Assessment of proposals for new technology ventures in the UK: characteristics of university spin-off companies

University "spin-off" companies are high technology ventures that originate from research work in a university, resulting in the generation of intellectual property and, usually, the subsequent involvement of key researchers. The analysis distinguishes between 14 new technology-based firms that are university "spin-off" companies and 14 community companies that had no connection with a university. The analysis described in this paper is based on a specially developed assessment methodology that comprises a structured decision-making model. This technology assessment methodology is based on the identification of key criteria for analysis. The study identified the most significant variable for university "spin-off' companies being that of protecting competitive advantage. This result can be attributed to the need for universities to protect their intellectual property, which is to be rewarded with an equity stake in the company. Two other significant variables were identified as the level of product innovation (compared to competitors) and market criteria (including the potential customer base). (c) 2003 Elsevier Ltd. All rights reserved.