The purpose of a technological spin-off is to provide a world-changing solution for a market. It requires having developed an innovative unique technology.
Technological spin-offs require the participation of three agents:
1) The provider of the innovative solution
2) The marketplace builder
3) The investor
“By definition” innovations require the development of a new marketplace which needs the necessary investment to develop it until the new value adding solution is part of the establishment of a market.
When corporations develop the spin-offs the investor and the marketplace builder might be one.
Spin-offs are successful when the innovative technology solves an extreme scarcity by providing solutions that were not possible before. That is why the spin-off business is meaningful when it provides “world-changing” technologies.