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Industry changes in technology and complementary assets and the creation of high-growth firms

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  • Eckhardt, Jonathan T.
  • Shane, Scott A.
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    Abstract

    This study uses employment data to examine why some industries host more new high-growth firms than others. Using a unique data base of 201 industries over a 15-year period, we find that increases in the proportion of employment of scientists and engineers in industries are positively associated with counts of fast-growing new firms; however, we do not detect a relationship between fluctuations in the proportion of employment in sales and production occupations and counts of fast-growing new firms. The findings suggest that technological innovation is an important determinant of entrepreneurial opportunity. Further, they suggest that private new firms are an important means of organizing commercial innovation and that new firms may be less constrained by complementary assets than has been previously understood.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Venturing.

    Volume (Year): 26 (2011)
    Issue (Month): 4 (July)
    Pages: 412-430

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    Handle: RePEc:eee:jbvent:v:26:y:2011:i:4:p:412-430

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    Web page: http://www.elsevier.com/locate/jbusvent

    Related research

    Keywords: Entrepreneurship Industry evolution Technological innovation Commercialization of science Human capital;

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    Cited by:
    1. Tommy Clausen & Einar Rasmussen, 2013. "Parallel business models and the innovativeness of research-based spin-off ventures," The Journal of Technology Transfer, Springer, Springer, vol. 38(6), pages 836-849, December.
    2. J.W.B. Bos & E. Stam, 2011. "Gazelles, Industry Growth and Structural Change," Working Papers, Utrecht School of Economics 11-02, Utrecht School of Economics.
    3. Tischler, Joachim, 2014. "Characteristics of technological base, pace of technological development, and growth of young technology-based firms," EconStor Preprints, ZBW - German National Library of Economics 96156, ZBW - German National Library of Economics.
    4. Neil Lee, 2014. "What holds back high-growth firms? Evidence from UK SMEs," Small Business Economics, Springer, Springer, vol. 43(1), pages 183-195, June.

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