Economic Success of Employment and Revenue Generated From Research Commercialization Activities

Abstract

The concept of entrepreneurial universities has gained more attention from policy makers and academics due to its perceived prospect of contributing to innovation and economic growth. Spin offs companies helps universities to commercialize their knowledge and technological developments. The commercialization of academic research results through academic spin-offs is becoming an important and increasingly reliable source of revenue for universities. Universities also contribute to employment creation when they establish new spin off firms or help to revamp existing ones. Universities and industries usually cooperate and engagement themselves through joint research projects and this helps universities to commercialize and exploit research results by way of patents licensing and spin-offs. The main focus of this paper is to establish the relationship that exits between the economic successes of spin offs in terms of employment and revenue generation and their spillover effects of contributing to regional growth and development. Using the linear regression method, this paper has demonstrated that, spin offs firms contribute better to employment creation than revenue generation. Spin offs that are partially owned by higher educational institutions and those termed social enterprises contribute better to employment creation than those without the full control of university’s management. Spin offs do contribute insignificantly to revenue generation.