Opportunity Spin-offs andNecessity Spin-offs

Necessity spin-offs are organized by employees of incumbent firms to escape deterioratingjob conditions. This paper proposes a conceptual model of the spin-off process. Necessityspin-offs are distinguished from opportunity spin-offs on the basis of their triggering events.An empirical analysis of German laser spin-offs traces differences in the performance anddeterminants of the two types of spin-offs. Necessity spin-offs are important to limit thedevaluation of individual competences by the market process. They are particularly relevantin growth crises of innovative firms, and in the restructuring of economies with protected orstate-owned companies...