Title: Opportunity spin-offs and necessity spin-offs

Authors: Guido Buenstorf

Addresses: Max Planck Institute of Economics, Evolutionary Economics Group, Kahlaische Strasse 10, D-07745 Jena, Germany

Abstract: This paper proposes a new distinction between two types of spin-offs, which is based on the events triggering spin-off formation. Spin-offs induced by newly discovered opportunities are distinguished from necessity spin-offs organised to escape deteriorating job conditions. An empirical analysis of spin-offs in the German laser industry traces differences in the performance and determinants of the two spin-off types. Necessity spin-offs are important to limit the devaluation of individual human capital by the competitive market process.

Keywords: spin-offs; necessity entrepreneurship; opportunity discovery; laser industry; spin-off formation; Germany; human capital.

DOI: 10.1504/IJEV.2009.023818

International Journal of Entrepreneurial Venturing, 2009 Vol.1 No.1, pp.22 - 40

Published online: 13 Mar 2009 *

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