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Licence or spin-off? Three decisive questions
22 Apr 2026 · 6 min read
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Licence or spin-off? Three decisive questions
A simple framework for inventors weighing up their commercialisation route.
The first question concerns market readiness: is there already someone willing to pay, and how much effort is needed to reach the first customer.
The second question concerns the inventor's role: is there a team member willing and able to run the business full-time.
The third question concerns industry structure: when production and distribution capacity is already controlled by established players, licensing usually delivers impact faster than starting a new business.
KEY POINTS
Market readiness determines the urgency of the pathway
A spin-off requires willingness to run day-to-day operations
Industry structure determines the choice between licensing and spin-off