University spin-off

University spin-offs (also known as university spin-outs) transform technological inventions developed from university research that are likely to remain unexploited otherwise. As such, university/academic spin-offs are a subcategory of research spin-offs. Prominent examples of university spin-offs are Genentech, Crucell, Lycos and Plastic Logic. In most countries, universities can claim the intellectual property (IP) rights on technologies developed in their laboratories. In the United States, the Bayh–Dole Act permits universities to pursue ownership of inventions made by researchers at their institutions using funding from the federal government, where previously federal research funding contracts and grants obligated inventors (wherever they worked) to assign the resulting IP to the government. This IP typically draws on patents or, in exceptional cases, copyrights. Therefore, the process of establishing the spin-off as a new corporation involves transferring the IP to the new corporation or giving the latter a license on this IP. Most research universities now have Technology Licensing Offices (TLOs) to facilitate and pursue such opportunities.
Critical steps in developing a spin-off.
University spin-offs typically go through a number of critical steps to develop the initial invention into a successful business venture. The following steps are critical in creating a successful spin-off (not necessarily in this order). 
See Small Business Innovation Research for associated spin-off funding opportunities.
Conditions for spin-off creation.
Some universities generate substantially higher numbers of spin-offs than others. Universities with high numbers of successful spin-offs:
Other issues.
University spin-off activity may give rise to potential conflicts of interest between commercial and academic work. In addition, the university’s reputation may be at risk if founders of spin-offs act inappropriately. Moreover, the antagonism between academic research and technology commercialization by way of spin-offs is likely to create fairness issues, for example regarding the distribution of royalties or equity. This antagonism can be managed by installing transparent procedures for the spin-off formation process that enhance fair treatment of all participants.