How critical is timely product development for the survival of early-stage academic spin-offs?
Faculty of Applied Economics
S.l. , 2013
Engineering sciences. Technology
Proceedings of the RENT XVII Conference, Vilnius, Lithuania, 20-22 November 2013
University of Antwerp
The ultimate survival of new ventures in first instance strongly relates to the success of their first product. In this sense, the new product development process can be of critical importance. This is even more true for early-stage product-oriented academic spin-offs, which typically operate in a high-tech environment and further build on rather immature technologies. The aim of this study is to analyse the impact of new product development characteristics in terms of timely delivery and budgetary impact on the survival likelihood of new academic spin-offs. The results, based on a dataset of 185 European spin-offs, highlight the importance of not exceeding new product development timing or budget, given their negative impact of survival likelihood. The discussion suggests incorporating new product development stages as anchoring points in life cycle models of new ventures.