Chapter 2 Defining University Spin-Offs

The role of the university in the 21st century is rapidly changing, reflecting a growing interest in the commercialisation of university knowledge among scholars and policymakers. University spin-offs (USOs) represent one mechanism for commercialising knowledge that are attracting considerable attention because of their potential to (a) enhance local economic development, (b) assist universities in their major mission of teaching and research and (c) generate high-performance firms ( Shane, 2004 ). Indeed, one study by Bray and Lee (2000) , based on a small US sample, found that on average, technology transfer offices earned a higher return from equity stakes in their USOs, even allowing for a 50% failure rate, than from the average licensing agreement.