Rasmussen & Mike Wright, 2015. "How can universities facilitate academic spin-offs? An entrepreneurial competency perspective," The Journal of Technology Transfer, Springer, vol. 40(5), pages 782-799, October.
    15. Alice Civera & Michele Meoli, 2018. "Does university prestige foster the initial growth of academic spin-offs?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(2), pages 111-142, June.
    16. 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.
    17. Anna Lejpras, 2015. "Knowledge, location, and internationalization: empirical evidence for manufacturing SMEs," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(8), pages 734-754, November.
    18. F. I. Vega-Gómez & F. J. Miranda González & J. Pérez-Mayo, 2020. "Analyzing the Effects of Institutional- and Ecosystem-Level Variables on University Spin-Off Performance," SAGE Open, , vol. 10(2), pages 21582440209, June.
    19. K. Poehlmann & R. Helm & O. Mauroner & J. Auburger, 2021. "Corporate spin-offs’ success factors: management lessons from a comparative empirical analysis with research-based spin-offs," Review of Managerial Science, Springer, vol. 15(6), pages 1767-1796, August.
    20. Oscarina Conceição & Ana Paula Faria, 2014. "Determinants of research-based spin-offs survival," NIPE Working Papers 21/2014, NIPE - Universidade do Minho.

    More about this item

    Keywords

    Spin-Offs; Innovation Performance; Propensity Score Matching; Location Factors; Cooperation; Public R&D Subsidies;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:ratioi:0222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martin Korpi (email available below). General contact details of provider: https://edirc.repec.org/data/ratiose.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.