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R&D strategies and entrepreneurial spawning

  • Andersson, Martin
  • Baltzopoulos, Apostolos
  • Lööf, Hans

This paper analyzes how different R&D strategies of incumbent firms affect the quantity and quality of their entrepreneurial spawning. When examining entrepreneurial ventures of ex-employees of firms with different R&D strategies, three things emerge: First, firms with persistent R&D investments and a general superiority in sales, exports, productivity, profitability and wages are less likely to generate entrepreneurs than firms with temporary or no R&D investments. Second, start-ups from knowledge intensive business service (KIBS) firms with persistent R&D investments have a significantly increased probability of survival. No corresponding association between the R&D strategies of incumbents and survival of entrepreneurial spawns is found for incumbents in manufacturing sectors. Third, spin-outs from KIBS-firms are more likely to survive if they start in the same sector, indicating the importance of inherited knowledge. These findings suggest that R&D intensive firms are less likely to generate employee start-ups, but their entrepreneurial spawns tend to be of higher quality.

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Article provided by Elsevier in its journal Research Policy.

Volume (Year): 41 (2012)
Issue (Month): 1 ()
Pages: 54-68

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Handle: RePEc:eee:respol:v:41:y:2012:i:1:p:54-68
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