CRITICAL JUNCTURES IN THE DEVELOPMENT OF UNIVERSITY HIGH-TECH SPINOUT COMPANIES.

Abstract

This article provides an inductive empirical investigation into how university high-technology spinout companies develop. A university spinout (USO) is defined as a venture founded by employees of the university around a core technological innovation which had initially been developed at the university. Data were collected using in-depth face-to-face and telephone interviews with representatives from the nine USO, as well as each of their financial investors and seven associated universities over the twelve-month period from July 2001 to July 2002. Critical junctures refers to a complex problem that occurs at a point along a new high-technology venture's expansion path preventing it from achieving the transition from one development phase to the next. Critical junctures occur precisely because of the conflict between a USO venture's existing level and type of resources, capabilities and social capital, and those required to perform in the proceeding phase of development. As a result of the idiosyncratic development of each USO through each development stage, deficient social capital, resource weaknesses and inadequate internal capabilities were all dependent upon the unique evolutionary path each USO followed.