Research-based Spin-offs

1
Research-based Spin-offs

• Issues in benchmarking OECD member country
  performance

2
Workshop Objectives

• Review of definitions and data available
• Elaboration of spin-off models/typology
• Review of strategies and policies for the
  promotion of spin-offs
• Evaluation of spin-offs as indicator of health of
  public-private interface in NIS

3
TIP Benchmarking Project

• Spin-offs are one measurable mx of tech transfer
  b/t public and private sectors
• We want to compare performance, but there are
  methodology challenges
• definitions
• data comparability
• weighting spin-offs in benchmarking exercise
• Country input important to future work

4
What counts as a public research-based spin-off?

• No standard definition
• Narrow any new firm which includes a public
  sector or univ employee as a founder
• Broader employee founders licensees firms
  in which the institution holds equity
• Broadest employees licensees equity
  students/alumni incubator firms other?

5
Questionnaire Answers
6
Where to draw the line?

• Too narrow undercounts frequency with which
  countries/institutions generate new firms.
• Too broad distinction b/t public sector
  spin-offs and high tech start-ups becomes fuzzy.
  
• Definitional consistency needed for OECD
  Benchmarking study

7
Spin-off formation rates

• Not regularly monitored by most countries
• A handful of countries have national data
• Belgium, France, Germany, Norway
• obtainable for Canada, UK, US
• Institutional or regional v. national data
• Yearly formation rates v. cumulative totals
• Normalization of rates by researcher,
  institution, RD funding

8
Type of Data
9
Future work (1)

• Correspondence with governments to clarify
  definition and data sent to OECD
• Focus on countries w/ national level data
• More limited comparisons of countries with
  institutional or regional data, e.g. growth rates
• Cooperation with other projects

10
Spin-off typologies

• What exactly is exchanged between the public
  sector and a private spin-off?
• Personnel, capital, licenses, physical space,
  equipment, contacts, know-how and services.
• Investments made and returns expected
• Options available to public sector institutions
  spin-offs by design!
• Advantages and disadvantages...

11
Policies and Strategies

• Funding
• Incentives
• IP rights allocation, licensing fees and
  royalties
• rewards for entrepreneurship
• personal, professional, financial risk reduction
• Culture of entrepreneurship
• Longer term support structures
• finding partners, management marketing services

12
Data on Lifecycles

• Sparse information on how spin-offs grow and
  their long term prospects
• Financial needs
• Size and structure
• Growth and survival rates
• Exit strategies
• Impressionistic -- spin-offs are small, grow
  relatively slowly, but survive longer than
  general population of SMEs

13
Future Work (2)

• Role of the public sector in financing early
  stage public sector spin-offs
• Data on the initial capital needs and burn rates
  of spin-offs
• What are the funding sources?
• What further info on spin-off life-cycles is of
  interest to member countries?

14
Spin-offs and Benchmarking

• What is so special about spin-offs?
• High skilled jobs, new firms, new industries,
  effect on public research priorities, role as
  intermediary.
• Are spin-offs a necessity for a healthy NIS?
• What should countries strive for
• existence of some spin-offs, steady growth rates,
  balance with other tech transfer mechanisms