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.
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