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Technology entrepreneurship, ethnicity, and success

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  • Gavious, Ilanit
  • Milo, Orit

Abstract

Using a unique dataset of 1,013 new technology projects, we examine the association between ethnic heterogeneity in high-tech entrepreneurship and success. Our focus is on the main challenge facing new technology ventures—commercializing the newly developed product for acceptance in the mainstream market. Our findings establish a positive link between the presence of foreign-born members on the project teams and commercial success. A by-industry analysis reveals that the effect of ethnicity differs among industries. Specifically, the effect ranges from an over 40% increase in the odds of success (in the communications industry) to a non-significant effect (in the life sciences).

Suggested Citation

  • Gavious, Ilanit & Milo, Orit, 2020. "Technology entrepreneurship, ethnicity, and success," Finance Research Letters, Elsevier, vol. 37(C).
    • Handle: RePEc:eee:finlet:v:37:y:2020:i:c:s1544612319306397
    DOI: 10.1016/j.frl.2019.101373
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    References listed on IDEAS

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    4. Chaganti, Rajeswararao (Raj) S. & Watts, Allison D. & Chaganti, Radha & Zimmerman-Treichel, Monica, 2008. "Ethnic-immigrants in founding teams: Effects on prospector strategy and performance in new Internet ventures," Journal of Business Venturing, Elsevier, vol. 23(1), pages 113-139, January.
    5. Callen, Jeffrey L. & Gavious, Ilanit & Segal, Dan, 2010. "The complementary relationship between financial and non-financial information in the biotechnology industry and the degree of investor sophistication," Journal of Contemporary Accounting and Economics, Elsevier, vol. 6(2), pages 61-76.
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    More about this item

    Keywords

    Ethnic diversity; Ethnic heterogeneity; High-technology; R&D project; Success factors; Technology entrepreneurship;
    All these keywords.

    JEL classification:

    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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