Abstract
This chapter explores the experiences of entrepreneurs who emerged as spinoffs from the University of Porto, Portugal, at various stages of their startup journey. The study aims to discern pivotal factors influencing startups during different phases of their establishment. Interviews with five startups in the UPTEC incubator will be conducted using a qualitative approach and multiple case study methodology. A comparative analysis of the gathered data will uncover critical factors articulated by founders across distinct creation phases. The findings hold the potential to enhance awareness among incubators and entrepreneurs regarding influential elements that significantly affect their ventures, offering valuable insights for their success.
TopIntroduction
Higher Education Institutions (HEI) appear as strategic players in a knowledge-learning economy (Hottenrott et al., 2016). HEI has competent human capital and high-quality research with economic viability on their main assets (Odei & Novak, 2022). Under this basis, entrepreneurship and spinoffs on HEI became a reliable method of technological transfer (Farrell et al., 2022). In fact, the creation of academic spinoffs demands a systematic approach, as it relates to companies whose products or services are the result of scientific knowledge generated inside the academic environment (Miranda et al., 2018).
Today, HEI behind its teaching activities, positions itself as an entrepreneurial institution, dedicating its efforts to research and transfer to market its knowledge. This knowledge transfer can be assumed in several ways (Grimaldi et al., 2011; Siegel et al., 2015), in which the creation of spinoffs stands out as one of the most common (Berbegal-Mirabent et al., 2013; Helm et al., 2018). HEIs thus assume a role as protagonists in economic, social, and cultural development (de Araujo Ruiz et al., 2020; Trippl et al., 2015), as well as sustainable development (Berchin et al., 2021), shaping the conditions for economic change and the generation of industrial competitiveness (Balven et al., 2018; Siegel & Wright, 2015).
This role evolution of the HEI is reflective of modifications in the driving forces of economic development (Audretsch, 2014; Guerrero & Urbano, 2019), with knowledge commercialisation becoming a strategic activity for HEIs (Leydesdorff, 2020; Unger & Polt, 2017), and an entrepreneurial route for university students involved in research to create spinoffs (Teixeira & Ferreira, 2019). In this sense, the trend worldwide for HEIs to create environments that promote entrepreneurship in students and their lecturers has been increasing (Johnson et al., 2016).
The literature has focused on initiatives in HEIs promoting hubs of entrepreneurial activity through the creation of spinoffs (Gnyawal & Fogel, 1994; Spiegel, 2017), whose motivations are directly related to the innovative capacity of the new ventures, complemented by the socioeconomic impacts in terms of growth and development (Audretsch & Belitski, 2020; Ferreira et al., 2017). However, the phenomenon of the creation and success of spinoffs is difficult to interpret, as it is multifaceted and emerges in a complex environment (Parente & Feola, 2013; Parmentola & Ferretti, 2018; Vesperi et al., 2018), strongly dependent on public policies and support (Fischer et al., 2019).
Key Terms in this Chapter
Academic Spinoff: Business founded by researchers to enhance the results of their own research activity and scientific knowledge, in which University may be a partner. Researchers, as partners, share the profits. From a legal viewpoint, a spinoff is no different from an ordinary business enterprise. The particularity of spinoffs lies in in the fact that they are promoted, created, and developed by one or more people who have a close relationship with the research world and use the know-how developed within research organisations in their business activity.
UPTEC: The Science and Technology Park of University of Porto, Portugal. UPTEC has been the leading structure for knowledge transfer between the University of Porto and the business world, also hosting innovation centres of renowned national and international businesses.
Human Capital: Refers to the economic value of a worker's experience and skills. Human capital includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality. As such, it is an intangible asset or quality that isn't (and can't be) listed on a company's balance sheet. Human capital is perceived to increase productivity and thus profitability. The more investment a company makes in its employees, the chances of its productivity and success become higher.
Spinoff: A new and separate company that's created when a parent company distributes shares in a subsidiary or business division to the parent company shareholders. It is a type of divestiture. A parent company creates a spinoff expecting that it will be worth more as an independent entity than it was as part of the parent company. A spinoff is also known as a spinout or starburst.
Startups: Refers to a company in the first stages of operations. Startups are founded by one or more entrepreneurs who want to develop a product or service for which they believe there is demand. These companies generally start with high costs and limited revenue, which is why they look for capital from a variety of sources such as venture capitalists.
Entrepreneurship: The pursuit of creating, managing, and scaling a business by taking calculated risks, and being innovative. Entrepreneurship involves combining resources, skills, and vision to bring forth new products, services, or solutions that meet market demands and create value.
Innovation: Is a product, service, business model, or strategy that's both novel and useful. Innovations don't have to be major breakthroughs in technology or new business models; they can be as simple as upgrades to a company's customer service or features added to an existing product.
Critical Factors: Critical factors are factors that are crucial in the decision-making process. These factors play a pivotal role in determining the success or failure of a decision. The factors are known to be critical when the proper or wrong implementation of a particular factor will lead to an advantageous or disadvantageous position. The critical factors are also known as the success factors of any organization.
Leadership: Is the ability of an individual or a group of people to influence and guide followers or members of an organization, society, or team. Leadership often is an attribute tied to a person's title, seniority or ranking in a hierarchy. However, it's an attribute anyone can have or attain, even those without leadership positions. It's a developable skill that can be improved over time.