University spin-off

University spin-offs transform technological inventions developed from university research that are likely to remain unexploited otherwise. As such, university/academic spin-offs are a subcategory of research spin-offs. Prominent examples of university spin-offs are Genentech, Crucell, Lycos and Plastic Logic. In most countries, universities can claim the intellectual property (IP) rights on technologies developed in their laboratories. This IP typically draws on patents or, in exceptional cases, copyrights. Therefore, the process of establishing the spin-off as a new corporation involves transferring the IP to the new corporation or giving the latter a license on this IP.

University spin-offs typically go through a number of critical steps to develop the initial invention into a successful business venture. The following steps are critical in creating a successful spin-off (not necessarily in this order).

Some universities generate substantially higher numbers of spin-offs than others. Universities with high numbers of successful spin-offs …

University spin-off activity may give rise to potential conflict of interest between commercial and academic work. In addition, the university’s reputation may be at risk if founders of spin-offs act inappropriately. Moreover, the antagonism between academic research and technology commercialization by way of spin-offs is likely to create fairness issues, for example regarding the distribution of royalties or equity. This antagonism can be managed by installing transparent procedures for the spin-off formation process that enhance fair of all participants.

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