This is part of my Series on University Entrepreneurship.
Soon after getting involved with university spin-offs I came across Scott Shane’s book, Academic Entrepreneurship: University Spinoffs and Wealth Creation. Scott is a Professor of Entrepreneurship at Case Western Reserve in Cleveland, OH. You can find his impressive credentials and scholarship here. He is also one of the few scholars that has closely studied the world of university spin-offs.
One of the outputs of his research was a staggering statistic that has been quoted widely. He found that university spin-offs were 108 times as likely to go public as a company with no ties to a university.
The National Council for Entrepreneurial Tech Transfer has put forth a similarly impressive statistic, indicating that 8% of university spin-offs have actually gone public.
I believe that this disparity has a great deal to do with the fact that the crème-de-la-crème of university start-ups are no doubt the end result of years of research, know-how, incubation, testing, federal funding, development and patenting within the university prior to being spun-out. When such a package is licensed to a talented entrepreneurial team, we have a formidable recipe for success.
For Part Seven in this Series, click here