Complements or Substitutes?: An Empirical Analysis of the Role of Universities and Local Context in Supporting the Creation and Growth of Academic Start-Ups

Abstract

The effects of university-level support mechanisms, implemented within universities to foster the creation of academic start-ups, are discussed in comparison with local-context support mechanisms, available to any new start-ups in a particular territory. Using a sample of 74 US academic start-ups, we show that university-level support mechanisms are considered relevant whenever not replicating other support mechanisms available locally. Academic start-ups benefiting from university-level support mechanisms, ceteris paribus, are 2.6 times more likely to access Venture Capital funding, which in turn allows them to grow in the first years of their activity 22% more than non venture-backed start-ups. Implications on the role and limitations of universities in supporting academic start-ups are presented and discussed.