Int. J. Innovation and Learning, Vol. 14, Nos. 3/4, 2013 405 Copyright © 2013 Inderscience Enterprises Ltd. The creation of new technology-based firms at the Spanish public research institutions: an analysis of their financial statements David Rodeiro*, Sara Fernández, Milagros Vivel and Maria Jesús Rodríguez Faculty of Economics and Business, University of Santiago de Compostela, 15.782-Santiago de Compostela, Spain E-mail: david.rodeiro@usc.es E-mail: sara.fernandez.lopez@usc.es E-mail: mila.vivel@usc.es E-mail: mariajesus.rodriguez.gulias@usc.es *Corresponding author Abstract: Recently, several studies have suggested that spin-off firms are not the most useful of the available pathways for transferring scientific knowledge from public research institutions to industry, even in the countries where the spin-off phenomenon is more extended. This paper carries out a descriptive analysis of the financial statements of 72 new technology-based firms created by the Spanish universities and the Spanish National Research Council between the years 1998 and 2006. We find that, although public research-based spin-offs show positive asset and employment growth rates, they tend to remain relatively small and fail to generate positive returns to their investors. Several directions for redesigning spin-off policy follow from this analysis. Keywords: spin-offs; new technology-based firms; NTBFs; Spanish University System; Spanish National Research Council; CSIC; size; balance sheet; income statement; return on assets; return on equity; job creation; policy. Reference to this paper should be made as follows: Rodeiro, D., Fernández, S., Vivel, M. and Rodríguez, M.J. (2013) ‘The creation of new technology-based firms at the Spanish public research institutions: an analysis of their financial statements’, Int. J. Innovation and Learning, Vol. 14, Nos. 3/4, pp.405–421. Biographical notes: David Rodeiro joined University of Santiago de Compostela, Spain as an Associate Professor in 2009, after seven years of working as a Lecturer and Researcher. He has his PhD from the University of Santiago in 2008. His research interests are academic entrepreneurship and venture capital. He is an author and co-author of several books on entrepreneurship. He has around 20 internationally refereed papers. Recently, he has published in the journals Czech Journal of Economics and Finance, Advances in Management & Applied Economics, Revista de Economía Mundial, Journal of Enterprising Culture or Academia Revista Latinoamericana de Administración, most of them included in JCR. Sara Fernández joined University of Santiago de Compostela, Spain as an Associate Professor in 2006, after 11 years of working as a Lecturer and Researcher. She has her PhD from the University of Santiago in 2001. Her research interests are in two main areas: international finance and academic