Entrepreneurship and University-Based Technology Transfer

A framework is developed using grounded theory to aid in understanding the relationships between the organization of university technology transfer offices (UTTOs), licensing strategies, and the process of technology transfer-inspired new startups.The study investigate which university technology transfer offices' (UTTOs) structures and licensing strategies are most supportive of new venture formation, and correlations between structures and licensing strategies. Interviews with 128 UTTO directors and content analysis of university policies revealed that UTTOs are organized into three archetypes: (1) traditional university structure; (2) nonprofit 501(C)l research foundations; and (3) for-profit private venture extension.Although for-profit UTTO structures are positively related to new venture formation, traditional university and nonprofit UTTO structures are more likely to correlate with the presence of university-based business incubators. The model developed indicates that for-profit UTTO structures and licensing in exchange for equity are most positively related to new venture formation, but licensing for cash is the most common strategy used to transfer technologies.Although licensing for equity is more likely to drive new venture emergence, the UTTO motivation to maximize cash flows and minimize financial and legal risks often leads to a strategic choice that does not support new venture creation. (JSD)