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Industry changes in technology and complementary assets and the creation of high-growth firms

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  • Eckhardt, Jonathan T.
  • Shane, Scott A.

Abstract

This study uses employment data to examine why some industries host more new high-growth firms than others. Using a unique data base of 201 industries over a 15-year period, we find that increases in the proportion of employment of scientists and engineers in industries are positively associated with counts of fast-growing new firms; however, we do not detect a relationship between fluctuations in the proportion of employment in sales and production occupations and counts of fast-growing new firms. The findings suggest that technological innovation is an important determinant of entrepreneurial opportunity. Further, they suggest that private new firms are an important means of organizing commercial innovation and that new firms may be less constrained by complementary assets than has been previously understood.

Suggested Citation

  • Eckhardt, Jonathan T. & Shane, Scott A., 2011. "Industry changes in technology and complementary assets and the creation of high-growth firms," Journal of Business Venturing, Elsevier, vol. 26(4), pages 412-430, July.
  • Handle: RePEc:eee:jbvent:v:26:y:2011:i:4:p:412-430
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    Citations

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    Cited by:

    1. Bos Jaap W.B. & Stam Erik, 2011. "Gazelles, Industry Growth and Structural Change," Research Memorandum 018, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    2. repec:spr:intemj:v:13:y:2017:i:4:d:10.1007_s11365-017-0443-x is not listed on IDEAS
    3. Sven-Olov Daunfeldt & Niklas Elert & Dan Johansson, 2016. "Are high-growth firms overrepresented in high-tech industries?," Industrial and Corporate Change, Oxford University Press, vol. 25(1), pages 1-21.
    4. Neil Lee, 2014. "What holds back high-growth firms? Evidence from UK SMEs," Small Business Economics, Springer, vol. 43(1), pages 183-195, June.
    5. Fredriksen, Lars & Wennberg, Karl & Balachandran, Chanchal, 2015. "Mobility and Entrepreneurship: Evaluating the scope of knowledge-based theories of entrepreneurship," Ratio Working Papers 266, The Ratio Institute.
    6. Tischler, Joachim, 2014. "Characteristics of technological base, pace of technological development, and growth of young technology-based firms," EconStor Preprints 96156, ZBW - German National Library of Economics.
    7. Tommy Clausen & Einar Rasmussen, 2013. "Parallel business models and the innovativeness of research-based spin-off ventures," The Journal of Technology Transfer, Springer, vol. 38(6), pages 836-849, December.
    8. repec:kap:sbusec:v:49:y:2017:i:1:d:10.1007_s11187-017-9870-x is not listed on IDEAS
    9. Moutinho, Ricardo & Au-Yong-Oliveira, Manuel & Coelho, Arnaldo & Manso, José Pires, 2015. "Beyond the “Innovation's Black-Box”: Translating R&D outlays into employment and economic growth," Socio-Economic Planning Sciences, Elsevier, vol. 50(C), pages 45-58.
    10. Jaap W. B. Bos & Erik Stam, 2014. "Gazelles and industry growth: a study of young high-growth firms in The Netherlands," Industrial and Corporate Change, Oxford University Press, vol. 23(1), pages 145-169, February.
    11. Teresa Krasnicka & Wojciech Glod, 2016. "Determinants of High-Growth Enterprises in Poland (Determinanty szybkiego wzrostu przedsiebiorstw w Polsce)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 14(62), pages 49-67.

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