Please read our summary of the most frequent questions and their answers regarding the establishment of spin-offs. You can test your knowledge on the topic if you try to answer the questions before checking the answers.
Why is it worth to establish a company?
It is worth to establish a company if the research or relating services cannot be done within the boundaries of the university, or further growth can be achieved only if operating as a company. A typical example is when a basic research results in an invention that can be utilized and product development has to be made. Another example is when a service based on knowledge becomes a frequent, reliable source of income for the research group, thus for the sake of easier administration it is worth to establish a company.
How can I decide if an activity is ready for establishing a company?
If the given activity does not fit with the main functions of the University (education, research, medicine, innovations), but the participation of the University is somehow of advantage, than most likely it is worth to establish a company.
Who can establish a spin-off company?
Any researcher of the University.
What is the difference between a spin-off and a startup company?
In international practice the two categories can often be exchanged. A spin-off is a company that grows out of a research location that is created to work out a particular idea. A startup simply means a new company; the term most often is used in case of knowledge-intensive companies.
What is a utility company?
A legal category which defines the ownership of research location and professional contribution, moreover it arranges the company under innovation law, this way relating laws and regulations are simplified compared to other companies belonging to the University. The form of utility companies are the same as the form of other companies, typically LLC.
Law of higher education 121. § (7) If the institution of higher education is entitled to an intellectual property it can transfer it to a company as a non-monetary contribution. Companies established for this reason have to employ the law of 2004. XXXIV. about research and development and technological innovation. Law of innovation 19. § (1) If a government agency is entitled to the right of intellectual work, it can give this right as a contribution to a company (utility company) as a non-monetary contribution.
Law of higher education 121. § (7) If the institution of higher education is entitled to an intellectual property it can transfer it to a company as a non-monetary contribution. Companies established for this reason have to employ the law of 2004. XXXIV. about research and development and technological innovation. Law of innovation 19. § (1) If a government agency is entitled to the right of intellectual work, it can give this right as a contribution to a company (utility company) as a non-monetary contribution.
What is the use of all these categories since all of them are companies?
The role of complicated regulations is primarily to help the development and utilization of intellectual properties. An ice-cream parlor opened by a researcher of the University is not considered to be a utility-company, not even a spin-off nor a startup. On the other hand if the researcher produces the ice-cream as a result of the university owned patent of his own food-research and has purchased the license from the University, than the company fulfills all the above criteria. A utility-company can get a hold of development tenders easier, both, from domestic or european resources. Some tenders only allow participation of companies partially owned by the University.
The establishment of what type of companies does the University support?
The University primarily supports the establishment of utility-companies that fall under one of the following 3 categories:
• Spin-off established to utilize intellectual property with a minority share of the University
• Provider, consultant spinoff with majority share of the University
• A startup established by a researcher of the University, without University share
Detailed description of the above companies can be downloaded.
• Spin-off established to utilize intellectual property with a minority share of the University
• Provider, consultant spinoff with majority share of the University
• A startup established by a researcher of the University, without University share
Detailed description of the above companies can be downloaded.
What do I do if I think it's time to establish a company?
We advise you to study the documents carefully (you can download them below), and create your idea that answers the following questions:
What is the primarily goal of the company?
What would be the main activity of the company?
What is the role of the University in the operation of the company?
Who are going to be the owners of the company? In what percentage?
Using these ideas with the help of our colleagues we develop the company structure, prepare the articles of association and start the proceedings of company establishment according to University requirements. (documents to be downloaded).
What is the primarily goal of the company?
What would be the main activity of the company?
What is the role of the University in the operation of the company?
Who are going to be the owners of the company? In what percentage?
Using these ideas with the help of our colleagues we develop the company structure, prepare the articles of association and start the proceedings of company establishment according to University requirements. (documents to be downloaded).
I already have a company. What's next?
The success of a company primarily depends on the capabilities of the management and it is even more so in case of knowledge intensive companies: to manage a lumberyard without specific education could work, but only few can develop medicine. The experience in case of viable technology intensive companies is that not the best, but the best managed idea is the key to success. Therefore Semmelweis Innovations provides significant amount of resources to help the self-established companies to stay in business even on an international scale. You can find out more about our business development activity here: semmelweisinnovations.com
I already have a family business. Can I involve the University in it?
To obtain part of a company a state owned university needs to go through a lengthy and expensive filtering process which can lead to further risk. Therefore - if the goal is a utility company - the University suggests to establish a new company.
I already have an independent R+D company. Can I still take advantage of the services of Semmelweis Innovations?
Certainly, since a startup company of a researcher of the University - although with different conditions - is just as much a client of the University as the companies having University shares in their ownership. This company can sign up to become a member of Semmelweis Innovations cluster, participate in virtual incubation, take part in the business development program at a discounted price, etc.
I already have an independent R+D company. Can I still take advantage of the services of Semmelweis Innovations?
Certainly, since a startup company of a researcher of the University - although with different conditions - is just as much a client of the University as the companies having University shares in their ownership. This company can sign up to become a member of Semmelweis Innovations cluster, participate in virtual incubation, take part in the business development program at a discounted price, etc.
