Social Networks and the Success of University Spin-offs

Abstract

This study explores the economic factors that are associated with the success of university spin-offs. Drawing on a unique sample of academic entrepreneurs from research institutions in New York State, the article finds that spin-off success is dependent on both the type and size of the academic entrepreneur’s social network. Specifically, extraregional networks of nonacademic contacts—including investors, researchers from other companies, and advisors—allow academic entrepreneurs access to a broader base of knowledge and other resources important to spin-off success, which leads to regional economic development.