The role of investors in developing academic spin offs: The biotech sector in South Africa
Background: While research on commercialisation of academic research suggests that close interaction among academic entrepreneurs, technology transfer officers and investors can aid developing academic spin-offs, we argue that the role of investors is underdeveloped in the literature. Aim: This pap...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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AOSIS
2023-11-01
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| Series: | The Southern African Journal of Entrepreneurship and Small Business Management |
| Subjects: | |
| Online Access: | https://sajesbm.co.za/index.php/sajesbm/article/view/738 |
| _version_ | 1827596055896653824 |
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| author | Øystein S. Høvig S. Høvig Inger B. Pettersen Adolph C. Neethling Brandon Paschal Randi E. Taxt |
| author_facet | Øystein S. Høvig S. Høvig Inger B. Pettersen Adolph C. Neethling Brandon Paschal Randi E. Taxt |
| author_sort | Øystein S. Høvig S. Høvig |
| collection | DOAJ |
| description | Background: While research on commercialisation of academic research suggests that close interaction among academic entrepreneurs, technology transfer officers and investors can aid developing academic spin-offs, we argue that the role of investors is underdeveloped in the literature.
Aim: This paper aims to build new theoretical and empirical knowledge about the investor’s role in developing academic spin-offs. Focus is put on the interaction and dynamic relationship between investors, academic entrepreneurs and technology transfer office executives in academic spin-off (ASO) development.
Setting: The research is empirical in nature and conducted in the entrepreneurial ecosystem surrounding universities in the Western Cape area in South Africa.
Methods: The research is qualitative with a focus on conducting research interviews with knowledgeable respondents. Fourteen semi-structured interviews were used to collect data from investors and other stakeholders in the entrepreneurial ecosystem in the Western Cape area in South Africa.
Results: Four themes were uncovered. The study demonstrates a challenge of commercialising research-based inventions; both the team and the entrepreneur play an important role in the commercialisation process; investors can play a role in educating and coaching academic entrepreneurs and play a brokering role in attracting venture capital (VC) funding.
Conclusion: The study concludes that the pre-investment behaviour of investors, in relationship with technology transfer offices (TTOs) and academic entrepreneurs, may help mitigate assumed information asymmetries and uncertainty in ASO development.
Contribution: The research contributes to the literature by showing how investors’ perception, pre-investment behaviour and vision shape the development of ASOs in a dynamic interaction with technology transfer executives and academic entrepreneurs. |
| first_indexed | 2024-03-09T03:04:05Z |
| format | Article |
| id | doaj.art-84c48fe498a4427d933ec7b06b298263 |
| institution | Directory Open Access Journal |
| issn | 2522-7343 2071-3185 |
| language | English |
| last_indexed | 2024-03-09T03:04:05Z |
| publishDate | 2023-11-01 |
| publisher | AOSIS |
| record_format | Article |
| series | The Southern African Journal of Entrepreneurship and Small Business Management |
| spelling | doaj.art-84c48fe498a4427d933ec7b06b2982632023-12-04T08:13:44ZengAOSISThe Southern African Journal of Entrepreneurship and Small Business Management2522-73432071-31852023-11-01151e1e1110.4102/sajesbm.v15i1.738155The role of investors in developing academic spin offs: The biotech sector in South AfricaØystein S. Høvig S. Høvig0Inger B. Pettersen1Adolph C. Neethling2Brandon Paschal3Randi E. Taxt4Mohn Centre for Innovation and Regional Development, Faculty of Engineering and Science, Western Norway University of Applied Sciences, BergenMohn Centre for Innovation and Regional Development, Faculty of Engineering, Western Norway University of Applied Sciences, BergenDepartment of Business Management, Faculty of Economic and Management Sciences, Stellenbosch University, StellenboschCadence Lyfe Consulting, StellenboschDepartment of Geography, University of Bergen, Bergen; and, Vestlandets innovasjonsselskap AS, BergenBackground: While research on commercialisation of academic research suggests that close interaction among academic entrepreneurs, technology transfer officers and investors can aid developing academic spin-offs, we argue that the role of investors is underdeveloped in the literature. Aim: This paper aims to build new theoretical and empirical knowledge about the investor’s role in developing academic spin-offs. Focus is put on the interaction and dynamic relationship between investors, academic entrepreneurs and technology transfer office executives in academic spin-off (ASO) development. Setting: The research is empirical in nature and conducted in the entrepreneurial ecosystem surrounding universities in the Western Cape area in South Africa. Methods: The research is qualitative with a focus on conducting research interviews with knowledgeable respondents. Fourteen semi-structured interviews were used to collect data from investors and other stakeholders in the entrepreneurial ecosystem in the Western Cape area in South Africa. Results: Four themes were uncovered. The study demonstrates a challenge of commercialising research-based inventions; both the team and the entrepreneur play an important role in the commercialisation process; investors can play a role in educating and coaching academic entrepreneurs and play a brokering role in attracting venture capital (VC) funding. Conclusion: The study concludes that the pre-investment behaviour of investors, in relationship with technology transfer offices (TTOs) and academic entrepreneurs, may help mitigate assumed information asymmetries and uncertainty in ASO development. Contribution: The research contributes to the literature by showing how investors’ perception, pre-investment behaviour and vision shape the development of ASOs in a dynamic interaction with technology transfer executives and academic entrepreneurs.https://sajesbm.co.za/index.php/sajesbm/article/view/738investorsuniversity fundstechnology transferentrepreneurial ecosystemacademic spin-offcommercialisation of researchbiotechsouth africa |
| spellingShingle | Øystein S. Høvig S. Høvig Inger B. Pettersen Adolph C. Neethling Brandon Paschal Randi E. Taxt The role of investors in developing academic spin offs: The biotech sector in South Africa The Southern African Journal of Entrepreneurship and Small Business Management investors university funds technology transfer entrepreneurial ecosystem academic spin-off commercialisation of research biotech south africa |
| title | The role of investors in developing academic spin offs: The biotech sector in South Africa |
| title_full | The role of investors in developing academic spin offs: The biotech sector in South Africa |
| title_fullStr | The role of investors in developing academic spin offs: The biotech sector in South Africa |
| title_full_unstemmed | The role of investors in developing academic spin offs: The biotech sector in South Africa |
| title_short | The role of investors in developing academic spin offs: The biotech sector in South Africa |
| title_sort | role of investors in developing academic spin offs the biotech sector in south africa |
| topic | investors university funds technology transfer entrepreneurial ecosystem academic spin-off commercialisation of research biotech south africa |
| url | https://sajesbm.co.za/index.php/sajesbm/article/view/738 |
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