Research-based Spin-offs
Issues in benchmarking OECD
member country performance
Technology and Innovation Policy Committee (8 December 1999)
DSTI
STP
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
Technology and Innovation Policy Committee (8 December 1999)
DSTI
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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
Technology and Innovation Policy Committee (8 December 1999)
DSTI
STP
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?
Technology and Innovation Policy Committee (8 December 1999)
DSTI
STP
Questionnaire Answers
Research-based Spin-off Definitions
Defining characteristic for public sector spin-offs:
Times feature is mentioned:
A
Founder(s) include public sector employees
12
B
Key technology is licensed from public sector institution
6
C
Founder(s) include public sector students or alumni
4
D
Physically located in public-sector incubator or science park
4
E Equity investments were made by public sector
Source: OECD
7
Technology and Innovation Policy Committee (8 December 1999)
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STP
Where to draw the line?
• Too narrow: undercounts frequency with
which countries/institutions generate new
firms.
• Too broad: distinction b/t public sector spinoffs and high tech start-ups becomes fuzzy.
• Definitional consistency needed for OECD
Benchmarking study
Technology and Innovation Policy Committee (8 December 1999)
DSTI
STP
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, R&D funding
Technology and Innovation Policy Committee (8 December 1999)
DSTI
STP
Type of Data
Countries
Total
No data available from
government
Hungary, Japan, Mexico, Poland, Turkey
5
Institution level data
exists
Australia, Austria, Canada, Finland,
Iceland, Italy, Korea, Netherlands, United
Kingdom, the United States
10
Belgium, France, Germany,Norway
4
National or aggregate
data exists
Source: OECD
Technology and Innovation Policy Committee (8 December 1999)
DSTI
STP
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
Technology and Innovation Policy Committee (8 December 1999)
DSTI
STP
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...
Technology and Innovation Policy Committee (8 December 1999)
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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
Technology and Innovation Policy Committee (8 December 1999)
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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
Technology and Innovation Policy Committee (8 December 1999)
DSTI
STP
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?
Technology and Innovation Policy Committee (8 December 1999)
DSTI
STP
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
Technology and Innovation Policy Committee (8 December 1999)
DSTI
STP