Does university prestige foster the initial growth of academic spin-offs?

This paper provides empirical evidence on the role of prestigious academic institutions in fostering spin-off companies with high-growth potential. We argue that, on the one hand, prestigious universities are likely to provide crucial information, resources and contacts to affiliated firms, enhancing the performances of academic spin-offs. On the other hand, since university reputation is at stake, there is an incentive for prestigious institutions to scrutinize the quality of spin-offs before allowing them to hit the market. Using a sample of 508 spin-offs launched from 85 Italian universities in the period 1999–2015, we find that university prestige is correlated with the expected growth rate of spin-off at the time of their birth, either directly or by moderating the university orientation for teaching and outreach activity (“third mission”).