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R&D strategies and entrepreneurial spawning

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

Abstract

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.

Suggested Citation

  • Andersson, Martin & Baltzopoulos, Apostolos & Lööf, Hans, 2012. "R&D strategies and entrepreneurial spawning," Research Policy, Elsevier, vol. 41(1), pages 54-68.
  • Handle: RePEc:eee:respol:v:41:y:2012:i:1:p:54-68
    DOI: 10.1016/j.respol.2011.08.005
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    Cited by:

    1. Heinrichs, Simon & Walter, Sascha, 2013. "Don’t Step Into Your Parent’s Shoes – How Exploitation and Exploration Affect Spin-out Growth," EconStor Preprints 68591, ZBW - German National Library of Economics.
    2. Walter, Sascha & Heinrichs, Simon & Walter, Achim, 2013. "Hostile Parent Firms and Child Firm Performance," EconStor Preprints 68592, ZBW - German National Library of Economics.
    3. Sascha G. Walter & Simon Heinrichs & Achim Walter, 2014. "Parent hostility and spin-out performance," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 2031-2042, December.
    4. Maliranta, Mika & Nurmi, Satu, 2016. "Business Owners, Employees and Firm Performance," ETLA Working Papers 42, The Research Institute of the Finnish Economy.
    5. Sam Tavassoli & Viroj Jienwatcharamongkhol, 2016. "Survival of entrepreneurial firms: the role of agglomeration externalities," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(9-10), pages 746-767, October.
    6. Charlie Karlsson & Peter Warda, 2014. "Entrepreneurship and innovation networks," Small Business Economics, Springer, vol. 43(2), pages 393-398, August.
    7. Broström, Anders & Lööf, Hans & Nabavi, Pardis, 2016. "Inherited Advantage and Spinoff Success," Working Paper Series in Economics and Institutions of Innovation 437, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    8. Niccolò Ghio & Massimiliano Guerini & Erik Lehmann & Cristina Rossi-Lamastra, 2015. "The emergence of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 1-18, January.

    More about this item

    Keywords

    Entrepreneurship; Self-employment; R&D strategy; Innovation; New firms; Spin-off;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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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