Johann Landsberg, Gretha Duvenage
Abstract
This article explores the structural barriers impeding the success of spin-out companies at South African universities, which are increasingly recognised as drivers of innovation and economic development. In spite of global examples where academic spinouts thrive due to robust institutional support and mature venture ecosystems, South African universities face relentless obstacles, including underdeveloped venture capital markets, bureaucratic inefficiencies within technology transfer offices (TTOs), fragmented regulatory frameworks, and an established academic culture that prioritises scholarly outputs over entrepreneurial activity. The study utilises a qualitative, exploratory research design, drawing on semi-structured interviews with TTO professionals, academic researchers, and commercialisation experts to identify and analyse these barriers. Key findings highlight five critical challenges: financial constraints, limited digital transformation (particularly slow adoption of AI), leadership and organisational culture misalignment, regulatory complexity, and insufficient alignment with the United Nations Sustainable Development Goals (SDGs). The article deduces that overcoming these barriers requires strategic leadership, enhanced digital adoption, targeted training in academic entrepreneurship, streamlined regulatory processes, and the integration of SDG-focused strategies to attract impact investment. Addressing these challenges will enable South African universities to create a more supportive environment for spinouts, fostering innovation, economic growth, and societal impact.