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Patenting and Entrepreneurial Spawning: An Innovation Strategy Approach

Author

Listed:
  • Lööf, Hans

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Nabavi, Pardis

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Bazzazian, Navid

    (Strategy and Business Policy, HEC, Paris)

Abstract

This paper analyzes how different innovation-strategies of incumbent firms affect the quality of their entrepreneurial spawns. Using a novel data set that combines employer-employee micro data from Sweden with firm level patent application data files for the period 1997-2008, three types of incumbent firms are distinguished: firms that are engaged in innovation activities persistently, occasionally and not at all. The analysis shows only weak indication that the chance of survival for a new firm can be linked back to the innovation strategy of the parent firm. In contrast, there is strong evidence that employee start-ups from persistent innovators are more productive during their first five years on the market than other spin-offs, everything else equal.

Suggested Citation

  • Lööf, Hans & Nabavi, Pardis & Bazzazian, Navid, 2012. "Patenting and Entrepreneurial Spawning: An Innovation Strategy Approach," Working Paper Series in Economics and Institutions of Innovation 282, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies, revised 14 Dec 2012.
    • Handle: RePEc:hhs:cesisp:0282
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    More about this item

    Keywords

    Innovation; Patent; Spinoff; Survival; Productivity;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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