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Are public subsidies effective for university spinoffs? Evidence from SBIR awards in the University of California system
File(s)
Supplemental material.pdf (504.49 KB)
Supplementary information
Author(s)
Fini, Riccardo
Perkmann, Markus
Kenney, Martin
Maki, Kanetaka M
Type
Journal Article
Abstract
This study examines the impact of public subsidies, and specifically, Small Business Innovation Research (SBIR) awards on university spinoff companies. Using unique data for a population of University of California spinoffs, we find pronounced differences between companies commercializing digital technologies (software and hardware), and those that focus on other product spaces. For digital spinoffs, receiving an SBIR award has a negative impact on raising venture capital and no impact on IPOs, exits or first sales. Conversely, for non-digital firms (e.g., biotechnology, energy), receiving an SBIR award has a positive effect on raising venture capital and performance outcomes. We reason that digital technologies are subject to faster cycle times and higher market uncertainty, relative to technological uncertainty. Digital firms may therefore benefit less from subsidies designed to support technology development, and private investors may view the need of digital companies to obtain such subsidies as a negative certification. Our findings inform policy by suggesting that the industrial domain may be an important boundary condition for the effectiveness of SBIR-type subsidies for university spinoffs.
Date Issued
2023-01-01
Date Acceptance
2022-10-31
Citation
Research Policy, 2023, 52 (1)
URI
URL
DOI
ISSN
0048-7333
Publisher
Elsevier
Journal / Book Title
Research Policy
Volume
52
Issue
1
Copyright Statement
© 2022 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
License URL
Identifier
https://www.sciencedirect.com/science/article/pii/S0048733322001834
Subjects
university spinoffs
commercialization
academic entrepreneurship
technology transfer,
venture capital
government grants
Publication Status
Published
Article Number
ARTN 104662
Date Publish Online
2022-11-14