Academic entrepreneurship in South East Asia: an exploratory study of spin-offs in biotechnology from Hong Kong universities

Abstract

University research with associated spin-offs is at the heart of knowledge generation in the biotechnology industry. However, only a few studies have so far dealt with biotechnology university spin-offs in Hong Kong (HK), a latecomer in this industry. The purpose of this research is to gather information about the history and innovative status of biotechnology university spin-off companies in HK in order to understand the dynamics of this phenomenon better. This study arrived at several important conclusions about biotechnology spin-off firms in Hong Kong; specifically that the firms are relatively small in size and young, were mostly formed by university staff, and created with joint effort. In addition, these firms developed commercial products and services, are aware of intellectual property protection, are motivated to create spin-offs in order to apply knowledge to practical applications and utilize market opportunities. However, the firms also face challenges, such as difficulties in accurately estimating the market demand for their products, and technical problems in the development and production of their products. Furthermore, difficulties with financing are also an important inhibitor to success.

Keywords:

• academic entrepreneurship
• spin-offs
• university spin-offs
• biotechnology industry
• Hong Kong

Notes

This is not an unusual phenomenon. Even in developed countries obtaining sufficient data in this relatively new branch of enquiry led researchers to use more qualitative techniques, such as case studies (Rothaermel, Agung, and Jiang 2007, p. 701).

Smilor and colleagues' (1990) two-dimensional definition. In the aforementioned study, the authors excluded the spin-off firms that provided consulting services. However, those types of companies were included in our research.

A spin-off is described as a new company created to transfer and commercialize inventions and technology developed in universities, firms or laboratories.