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Competing risk model for predicting stabilization period of university spin-off ventures

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  • Joon Hyung Cho

    (Yonsei University)

  • So Young Sohn

    (Yonsei University)

Abstract

University spin-offs (USOs) are considered as a means of value creation derived from academic research. However, due to financial and managerial constraints, many USOs find it difficult to maintain their business and achieve stabilization. In this study, we investigate the factors affecting the time taken by USOs to reach their break-even point or to secure initial investment from venture capitals, whichever comes earlier. We specifically examine the effect of knowledge diversity, experiential knowledge, intellectual property, and the communication capacity of the USO founders on the time taken to reach stabilization. A competing risk model is applied to the survey data of USO founders in Korea. According to our findings, knowledge diversity, experiential knowledge, and communication capacity are significantly related to the time taken to reach the break-even point. Knowledge diversity, intellectual property, and communication capacity, on the other hand, are associated with the time taken to receive initial investment from venture capitals. Our study can contribute toward deriving strategies for USOs to increase their stabilization speed.

Suggested Citation

  • Joon Hyung Cho & So Young Sohn, 2017. "Competing risk model for predicting stabilization period of university spin-off ventures," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 777-796, September.
    • Handle: RePEc:spr:intemj:v:13:y:2017:i:3:d:10.1007_s11365-016-0422-7
    DOI: 10.1007/s11365-016-0422-7
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    Cited by:

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    2. Kwon, Deuksin & Lee, Ha Young & Cho, Joon Hyung & Sohn, So Young, 2023. "Effect of an open patent pool strategy on technology innovation in terms of creating shared value," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    3. Marco Ferretti & Salvatore Ferri & Raffaele Fiorentino & Adele Parmentola & Alessandro Sapio, 2020. "What drives the growth of academic spin-offs? Matching academics, universities, and non-research organizations," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 137-163, March.
    4. Petra Moog & Christian Soost, 2022. "Does team diversity really matter? The connection between networks, access to financial resources, and performance in the context of university spin-offs," Small Business Economics, Springer, vol. 58(1), pages 323-351, January.
    5. Stefan Marc Hossinger & Xiangyu Chen & Arndt Werner, 2020. "Drivers, barriers and success factors of academic spin-offs: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 97-134, February.

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