D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Research-based Spin-offs Issues in benchmarking OECD member country performance

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Workshop Objectives Review of definitions and data available Elaboration of spin-off models/typology Review of strategies and policies for the promotion of spin-offs Evaluation of spin-offs as indicator of health of public-private interface in NIS

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) TIP Benchmarking Project Spin-offs are one measurable mx of tech transfer b/t public and private sectors We want to compare performance, but there are methodology challenges: –definitions –data comparability –weighting spin-offs in benchmarking exercise Country input important to future work

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) What counts as a public research-based spin-off? No standard definition Narrow: any new firm which includes a public sector or univ employee as a founder Broader: employee founders + licensees + firms in which the institution holds equity Broadest: employees + licensees + equity + students/alumni + incubator firms + other?

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Questionnaire Answers

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Where to draw the line? Too narrow: undercounts frequency with which countries/institutions generate new firms. Too broad: distinction b/t public sector spin- offs and high tech start-ups becomes fuzzy. Definitional consistency needed for OECD Benchmarking study

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Spin-off formation rates Not regularly monitored by most countries A handful of countries have national data –Belgium, France, Germany, Norway –obtainable for Canada, UK, US Institutional or regional v. national data Yearly formation rates v. cumulative totals Normalization of rates by researcher, institution, R&D funding

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Type of Data

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Future work (1) Correspondence with governments to clarify definition and data sent to OECD Focus on countries w/ national level data More limited comparisons of countries with institutional or regional data, e.g. growth rates Cooperation with other projects

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Spin-off typologies What exactly is exchanged between the public sector and a private spin-off? Personnel, capital, licenses, physical space, equipment, contacts, know-how and services. Investments made and returns expected Options available to public sector institutions: spin-offs by design! Advantages and disadvantages...

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Policies and Strategies Funding Incentives –IP rights allocation, licensing fees and royalties –rewards for entrepreneurship –personal, professional, financial risk reduction Culture of entrepreneurship Longer term support structures –finding partners, management & marketing services

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Data on Lifecycles Sparse information on how spin-offs grow and their long term prospects –Financial needs –Size and structure –Growth and survival rates –Exit strategies Impressionistic -- spin-offs are small, grow relatively slowly, but survive longer than general population of SMEs

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Future Work (2) Role of the public sector in financing early stage public sector spin-offs Data on the initial capital needs and burn rates of spin-offs What are the funding sources? What further info on spin-off life-cycles is of interest to member countries?

D S T I S T P Technology and Innovation Policy Committee (8 December 1999) Spin-offs and Benchmarking What is so special about spin-offs? –High skilled jobs, new firms, new industries, effect on public research priorities, role as intermediary. Are spin-offs a necessity for a healthy NIS? What should countries strive for: –existence of some spin-offs, steady growth rates, balance with other tech transfer mechanisms