PRIVATE SECTOR spin-off companies outperform their university equivalents in the biotech sector, according to research undertaken by an academic in NUI Maynooth.
Dr Chris Van Egeraat found that while the number of university spin-off companies is on a par with the private sector they are relatively small, making up just 10 per cent of those employed in the sector.
He suggested that a main reason for this was because university spin-offs are not engendered with the same practical business skills as those coming from a private background.
“Universities have very narrow competencies; they are very RD focused,” he said.
“However, private sector spin-offs are inclined to have the knowledge that is important for these markets: commercial knowledge, how to attract venture capital, knowing who to approach.
“Venture capitalists are interested in a business plan; university professors are not always well versed in how to write a business plan.”
Dr Van Egeraat said there has been a big drive in recent years for universities to commercialise research in order to create a return on investment for the State.
He said the result is a situation in which ideas are spun out as soon as they show potential.
“There’s quite a bit of scanning around for opportunities and a lot of resources and manpower go into that . . . Perhaps we’ve gone a bit overboard on that,” he said.
The reasons an academic would want to spin off an idea might also be different to someone in the private sector, he said.
In some cases they may want to take their ideas to the next level for non-commercial reasons such as prestige, or to promote funding for future ideas.
Dr Van Egeraat said university research and spin-offs were important but it was also vital people recognise the importance of the private sector.
He suggested there needed to be a refocusing of some State agencies so that more time was spent encouraging venture capitalists to invest.
Students in areas such as the sciences also needed to learn more about the practical aspects of running a business, he said.
