Policies and Structures for Spinning Off New Companies from Research and Development Organizations

3804

Posted: 22 Aug 1998

See all articles by Edward B. Roberts

Edward B. Roberts

Founder/Chair, Martin Trust Center for MIT Entrepreneurship

Denis E. Malone

Government of New Zealand - Department of Labour

Abstract

This paper develops five alternative structural "models" for formal efforts aimed at spinning off new companies from universities, government laboratories, and other research and development organizations. In various ways the models combine the roles of technology originator, the entrepreneur, the R&D organization itself, and the venture investor. The paper also presents the policies and structures of technology commercialization operations from investigations at eight R&D organizations in the United States and the United Kingdom. The data indicate that a R&D organization operating in an environment where venture capital and entrepreneurs are readily available (e.g. MIT and Stanford) can appropriately: (1) exercise a low degree of selectivity in choosing technologies for spin-off creation, and (2) provide a low level of support during the spin-off process. The spin-off process is more difficult in environments where venture capital and entrepreneurs are scarce (e.g., ARCH) and mechanisms for high-selectivity and a high level of support must be in place by the R&D organization to compensate for this scarcity.

JEL Classification: O32

Suggested Citation

Roberts, Edward B. and Malone, Denis E., Policies and Structures for Spinning Off New Companies from Research and Development Organizations. 3804, Available at SSRN: https://ssrn.com/abstract=6920

Edward B. Roberts (Contact Author)

Founder/Chair, Martin Trust Center for MIT Entrepreneurship ( email )

100 Main Street, E62-440
Cambridge, MA 02142
United States
617-253-4934 (Phone)
617-253-2660 (Fax)

Denis E. Malone

Government of New Zealand - Department of Labour

9 Merani Street Devenport, Auckland 1309
New Zealand

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