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Employment growth from the Small Business Innovation Research program

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  • Albert Link

    ()

  • John Scott

    ()

Abstract

This paper investigates employment growth in small firms funded by the U.S. Small Business Innovation Research (SBIR) program. Using data collected by the National Research Council for each of five federal agencies, our analysis shows that on average over two-fifths of all projects retained 0 employees after completion and over one-third retained only 1 or 2 employees. Thus, on average, the direct impact of SBIR funded projects on employment is small, especially when compared to the mean number of employees in the firms. However, there are substantial cross-project differences in the number of retained employees that are explained by differences in the firms and their SBIR projects. We find across funding agencies that projects with intellectual property—patents, copyrights, trademarks, or publications—retained more employees after completion of the project. Also, we find that the public funding of research by the SBIR program is more likely to stimulate employment when the government created a market for the products, processes, or services developed by the research projects.

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File URL: http://hdl.handle.net/10.1007/s11187-010-9303-6
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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 39 (2012)
Issue (Month): 2 (September)
Pages: 265-287

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Handle: RePEc:kap:sbusec:v:39:y:2012:i:2:p:265-287

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Web page: http://www.springerlink.com/link.asp?id=100338

Related research

Keywords: Small business research; Employment growth; Entrepreneurship; Intellectual property; L53; J48; O38; L26;

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References

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  1. Audretsch, David B. & Link, Albert N. & Scott, John T., 2002. "Public/private technology partnerships: evaluating SBIR-supported research," Research Policy, Elsevier, vol. 31(1), pages 145-158, January.
  2. Gregory Tassey, 2007. "Tax incentives for innovation: time to restructure the R&E tax credit," The Journal of Technology Transfer, Springer, vol. 32(6), pages 605-615, December.
  3. Robert Atkinson, 2007. "Expanding the R&E tax credit to drive innovation, competitiveness and prosperity," The Journal of Technology Transfer, Springer, vol. 32(6), pages 617-628, December.
  4. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. " Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, vol. 8(4), pages 297-315, August.
  5. Ashley J. Stevens, 2004. "The Enactment of Bayh--Dole," The Journal of Technology Transfer, Springer, vol. 29(1), pages 93-99, 01.
  6. Link, Albert N. & Scott, John T., 2010. "Government as entrepreneur: Evaluating the commercialization success of SBIR projects," Research Policy, Elsevier, vol. 39(5), pages 589-601, June.
  7. David Audretsch & Roy Thurik, 2004. "A Model of the Entrepreneurial Economy," Papers on Entrepreneurship, Growth and Public Policy 2004-12, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  8. Albert N. Link & John T. Scott, 2009. "Private Investor Participation and Commercialization Rates for Government-sponsored Research and Development: Would a Prediction Market Improve the Performance of the SBIR Programme?," Economica, London School of Economics and Political Science, vol. 76(302), pages 264-281, 04.
  9. Josh Lerner, 2010. "The future of public efforts to boost entrepreneurship and venture capital," Small Business Economics, Springer, vol. 35(3), pages 255-264, October.
  10. Lerner, Josh, 1999. "The Government as Venture Capitalist: The Long-Run Impact of the SBIR Program," The Journal of Business, University of Chicago Press, vol. 72(3), pages 285-318, July.
  11. Carlsson, Bo, 1992. "The Rise of Small Business: Causes and Consequences," Working Paper Series 357, Research Institute of Industrial Economics.
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Cited by:
  1. Schneck, Stefan & May-Strobl, Eva, 2014. "The economic contribution of start-up firms in Germany," Working Papers 02/14, Institut für Mittelstandsforschung (IfM) Bonn.
  2. Helge Dauchert & Dietmar Harhoff & Patrick Llerena & Wolfgang Crasemann & Carla Dekker & Oliver Falck & Simon Wiederhold & Ludger Wößmann, 2013. "Innovationen auf Bestellung? Was von einer stärkeren Nachfrageorientierung in der Innovationspolitik zu halten ist," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(05), pages 03-19, 03.

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