Neither absent nor too present. The effects of the engagement of parent universities on the performance of academic spin-offs

There is a lack of studies regarding the impact of parent-child relationships on the growth of academic spin-offs (ASOs). The aim of this paper is to investigate whether the presence of the parent university can affect a new venture’s ability to create value after the spin-off is founded. We analyze the engagement of parent universities by examining their different roles in ownership structures and on boards of directors, and we test theoretical hypotheses using a sample of 194 Italian ASOs. Overall, our findings suggest that “neither absent nor too present” is the strategy that the parent university should adopt to support the growth of its spin-offs. These findings contribute to extending the parent-child approach to studies of ASO performance. We provide suggestions for ownership and board composition decisions after spin-off to help universities configure ex ante appropriate actions for the growth of new ventures.