The Evolution of the Spin-off Relationship into a Partnership in Light of Innovation

Abstract

This study aims to provide a comprehensive and precise explanation of the spin-off mechanism by addressing the most important concepts, forms, models, and core stages of this type of industrial partnership relationship. It also analyzes the capacity of spin-off and subcontracting small enterprises to innovate in products and processes—an ability that enables the parent or contracting firm to create added competitive value in the market. On the other hand, it allows the subcontracting spin-off firm to establish a long-term open partnership relationship. Finally, we propose a conceptual model for the transformation of the subcontracting relationship into a partnership based on innovation.