Abstract
Germany creates 2.5 times of university spin-off venture businesses as the United States does. The university spin-off venture businesses include those that spin off from public research institutes. This venture business boom in the university and research institute sector is partly attributable to government efforts to establish a German model after the unification in 1990, suffering from budget problems and economic problems. This paper first presents the structure of the German Model to create university spin-off venture businesses. Then, the paper analyzes a mechanism to drive young researchers to start up a company, EXIT Program to create entrepreneurship culture, company creating companies (C3s) of universities and research institutes, technology entrepreneur centers and public matching investment. The system of cooperation among university, research institutes and industry that is the foundation of the German Model is also clarified. Finally, the implications of the German Model to Japan are summarized.
