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Commercial exploitation of new technologies arising from university research: start-ups and markets for technology

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The creation of start-up firms is an important method of commercializing new technologies arising from R&D at universities and other research institutions. Most research into start-ups presumes that these firms develop products or services. However, start-ups may operate through markets for technology by selling or licensing rights to use their technology to other firms – typically established firms – who develop and sell new products or services based on the technology. In this study of 57 public start-up firms created to commercialize the results of university research, we find evidence that (1) operating through markets for technology is a common approach to commercialization, (2) start-ups that operate in markets for technology can be effectively distinguished in practice from start-ups operating through product markets, and (3) there are substantive differences in the business activities of firms depending on whether they operate through product markets or markets for technology.
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Document Type: Research Article

Affiliations: 1: Department of Business, University of Guelph, 50 Stone Road East, Guelph, ON, Canada N1G 2W1., Email: [email protected] 2: Department of Management Sciences, University of Waterloo, 200 University Avenue West, Waterloo, ON, Canada N2L 3G1., Email: [email protected]

Publication date: 2007-09-01

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