Policy Orientation Effects on Performance with Licensing to Start-Ups and Small Companies

A model of university technology transfer(licensing)policy orientation and selectivityis developed. Datawere collected on134 U.S. research-extensive and research-intensiveuniversities andthe annual licensing surveys of the Association ofUniversity Technology Managers, initial public offering (IPO) prospectusfilings with the Securities and Exchange Commission, and sources concentratingon external support for entrepreneurial ventures. Two measures of technology transfer performance were used: licenses withcompanies that subsequently went public and product royalties. Results confirmthe utility of operationalizing support and selectivity as two distinct policyorientations toward the technology transfer process. The measure ofentrepreneurial density is shown to be valid, reliable, and useful forassessing the conduct of university technology transfer within a state.Selectivity and entrepreneurial density are found to be positively correlatedwith IPO performance. In regards to how selectivity, support, and the external entrepreneurialenvironment influence performance, findings support a contingency perspectiveon technology transfer practice. A negative and significant effect of supporton the selectivity-royalty relationshipis observed. Results show thatsupport increases, the benefits of high selectivity diminish, and vice versa.Finally, a direct positive effect of selectivity and support on royaltyrevenues and a negative selectivity-IPO performance contingency involvingentrepreneurial density are observed for public universities. (NEE)