Although it is companies that must generate greater productivity to trigger the development of a country, various actors intervene in the process such as: the government, universities, society, businessmen, and factors of an economic, social, cultural and political nature., which must be perfectly articulated to achieve development in a local environment.
Two of the main forces of economic life are entrepreneurship and technological development. In our day, in a competitive and globalized world, the ability to create new innovative products and companies is crucial to promote rapid structural change and national or regional development (AIN / Fhg-ISI 2000).
In environments with rapid change and high uncertainty, strategy is an essential factor in having exponential growth. In the same way, additional value will be given to customers when the organization has potential resources such as a business model. By adapting a business model, the firm can focus on efficiency costs or market strategy to create value in market positioning. The business model works as the strategy for resources to fit into the company. The business model and strategy can complement and enhance a competitive advantage and growth (Yasin, Quoquab, Kamarudin, 2016).
Schönbohm & Zahn (2012), establish that capital budgeting decisions are in a framework where greater impacts are generated on the long-term performance of organizations. These decisions are based on projections and on the forecast of possible future behavior of the business and its environment, variables that are largely not under the control of the company or precisely predictable.
The objective of this article is to propose an empirical reference framework to know the importance of the capital budget within the business model of an academic spin-off that leads to a successful performance. This is because it is difficult for academic spin-offs to adopt a product-oriented business model.
Spin-offs and their denomination.
Spin-Offs are companies that arise from ideas with the ability to materialize as business opportunities, proposed by people who manifest themselves as potential entrepreneurs; With which opportunities for employment, knowledge transfer to society are opened in an optimal way and benefits achieved.
Spin-Offs, also known under the concept of New Technology Based Firms (NTBF) or NEBT; They manifest as part of their characteristics being competitive thanks to their technological and scientific foundation, which allows them to provide the market with a high volume of innovative services and products. (Palacios, del Val & Casanueva, 2004).
Academic spin-offs and their functions.
Academic spin-offs are founded on technological opportunities originating from academia. That is, to exploit advanced technology or new knowledge acquired during scientific activities in universities and develop them in order to start a business.
Although the initial technology emerged in the university, internal capabilities for development, research and innovation are essential in these companies to remain competitive. So it is essential for these companies to have the capabilities to develop new products or services from their employees, this is achieved through innovation and creativity. Creativity occurs by generating novel and useful ideas, which within companies help to identify and solve problems. Innovation is administratively defined as the opportunity to generate new ideas and implement them successfully (Sousa, Conceição, 2013).
These are the key aspects of academic spin-offs and their relationship with their parent institution.
- The main function of a spin-off is the transfer of knowledge and the result of research to form new products, services or consultancy. There is an asymmetry between academia and industry from the point of view of business knowledge and skills. administration that are needed in a company. That is why the need for learning on the side of researchers. There is a need for deliberate policies that support the process of commercialization of research results and that protect patents, licenses, which are expected to be created by academic spin-offs. There are a need for a financial scheme that supports academic spin-offs, derivation capital, public research grants. The ambition to grow is a good goal, although most spin-offs remain small.The dominant differences in culture, organizational design and motivation between the new knowledge and applying it in industry (Tchalakov, Mitev and Petrox, 2010).
The early development of the Business Model
There is a pattern in the evolution of the business models adopted by spin-offs. During the period of creation and early development of spin-offs there are constant adjustments to make the operation more profitable and scalable. They can even change the business model.
Among the resources that companies use during their creation and early development are technological, human, social capital, financial, physical and organizational resources. Technology resources refer to the basic skills and specific technology of each company. Human resources are analyzed based on technical and administrative terms. Organizational resources describe ownership or access to network infrastructure and distribution, technical support, customer base, and vendor strategies. Financial resources refer to the amount of capital required to install or develop new products. Social capital is an inter-relationship between entrepreneurs, projects and the environment.
Capital budget, key evaluation factor.
Within the Academic Spin-offs, decision making is improved through economic analysis in investment projects to optimize productivity indices (Márquez Díaz, Castro, & Julián, 2015). The economic analysis is based on the financial evaluation criteria that are the net present value, internal rate of return and investment recovery period, which is applied to the information of the capital budget or investment project budget.
In relation to the investments that arise from the ventures, which to carry out an investment requires leverage and to establish whether a project is viable or feasible, an instrument called a long-term investment project budget is needed, such as mentions, (Useche Arévalo, 2014), that capital budget decisions generate a greater impact for the long term of companies, which are based on projections and future behavior, variables that are uncertain within the economy of a country.
conclusion
The knowledge to evaluate a business model in an Academic Spin-off is of vital importance considering the capital budget as a fundamental tool, and applying the financial evaluation criteria, they are fundamental to determine if an investment project is viable or financially feasible, since to a large extent the success of this type of economic entity is crucial for its development in the short term.
References
AIN / FhG-ISI (2000) Hochtechnologie (2000) Neude definition der Hochtechnologie fürdie Berichterstattung zur technologischen Leistungsfa¨higkeit Deutschlands.
Márquez Díaz, C., Castro, M., & Julián, F. (2015). Use of the Net Present Value, Internal Rate of Return and Benefit-Cost Relationship in the Financial Evaluation of a Foot-and-Mouth Disease Vaccination Program in the state of Yaracuy, Venezuela. Journal of the Faculty of Veterinary Sciences, 56 (1), 58–61.
Palacios, M.; Del Val, T. and Casanueva, C. (2004). Investment in New Technology-Based Companies in the Community of Madrid, Polytechnic University of Madrid, Spain.
Schönbohm, A., & Zahn, A. (2012). Corporate capital budgeting: Success factors from a behavioral perspective. Research Report no 21. Kaiserslautern: Technische Universität Kaiserslautern.
Sousa C., Conceição L., (2013), Innovation, creativity and reward practices in academic spin-offs: The case of the IST Spin-off Community, Portuguese Journal of Social Science, 12 (3), 263-286.
Tchalakov I., Mitev T. and Petrox V., (2010), The Academic Spin-Offs as an Engine of Economic Transition in Eastern Europe. A Path-Dependent Approach, Springer Science + Business Media, 48, 189-217.
Useche Arévalo, AJ (2014). Over Confidence and Optimism in Capital Budgeting Decisions: Corporate Finance from a Behavior-Centered Approach. University & Business, 16 (26), 93–114.
Yasin NM, Quoquab F., Kamarudin S., (2016), Transnational Social Capital, Business Model Design, and Firm's Growth in the Context of University Spin-off Companies, International Review of Management and Marketing, 6 (4), 53- 60.
