Spin-out

Spin Out is an organizational unit separated from the parent company. Separated part (target company) becomes independent, and receives part of the property, intellectual property rights and patents, technology, and customers of the parent company.

This methods is often used on universities, research institutions and research centres. Spin-out usually occurs when the owners of capital of the parent company receive shares in the newly formed company.

The concept of spin-out is often used in conjunction with the spin-off in the same context. But spin-off happens when a company creates a new company from one of the existing departments, subsidiaries, or subunits.

In contrast to the spin-off, spin-out companies do not have a soft cushion in the parent company and are responsible for their finances, developing and maintaining relationships with new decision makers and stakeholders, and are not managed by the management structure of the parent company. The main idea of the creation of spin-out is need to commercialize research results, technology and intellectual property on the market.

See also:

• Innovation process

Spin-out — recommended articles

Corporate governance — Open innovation — Start-up — Holding — Merger — Sources of innovation — Industrial park — Cluster development — Business incubator

References

• Aslinger P., Bonini S., Patsalos-Fox M., Doing the spin out, "McKinsey Quarterly - Corporate Finance", No. 1, 2000, p. 98-105
• Clarysse B., Wright M., Ucbasaran D., Knockaert M., How does tacit knowledge transferinfluence innovation speed? The case of science based entrepreneurial firms, Vlerick Leuven Gent Working Paper Series, July 2009
• Clarysse N., Wright M., Lockett A., Van de Velde E., Vohora A., Spinning out new ventures: A typology of incubation strategies from european research institutions, University of Gent Working Paper, February 2004
• Djokovic D., Souitaris V., Spinouts from academic institutios: A literature review with suggestions for further research, "The Journal of Technology Transfer", Vol. 33, No. 3, June 2008, p. 225-247