It is possible to make a distinction between research and entrepreneurial activi- ties. More specifically, the former could be defined as an exploration process while the latter is considered an exploitation process (Chiesa and Piccaluga, 1996). In the lights of such distinction, the transformation process of research output into new firms is neither simple nor instantaneous. In fact, despite strong motivations, a huge variety of cultural, organizational, legal and financial bar- riers hinder such a transformation process. Besides people involved in research-related activities, such barriers may prevent whoever works for uni- versities and research centres from creating a new venture. Therefore, a wide spectrum of both formal and informal supports aimed at overcoming such bar- riers is required. These supports stimulate the creation of new academic spin-offs (Van Alstè and Van der Sijde, 1998; Varaldo and Piccaluga, 1994). This para- graph focuses on the analysis of both formal and informal supports for the academic spin-off creation process.
To begin with, formal supports could be defined as institutional tools that provide academic spin-offs with infrastructure, financial resources, cultural, legal and organizational supports (Table 4.1). Direct financial contribution as well as indirect ones – tax incentives, favourable loans, and so on – are particu- larly important mechanisms in promoting entrepreneurship among young people with limited resources (that is, undergraduate students, graduate students, PhD students). Moreover, it is necessary to provide academic entrepreneurs with other financial supports that are geared to their needs. A case in point is repre- sented by venture capital. According to Capaldo and Fontes (2001) academic entrepreneurs do not consider formal supports other than financial ones as cru- cial. This is due to the fact that most of the times such supports are not tailored to the needs of the business area academic entrepreneurs are dealing with.
Informal supports could be described as a network made up by different rela- tionships each entrepreneur relies on (Table 4.2). Such a network plays a crucial role for entrepreneurs. It provides them with vital pieces of information and business-related opportunities. Academic entrepreneurs take advantage of such a network in order to compensate for their weaknesses. Informal supports are vital for overcoming difficulties that are ineffectively faced by formal supports.
Table . Typology of formal support obtained by firms Typology of formal support
Financial subsidies for investments Financial contributions to R&D activities Financial contributions to operational costs Favourable loans
Tax exemptions
Training courses on business plan preparation Business training courses
Management consultancy activities Access to database
Information on new market opportunities Information on technological opportunities
Assistance in the establishment of contacts with other firms for commercial purpose
Equipment maintenance assistance
Source: Capaldo and Fontes (2001).
Table .2 Typologies of informal support obtained by the firms Typology of formal support
Informal family support
Informal support from academics and researchers Informal support from customers
Informal support from consultants
Source: Capaldo and Fontes (2001).
In this respect, the support offered by relatives and friends together with informal relationships with customers can facilitate the early-stage activities of academic entrepreneurs. In fact, the support network represents the key link between such entrepreneurs and the market they operate in (Bellini et al., 1996; Capaldo et al., 1997; Johannisson, 1998; Monsted, 1998; Mustar, 1994). Moreover, it provides these entrepreneurs with vital competencies for successfully implementing their business ideas. Therefore, the presence of a network represents an always avail- able support that can be exploited by academic entrepreneurs.
Formal and informal supports are complementary tools that facilitate the emergence of new business ideas and lay the foundation for the creation of new
Table .3 The impact of different supports on barriers hindering the creation of academic spin-offs
Barriers Supports Impact
Cultural Formal:
– Business plan preparation courses – Business training courses
– Start-up and ‘business fertilization’
activities Informal:
– Participation in conferences and university seminars on
entrepreneurship
– Favourable academic culture biased towards entrepreneurship
– Networks with local firms
To develop
entrepreneurial culture within universities To support the transition from the exploration to the exploitation of scientific related topics To expand the knowledge of the scientific results that can be commercialized Organizational Formal:
– Management consultancy activities – Information on new market
opportunities
– Information on technological opportunities
– Support for the establishment of contacts with other firms for commercial purposes – Support for the equipment
maintenance Informal:
– Informal support from customers – Informal support from consultants – Informal family support
To provide new ventures with
organizational tools and managerial
competencies
Legal Formal:
– To manage the patent application process
– To deal with legal problems related to the compatibility of university- related activities and
entrepreneurial-related activities
To change rules regulating the business exploitation of research output
Financial Formal:
– Financial subsidies for investments – Financial contribution to R&D
activities
– Financial contribution to operational costs
– Favourable-condition loans – Tax exemptions
To provide new ventures with financial resources
ventures. Formal supports provide potential new ventures with standard tools.
More specifically, such tools do not take into account the specific features of the firms utilizing them. In other words, formal supports are not tailored to the individual needs of new ventures. Therefore, it is necessary to integrate such supports with informal ones. The latter category provides start-up firms with a network of both direct and indirect relationships that are somehow related to the specific needs of new ventures (that is, vertical markets; sources of competencies).
To sum up, both supports are crucial in fostering the creation of new firms.
On the one hand, formal supports facilitate the transformation of innovative ideas into business ideas that lay the foundation for the creation of new ventures.
On the other hand, informal supports help potential new ventures bridge the gap with market-related agents (that is, customers, suppliers, and so on). Table 4.3 shows the impact of formal and informal supports on obstacles preventing the creation of academic spin-offs.