This study investigates the spinout performance difference depending on industry origin. It is suggested that there can be two possible types of spinouts: horizontal spinout (spinout located in same industry with parent) and vertical spinout (spinout located in difference industry from parent). It is posited that two different types of spinouts will have different performance implication because of different usage of background knowledge and different relationship with parent firm. From the unique dataset, it is found that the vertical spinout will survive longer than horizontal spinout, which implies higher performance of vertical spinout than horizontal spinout. This research contributes to the spinout literature in that it highlights the importance of specifying two different types of spinouts. Also, it offers the evidence that there is different performance implication of spinouts depending on where they are originated from.