Talk:TT Glossary

== Definition for a university spin-off (Note: this thread was copied from ASTP mailing list in order to illustrate possible use of the discussion pages from ASTPWiki! Mieville 17:10, 1 May 2006 (UTC)) ==

Dear Colleagues,

We would be interested in learning of your definitions for a university spin-off/start-up. While superficially obvious, the more detailed content of what is a university start-up seems to be far from clear at least based on quick literature review. Thus, we’re turning to you professionals in the field.

Any definition that you use within a university or in nationally or EU wide in your country would be of interest. Specifically, we’re looking for ways to define a research based start-up in such a way that the number of university start-ups would be as easy as possible to follow and monitor both at local and at national level. Also, pointers to any references would be much appreciated.

We’ll summarize and post the responses as well as send then to individual contributors by email. At present, we don’t make a distinction between a university spin-off and start-up; should we?

Thanks for help!

Regards,

RM (Copied from ASTP mailing list by Mieville 16:44, 1 May 2006 (UTC))


 * My understanding is that:
 * A spin-off is a business start-up in which the parent organisation is holding equity. So if the university that has transferred its technology to the business start-up holds equity in it then the term spin off is used. But if the university does not hold equity (but instead only collects royalties as a result of a licensing deal that does not include equity) then the term start-up is used.
 * Regards
 * Panos 84.227.29.241 17:02, 1 May 2006 (UTC)


 * We tend to use in Switzerland a definition close to those mentionned by the association of university technology managers (www.autm.net) in their annual survey and which is:


 * (University) start-ups are companies that were dependent upon licensing the institution's technology for initiation.


 * Regards,


 * Laurent Mieville 17:13, 1 May 2006 (UTC)


 * Dear Riku,


 * The terms are often used interchangeably and some believe that it's just a matter of semantics. I don't think there are any hard-and-fast, commonly accepted definitions.


 * But the terms have a very different 'ring' to them. A start-up is simply a business that has started up (but may have done little) whereas a spin-out company sounds as if it's got somewhere.


 * One common definition of a spin-out is a company for which both of the following holds:
 * 1. The company exploits the university's IP (which is usually embodied in an IP agreement between the university and the company);
 * 2. The university has an equity shareholding.


 * However, even this fails to satisfy since it is easy to start a company and to assign IP. I would also include:
 * 3. The company has raised external equity or debt finance (or is profitable).
 * 4. The company is financially and managerially independent (has an arm lengths relationship with) the university.


 * Companies that satisfy all these conditions have clearly passed the first few hurdles - hurdles that are difficult to manufacture. They are therefore worth counting as a real measure of success (as opposed to start-up which, in the UK anyway) are too easy to create.


 * Is it worth creating a distinction? Maybe it is - we have to be able to differentiate between those companies that are flying and those that are on the runway. However, it's still only a binary measure. I prefer numbers that scale, such as 'induced investment' (cash raised from external sources) and employment (a surrogate for size). Both are hard to fiddle.


 * See you in Budapest?


 * Jeff 84.227.29.241 17:02, 1 May 2006 (UTC)


 * Jeff,
 * Interesting exposé. Both terms are indeed often used quite confusingly.
 * I have always understood the terms not to be different so much in terms of development phase (on runway or flying) but in terms of "genus vs species". "Start-up" being the generic term for any new company (developing & selling high tech products or services), and "spin-off" being the specific term for a start-up company that has certain ties with its parent organisation (although indeed at arms length). The parent organisation (in the case of what I tend to call "science-offs": the university/PRO - or some of its employees) being (one of) the founding fathers, providing (i.e. licensing or assigning) the pivotal intellectual assets/technology for that company and/or having some equity therein.
 * We could indeed expand over a beer in Budapest.
 * Paul 84.227.29.241 17:02, 1 May 2006 (UTC)


 * All,
 * Further to the definition discussion of which we lawyers typically like...
 * But, Paul's definitions are the ones we use in Finland in general relating to a 'normal' companies, so I would say that those definitions apply to the university related spin-offs and start-ups accordingly.


 * Regards,
 * Jukka 84.227.29.241 17:02, 1 May 2006 (UTC)


 * The distinction in the US is between technology transfer and true commercialization. Institutions can do neither a start up defined as a new company with seed or venture capital or a spin out/off as defined as a company spun out of another company with its own assets and partial ownership available to third parties.


 * Peter 84.227.29.241 17:02, 1 May 2006 (UTC)


 * Paul/Jeff,


 * In Scotland we would use exactly the same definition as Paul. We regularly count our start-ups and spin-outs and compare them to the rest of the UK, other parts of Europe and the USA.


 * Looks like it will be useful to include our definition in my presentation.


 * Best wishes,


 * Eleanor 84.227.29.241 17:02, 1 May 2006 (UTC)


 * Dear all,


 * As a member of Proton WG08 on spin off activities from PRO's, I give you the definition of a spin off that has been approved by the Group. this definition is in line with the comment of Eleanor T.


 * Spin-off Company


 * A new company whose formation was dependent on the use of intellectual property (including patents, copyright, design rights, “know how”, utility model or similar) that was created and/or developed at a Public Research Organisation.


 * Regards,


 * Michel 84.227.29.241 17:02, 1 May 2006 (UTC)


 * Dear Michel,


 * After you intervention I feel obliged to report the OECD definition of the two companies, which I feel more confortable with.


 * Spin-offs are firms established by staff from a PRO to develop or commercialise an invention.
 * Start-ups are new firms established specifically to develop or commercialise an invention licensed from a public research organisation, but without staff participation from that PRO.


 * Regards to all,
 * Giovanni17:02, 1 May 2006 (UTC)