TTOs increase innovation and dissemination of tech

[Alice, “Engagement of academics in university technology transfer: Opportunity and necessity academic entrepreneurship”, European Economic Review, Vol. 123, Elsevier, Accessed 7/17, GDI-IM] 

University spinoffs are a well-accepted vehicle for the dissemination and commercialization of new knowledge and a wide range of policies have been recommended and implemented to encourage their formation in hopes of spurring inno- vation and local economic development (Shane, 2004). Indeed, according to the knowledge spillover theory of entrepreneur- ship, they result fundamental for the development of the regions where they are located (Acs et al., 2013).

To be effective policy needs to be targeted based on the rationales behind the academic spinoffs establishment. Policy goals usually do not correspond with the motives of enterprising individuals. Hardly anybody starts a business in order to achieve innovation, job creation, or economic growth at the national level. Instead, people desire personal profits, or autonomy, amongst others, or are just forced into entrepreneurship because they have no other options (Shane et al., 2003).

Still, the type of individual entrepreneurial motivation may determine the goals and aspirations of the firm, which in turn may determine macroeconomic outcomes. In either case, it is vital for policy-makers to know what factors within their sphere of influence correlate with individual entrepreneurial motivation (Hessels et al., 2008).

TTOs have always been one of the preferred channels policymakers have encouraged as testified by the US Bayh–Dole Act of 1980 and its European counterparts. Yet, its function varies according to the rationale for spinning out new companies. Specifically, the role of the TTO in increasing the entrepreneurial activities of academics appears to be related to the simpli- fication of the process of innovation commercialization and diffusion, while TTOs support in terms of coaching, and training activity result essential for those academics who start a new business as a second-best solution. These considerations help to shed light on the mixed literature concerning the effectiveness of TTOs, by arguing that it depends on the orientation of academic spinoffs – either opportunity or necessity oriented.

Accordingly, some implications can be derived. In particular, whether TTOs adopt best practices or not in enhancing the commercialization of research results is related to the nature of the academic spinoffs. In case of opportunity en- trepreneurial activities, the university’s potential for commercializing its research results depend on its ability to attract and retain academics able to recognize the market opportunity. Vice versa, the strategy of universities to created TTOs of considerable size and scope, may translate in a fundamental mechanism for necessity-oriented academic spinoffs in order to survive.