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Outside Board Directors and Start-Up Firms’ Innovation

Author

Listed:
  • Baum, Christopher F

    (Boston College and DIW Berlin)

  • Lööf, Hans

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

  • Stephan, Andreas

    (Jönköping International Business School (JIBS) & Centre of Excellence for Science and Innovation Studies (CESIS))

  • Viklund-Ros, Ingrid

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

Abstract

We exploit increased access to detailed employer-employee data to assess whether outside board members affect innovation performance among start-up firms. Using data for all new limited companies in Sweden born during 1999–2013 which have no more then 10 employees when formed, we provide structural equation estimates that deal with the endogenous selection of board directors. Our empirical findings show that an increase in the board’s expertise, measured by the relative productivity of the firms where outsiders are employed, has a significant and positive impact on the new firm’s propensity to apply for both patents and trademarks.

Suggested Citation

  • Baum, Christopher F & Lööf, Hans & Stephan, Andreas & Viklund-Ros, Ingrid, 2018. "Outside Board Directors and Start-Up Firms’ Innovation," Working Paper Series in Economics and Institutions of Innovation 468, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0468
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    References listed on IDEAS

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    More about this item

    Keywords

    Start-ups; outside directors; innovation; patents; trademarks; productivity; endogeneity;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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