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Disagreements and intra-industry spinoffs

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  • Klepper, Steven
  • Thompson, Peter

Abstract

A growing empirical literature on spinoff formation has begun to reveal some striking regularities about which firms are most likely to spawn spinoffs, when they are most likely to spawn them, and the relationship between the quality of the parent firm and its spinoffs. Deeper investigations into the causes of spinoffs have highlighted the importance of strategic disagreements in driving some employees to resign and found a new venture. Motivated by this literature, we construct a new theory of spinoff formation driven by strategic disagreements and explore how well it explains the emerging empirical regularities.

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Bibliographic Info

Article provided by Elsevier in its journal International Journal of Industrial Organization.

Volume (Year): 28 (2010)
Issue (Month): 5 (September)
Pages: 526-538

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Handle: RePEc:eee:indorg:v:28:y:2010:i:5:p:526-538

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Web page: http://www.elsevier.com/locate/inca/505551

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Keywords: Spinoffs Learning Strategic disagreement;

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References

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Citations

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Cited by:
  1. Shimizu, Hiroshi & Wakutsu, Naohiko, 2014. "Entrepreneurial Spin-Outs and Vanishing Technological Trajectory: Laser Diodes in the U.S. and Japan," IIR Working Paper 13-21, Institute of Innovation Research, Hitotsubashi University.
  2. Fackler, Daniel & Schnabel, Claus, 2013. "Survival of spinoffs and other startups: First evidence for the private sector in Germany, 1976-2008," Discussion Papers 84, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  3. Boyan Jovanovic & Chung-Yi Tse, 2010. "Entry and Exit Echoes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(3), pages 514-536, July.
  4. Klepper, Steven, 2010. "The origin and growth of industry clusters: The making of Silicon Valley and Detroit," Journal of Urban Economics, Elsevier, vol. 67(1), pages 15-32, January.
  5. Baltzopoulos, Apostolos & Braunerhjelm, Pontus & Tikoudis, Ioannis, 2012. "Spin-off: Individual, Firm, Industry and Regional Determinants," Working Paper Series in Economics and Institutions of Innovation 265, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  6. Marco Da Rin & Thomas F. Hellmann & Manju Puri, 2011. "A survey of venture capital research," NBER Working Papers 17523, National Bureau of Economic Research, Inc.
  7. Matt Marx & Lee Fleming, 2011. "Non-compete Agreements: Barriers to Entry…and Exit?," NBER Chapters, in: Innovation Policy and the Economy, Volume 12, pages 39-64 National Bureau of Economic Research, Inc.
  8. Fryges, Helmut & Müller, Bettina & Niefert, Michaela, 2013. "Job machine, think tank, or both: What makes corporate spinoffs different?," ZEW Discussion Papers 13-093, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  9. Steven Klepper, 2011. "Nano-economics, spinoffs, and the wealth of regions," Small Business Economics, Springer, vol. 37(2), pages 141-154, September.
  10. Alvaro Escribano & Marco S. Giarratana, 2011. "EU Patent System: to be or not to be?," Economics Working Papers we1101, Universidad Carlos III, Departamento de Economía.
  11. repec:dgr:umamet:2011034 is not listed on IDEAS
  12. Peter Thompson & Jing Chen, 2011. "Disagreements, employee spinoffs and the choice of technology," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(3), pages 455-474, July.
  13. Walter, Sascha & Heinrichs, Simon & Walter, Achim, 2013. "Hostile Parent Firms and Child Firm Performance," EconStor Preprints 68592, ZBW - German National Library of Economics.
  14. Christian Cordes & Peter J. Richerson & Georg Schwesinger, 2011. "A Corporation's Culture as an Impetus for Spinoffs and a Driving Force of Industry Evolution," Papers on Economics and Evolution 2011-11, Max Planck Institute of Economics, Evolutionary Economics Group.

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