A new study from Japan’s Waseda University sheds light on why university spin-offs, despite abundant academic resources and deep scientific expertise, often struggle to match the success of corporate-born startups. The research, led by Professor Alex Coad of Waseda Business School, dissects the entrepreneurial DNA of both groups and finds key differences in motivations, culture, and identity that may explain the disparity in outcomes.
While University Startup Entrepreneurs (USEs)—faculty, researchers, or students launching ventures from academic labs—bring cutting-edge innovations to the table, they frequently lack the commercial edge that Corporate Startup Entrepreneurs (CSEs) develop from their industry experience.
Coad’s analysis, published in The Journal of Technology Transfer in June 2025, argues that the divergence starts with motivation. USEs often pursue entrepreneurship as an intellectual extension of their research, prioritising scientific exploration over financial returns.
In contrast, CSEs are driven by a mix of autonomy, financial ambition, and market validation, which makes them more responsive to customer needs and commercial dynamics.
As Professor Coad notes, despite robust institutional support, USEs often underperform in the startup arena, a pattern with implications for national innovation strategies across the region.
Moreover, USEs rely heavily on codified, academic knowledge, which may not transfer effectively across industries. CSEs, by contrast, leverage tacit business insights, gleaned from real-world experience, making them more adept at navigating markets and building customer relationships.
Identity also plays a role. USEs often struggle to shed their academic persona and fully embrace an entrepreneurial identity. This psychological barrier, combined with a reluctance to engage in managerial tasks or customer-facing roles, creates organisational friction that hampers growth.
Despite these challenges, Coad is optimistic. “Mentoring and peer networks can help USEs smoothly transition and adapt to their entrepreneurial role,” he says.
He advocates for tailored support from incubators and accelerators, encouraging USEs to adopt lean startup principles and deepen their understanding of customer needs.
This is particularly pertinent for governments and universities in Asia, where national policy often ties innovation performance to the success of academic startups. Adjusting these support systems to account for the unique traits of USEs could improve venture outcomes and help unlock the full potential of university-driven innovation.
—
Image Credit: Sincerely Media on Unsplash
The post Why university startups lag behind: Waseda University research reveals foundational gaps appeared first on e27.