1. Department of Management, Universitat Autònoma de Barcelona, Edifici B. 08193, Cerdanyola del Vallès, Barcelona, Spain;2. Birmingham Business School, University of Birmingham, Edgbaston, B15 2TT Birmingham, UK
Abstract:
Previous empirical research suggests that university spin-offs under-perform in economic terms compared to other new technology-based firms (NTBFs) in their early years. The usual explanations suggest a lower capabilities endowment of university spin-offs compared to other NTBFs. Using a longitudinal Spanish dataset we compare the evolution of firms′ total factor productivity (capabilities endowment) in both kinds of firm. Productivity grew faster in university spin-offs and their initial underperformance disappeared after 2 or 3 years of operation. The evidence therefore suggests that university spin-offs have lower initial substantive capabilities but greater dynamic capabilities than independent NTBFs. Possible explanations are discussed.