Law and Innovation
Lex Research Ltd. focuses on finding and nurturing innovation, supporting nascent innovators, comparing the business regulation and governance approaches that have proved effective in developing and improving businesses. Our central goal is to develop strategic tools used to implement new ideas and technology effectively and attract investors. Today, companies use a wide range of organizational forms to introduce new technologies and products and develop new ways of venturing. Many cases of innovation seem to relate to cooperative agreements between large companies, based on new technologies or new applications. In addition to focusing on start-ups, the project will devote attention also to more established companies that are looking to developing new technology, spin out technologies and intellectual property, and create joint ventures and alliances.
We transmit skills to companies and start ups involved in the incubation process. Incubators are strongly included to support the knowledge gathering process and learning experiences and cooperate in educational programs designed to understand how innovative processes are developed and implemented. Today, most empirical research shows that the process of turning R&D projects into an incorporated company takes 18 months on average. During this period, parent company managers help turn engineers into entrepreneurs. The parent company and private equity investors are usually the main shareholder of the newly formed company, the remaining (minority) shares are owned by the entrepreneur-engineers. Once the decision about which project to select for incubation is made, the parent company often succumbs to the temptation of intervening excessively with management of the start-up company. However, the only role of the parent company is to provide, if needed, positive support and guidance, not to actually manage the project and then the start-up. It should provide a clear framework with sensible rules and then let go and allow the venture to find its own business trajectory. Indeed, it seems that such an incubator approach not only generates more value by creating equity in the start-ups for the parent company, but have also significant secondary effects. For instance, such an approach acts as role model infusing an entrepreneurial, business-oriented culture in R&D unit. In practice, many cases show that soon after the creation of an incubator is announced, many more candidate projects for spinning-off were submitted. Thus, given the success in creating spin-offs, the study of methods currently employed in such firms will complement the proposed research network’s approach to promoting knowledge, skills, and training.
Our advisers work to identify and draw attention to the main ingredients of the capital and corporate governance structures of successful technology companies, start-ups and spin-outs. Training focuses on the different industry and market practices that are vital to the development of successful ventures. Our well-considered approach provides a benchmark for companies to evaluate their prospects of a successful venture.