SME s are Stimulus of economical development in developing countries in the century 21.

Entrepreneurship often occurs by them; hence they have a key role in creatin g job opportunities and entrepreneurial environment and developing new business opportunities. Accordingly, nowadays in most countries some new forms of small and medium enter prises have been created that are named spin-off firms. Spin-offs are divided in to two types: University spin-offs and corporate spin-offs. Intellectual propert y of university spin-off firms belongs to university or academic institute while corporate spin-off firms are rooted from mother firm/organization (Druilhe & Ga rnsey, 2004). In 1980, in the USA the Bayh-Dole law gave permission for governmental funded re search organizations to patent their scientific results and technologies which i nvented and created by using public money. This was an important milestone, sinc e then the number of created spin-offs is multiplied. Massachusets Institute of Technology is a pioneering organization in this endeavour. It spun off averagely 25 companies each year in the 1980s. In 1996 the equity on sales of spin-off co mpanies spun off from United States universities totaled 25.3 million USD (Raday , 2006). All of these Evidences show the importance of this kind of firms at ent repreneurship growth in developing countries. But the considerable point is that except of laws and governmental policies, the re are other factors like an organization s resources, human or otherwise, dynamic a nd hostile external environments, internal organizational structure and culture that influence on developing corporate entrepreneurship (Kelley & Hayton, 2006). Leibenstein Emphasizes on financing and argues that access to capital varies in different countries. He expresses that in some countries the capacity to obtain finance may depend more on family support (Levie & Autio, 2008). In the aforementioned factors, entrepreneurial competencies have important influ ence on spin-off firms' formation. Kelley's perspective is that even when organi zations attempt to create formal structures or systems to facilitate corporate e ntrepreneurship, the role of individuals remains paramount (Kelley & Hayton, 200 6). In this study, factors affecting spin-off firm's establishment divided into two types: environmental factors and personal competencies. But the important note is that for establishing a spin-off, entrepreneur should have entrepreneurial intention; in other words personal competencies will lead t o entrepreneurial intention. Human resources are the most important capital of the firm and it is one of the most important competitive advantages of the firms and even countries. Hence the main research question is that: What impacts have entrepreneurial competencies in creating entrepreneurial intention for establishing spin-off firms in Iran an d in Denmark? Entrepreneurial competencies are the characteristics and capabilities that are c aused to creating a new business (Bird, 1995). Bartlett and Ghoshal classified t hree categories of competencies, including 1) attitudes/traits, 2) knowledge/exp erience, and 3) skills/abilities (Thomas, 2001). Other researchers have been pro posed different entrepreneurial competencies. For example Kelley and Hayton have indentified two kinds of entrepreneurial competencies: identification of entrep reneurial opportunities and the willingness to start a new venture (Kelley & Hay ton, 2006). Baron posed Self-efficacy and Perseverance as entrepreneurial compet encies (Baron & Markman, 2000). Leibenstein saw perception of opportunity as an element of entrepreneurial capac ity (competency), based on skill and knowledge: [only] those individuals who have the necessary skills to perceive entrepreneurial opportunities, to carry out the req uired input gap filling activities, and to be input-completers can be entreprene urs (Levie & Autio, 2008). New business activity takes place when those who believe they have the skills, k nowledge and motivation to start a business perceive an opportunity to do so. Te chnical business start-up skills alone are not enough; an individual must percei ve an opportunity before action can be taken (Levie & Autio, 2008). Based on GEM data 2010, the rate of opportunity reception, capability reception

and fear of failure in Iran are respectively 41.6, 65.7, and 30.1 and in Denmark are respectively 46.4, 40.7, and 31.5. According to this point that in this study the GEM data of Iran and Denmark will be used, based on Weenekers model (2006) role Models, motivation, opportunity r eception, capability reception and fear of failure are considered as personal en trepreneurial competencies. The environmental factors in this study are family s upport and firm support. In addition according to the results of world values re port (2010), Iran and Denmark have different cultures (Classic culture versus tr aditional culture). Hence national values are considered as third environmental factor (Kelley, Bosma, & Ernesto Amors, 2010). So Comparison of creating spin-off firms in Iran and Denmark is one of the main purposes of this research. For answering to the research question SEM methodolog y and Regression will be used.