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Our results show that knowledge about markets combined with applied research (funded by an industrial sponsor) were important factors that positively affected the opportunity recognition process. indd 47 29/9/10 11:51:30 48 The theory and practice of entrepreneurship or directly evaluating the commercial feasibility of academics’ research results and by identifying and securing an industrial sponsor willing to fund the spin-off development. Surprisingly, two of our selected USOs declared that they had not recognized any concrete business opportunity.

2004, p. 164). Threshold of sustainability. It may take the form of revenues from customers, milestone payments from collaborative agreements or investment from existing or new investors. Factors and Resources Influencing the USO Creation and Development Process The resource-based approach is particularly helpful in shedding light on the factors contributing to the nature and outcome of a spin-off arrangement (Parhankangas and Arenius 2003, p. 465). indd 35 29/9/10 11:51:29 36 The theory and practice of entrepreneurship evidence in terms of required resources to move from one stage to another.

2004). For example, Lockett et al. (2005) identified five main stages that developed iteratively: research, opportunity, pre-organization, reorientation and sustainable. Another example is Clarysse and Moray (2004) that identified the following steps: idea, pre-start-up, start-up and post-start-up or opportunity recognition. It is important to notice that these models vary from one author to another, stressing the step they consider most important. However, there are common features that enable one to find a core process.

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