Strategy For Developing Entrepreneurial University Through University Spin-Offs

International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume VI, Issue IX, September 2021|ISSN 2454-6194

Strategy For Developing Entrepreneurial University Through University Spin-Offs

Assoc. Prof. Dr. Le Nguyen Doan Khoi
Department of Scientific Research Affairs, Can Tho University

Abstract: This paper indicated the perception of university-based companies. Spin-off is perceived by the market of investors as a signal of firm quality, with university-based firms registering higher valuations and lower uncertainty levels compared to a matched sample of independent firms. However, despite the benefits yielded by links with universities in terms of a greater propensity to innovation, in the long term university spin-offs do not out-perform their counterparts. It analyses risk manifestations and management difficulties. Besides, the failure of entrepreneurs, seeing the organisation developing without them, pushes us to a subsequent and specific implication on exit strategies identified in this context.

Key words: strategy, spin-off, University entrepreneurship

I. INTRODUCTION

University spin-offs are companies that transform technological inventions developed from university research that are likely to remain unexploited otherwise.
University researchers adopt three main mechanisms to transfer knowledge: conferences and scientific publications, training of skilled labour force, and commercialization of knowledge (Landry et al., 2006). Of these, the commercialization of university activities has become a key component in government agendas (Wright et al., 2006). There are fundamentally two main reasons why policymakers emphasize the concept of the entrepreneurial university. Firstly, the creation of more direct links between science and utilization may foster the process of technology transfer and contribute to global economic development. Secondly, in a context of restricted institutional funds, business activities may represent an important alternative source of financing for universities. Based on these assumptions, national governments have adopted a series of policy measures to increase recognition of intellectual property rights and create a supportive environment for the development of university-based firms. Universities have developed business incubators and formal programs for technology transfer. Consequently, universities are able to leverage the technology-transfer process directly while a variety of benefits are simultaneously provided to university-based firms (Ensley and Hmieleski, 2005). For instance, thanks to its affiliation with a university, a firm can access cutting-edge scientific knowledge more easily and more quickly (Smilor and Gill, 1986) and reduce the cost of acquiring resources it needs to build and maintain its competitive advantage (Mian, 1996). In addition, links with universities can have reputation effects that, in turn, can

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