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The strategic responses of start-ups to regulatory constraints in the nascent drone market

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  • Andersen, Kristina Vaarst
  • Frederiksen, Marianne Harbo
  • Knudsen, Mette Præst
  • Krabbe, Anders Dahl

Abstract

Some start-ups treat regulatory constraints as exogenous and beyond their control, while other start-ups treat regulatory constraints as endogenous and possible to influence. However, thus far, no explanation has been offered for why start-ups differ in their responses to regulatory constraints. Based on 49 interviews with start-ups and other industry actors this paper examines start-ups’ responses to regulatory constraints in the market for drone applications. We find that variation in start-ups’ responses is instigated by start-ups’ temporal orientation. Start-ups pursuing applications targeted at present markets or future potential markets treat regulation as exogenous. In contrast, start-ups that pursue market applications bridging current and future potential markets are more likely to treat regulation as endogenous.

Suggested Citation

  • Andersen, Kristina Vaarst & Frederiksen, Marianne Harbo & Knudsen, Mette Præst & Krabbe, Anders Dahl, 2020. "The strategic responses of start-ups to regulatory constraints in the nascent drone market," Research Policy, Elsevier, vol. 49(10).
    • Handle: RePEc:eee:respol:v:49:y:2020:i:10:s0048733320301335
    DOI: 10.1016/j.respol.2020.104055
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    Cited by:

    1. Henderson, Isaac Levi, 2022. "Aviation safety regulations for unmanned aircraft operations: Perspectives from users," Transport Policy, Elsevier, vol. 125(C), pages 192-206.
    2. Soltanzadeh, Javad & Blind, Knut & Elyasi, Mehdi, 2023. "Exploring how regulators face platform business issues in the lifecycle stages: Evidence of iranian ride-hailing platform business," Telecommunications Policy, Elsevier, vol. 47(7).
    3. Zhu, Bo & Liang, Chao & Mirza, Nawazish & Umar, Muhammad, 2023. "What drives gearing in early-stage firms? Evidence from blue economy startups," Journal of Business Research, Elsevier, vol. 161(C).
    4. Audretsch, David & Colombelli, Alessandra & Grilli, Luca & Minola, Tommaso & Rasmussen, Einar, 2020. "Innovative start-ups and policy initiatives," Research Policy, Elsevier, vol. 49(10).

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    More about this item

    Keywords

    M13 new firms; Start-ups; l22 firm organization and market structure; l52 industrial policy; Sectorial Planning Methods;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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