University spin-offs and economic impact on semi-peripheral regions in the Netherlands

Abstract

In this study, several aspects of Saxion spin-offs have been analysed, the numbers, workplaces, location, migration, gender issues, different economic sectors and survival rates. The main question underlying all these analyses was what the impact of Saxion as university of applied sciences is on the regional economy of the two regions in which it is located. From the literature, the concept of an entrepreneurial ecosystem, as explanatory factor for the observations that in certain regions more graduates or staff members start their own business and that such an ecosystem helps small fledgling businesses to survive and grow is an interesting concept. Unfortunately, the theoretical foundations are still not fully crystallized, therefore measuring the actual influence of such entrepreneurial ecosystems is still a difficult exercise. In this study, Saxion spin-offs from two regions, Twente and the Cleantech Region, have been analysed, and several differences in terms of number of spin-offs, employment, migration patterns and survival rates have been identified. Since the spin-offs are from the same university of applied sciences, with the same policy regarding support of entrepreneurship and both regions are located outside of the economic core regions of the country, it appears as if the strength of the regional context, the regional entrepreneurial ecosystem and the business opportunities it provides is a factor in explaining why there are more spin-offs in Twente (even when controlling for the larger size of the Saxion campus in this region). If one assumes that the strength of the entrepreneurial ecosystem is stronger in Twente (among others because of existing business networks, the availability of a world class research university, the University of Twente and a business support organization like Novel-T), it would explain why spin-offs located in this region on average offer more workplaces, and have a higher survival rate than in the Cleantech Region. Gender differences related to entrepreneurship are present in Saxion spin-offs, female graduates and staff members are much less likely to start a spin-off company than their male counterparts. When females do start, their spin-offs are on average much smaller in terms of workplaces offered. Their businesses have on average an equal survival rate than those started by a male entrepreneur. Findings from the literature on the subject and the numbers found in this study suggest that there is a need for specific programs in Saxion targeting females, to at least think about starting their own business. Also, specific mentoring programs for spin-offs with female entrepreneurs may help to let these businesses grow and increase their regional economic impact. Saxion spin-offs can be found in many different sectors, something understandable given the broad spectrum of study programs in Saxion. Even though most spin-offs remain micro sized businesses, certain economic sectors seem to offer better scalable business models, especially in sectors such as industry, information and communication technology businesses and business support services. The number as well as employment in the more innovative and internationally competitive topsectors is much higher in the region Twente than in the Cleantech Region, possibly another consequence of the – apparently – stronger regional entrepreneurial ecosystem in Twente. An often-stated argument for regional economic development is that investing in spin-off companies will help to create workplaces in the region, since companies are not very likely to move. In this study, the data on migration of spin-offs have been compared with the migration of graduates, based on the HBO-monitor survey. It is not possible to one-on-one compare the two datasets, as the migration of spin-offs is calculated for the first five years of their existence and the HBO-monitor is held around one and a half year after graduation. Still, w