Abstract
Using a proprietary dataset of 98 German research-based spin-offs (RBSOs) founded between 1997 and 2012, we assess which firm-specific and system-inherent factors are decisive for the spin-offs’ growth drawing on the resource-based view. Specifically, we aim to evaluate whether venture capital-backed RBSOs outperform non venture capital-backed RBSOs and whether a performance difference is explained by venture capitalists’ scouting or coaching capabilities. Our empirical findings detect that a homogeneous educational background of the academic entrepreneurs is positively associated with RBSO growth. A training provided by the parent research organization intended to develop entrepreneurial skills and to establish a network to outside professionals as well as the commercialization of a novel technology have a positive impact on firm growth. Concerning the involvement of venture capitalists, venture capital-backed RBSOs show a superior employment and revenue growth compared to non-venture capital-backed RBSOs. Our results support the view that this superior performance is attributed to venture capitalists’ coaching rather than their scouting capabilities.
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Notes
The largest public research institutes in Germany include the Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V.; the Max-Planck-Gesellschaft zur Förderung der Wissenschaften e. V.; the Helmholtz-Gemeinschaft Deutscher Forschungszentren e. V.; and the Wissenschaftsgemeinschaft Gottfried Wilhelm Leibniz e. V.
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Acknowledgements
The authors want to thank Thomas Doppelberger and the whole Fraunhofer Venture unit for their support and cooperation which helped to make this study possible. Further, they thank an anonymous referee and the editor Barry Bozeman for insightful comments which helped to improve the paper.
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Bock, C., Huber, A. & Jarchow, S. Growth factors of research-based spin-offs and the role of venture capital investing. J Technol Transf 43, 1375–1409 (2018). https://doi.org/10.1007/s10961-017-9635-3
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DOI: https://doi.org/10.1007/s10961-017-9635-3
Keywords
- Research-based spin-off
- Academic entrepreneurship
- Start-ups
- Venture capital
- Resource-based view
- Selection effect
- Treatment effect