Knowledge Transfer Linkages, Research Quality, and the Early Performance of Academic Spin-offs

The purpose of this study is to examine whether, and under which conditions, knowledge transfer from a public research organization (PRO) determines the early performance of academic spin-offs. Distinguishing between three different types of knowledge transfer linkages between a parent PRO and its spin-off firms (i.e., formal, informal, combinatory), we study the parent PRO’s research quality at the time of spin-off creation as a moderator of the knowledge transfer-performance link. The analysis is based on a sample of 133 companies spun off from German universities and public research institutes. The data reveal that formal, informal, and combinatory knowledge transfer positively predict the early performance of academic spin-offs. Performance effects of informal and combinatory knowledge transfer further depend on the research quality of the parent PRO.