Science-Based Business : Knowledge Capital or Entrepreneurial Ability? : Theory and Evidence from a Survey of Biotechnology Start-ups
AbstractWe present a model of science-based entrepreneurship where ideas initially produced by researchers with high-level knowledge capital may be developed by high-ability entrepreneurs. With moderate investment costs, startups continuously managed by inventors-founders coexist in equilibrium with startups that experience entrepreneurial turnover. The model predicts that startups managed by non-founder entrepreneurs would on average outperform the startups managed by their founders and that better functioning of the market for entrepreneurial talent should result in more entrepreneurial turnover in equilibrium which in its turn leads to more ideas being commercialized and higher rewards to successful startups. The predictions of the model are tested against a unique dataset drawing upon a representative sample of biotechnology startups in Japan and are found to be broadly supported in the data.
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Bibliographic InfoPaper provided by Institute of Innovation Research, Hitotsubashi University in its series IIR Working Paper with number 10-05.
Length: 49 p.
Date of creation: Sep 2010
Date of revision:
Science-based Business; Biotechnology; Start-ups; Entrepreneurship; Innovation;
Other versions of this item:
- Yuji Honjo & Sadao Nagaoka & Kenta Nakamura & Serguey Braguinsky, 2011. "Science-Based Business: Knowledge Capital or Entrepreneurial Ability? Theory and Evidence from a Survey of Biotechnology Start-ups," 2011 Meeting Papers 1270, Society for Economic Dynamics.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-11 (All new papers)
- NEP-CSE-2010-09-11 (Economics of Strategic Management)
- NEP-ENT-2010-09-11 (Entrepreneurship)
- NEP-INO-2010-09-11 (Innovation)
- NEP-KNM-2010-09-11 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2010-09-11 (Small Business Management)
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