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Does Academic Entrepreneurship Pay?

  • Astebro , Thomas B.


  • Braunerhjelm, Pontus


  • Broström , Anders


We investigate the private returns for academics that start new businesses. Total earnings for the universe of 478 individuals working at Swedish universities who quit to become full-time entrepreneurs between 1999 and 2008 are compiled. To the best of our knowledge, this is the first analysis to include capital gains. Entrepreneurship for academics appears a gradual process and quite episodic. Earnings are similar before and after becoming an entrepreneur and dividends and capital gains are inconsequential. But the income risk is more than three times higher in entrepreneurship.

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Paper provided by HEC Paris in its series Les Cahiers de Recherche with number 970.

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Length: 47 pages
Date of creation: 23 Nov 2012
Date of revision:
Handle: RePEc:ebg:heccah:0970
Contact details of provider: Postal: HEC Paris, 78351 Jouy-en-Josas cedex, France
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  1. Giuri, Paola & Mariani, Myriam & Brusoni, Stefano & Crespi, Gustavo & Francoz, Dominique & Gambardella, Alfonso & Garcia-Fontes, Walter & Geuna, Aldo & Gonzales, Raul & Harhoff, Dietmar & Hoisl, Karin, 2007. "Inventors and invention processes in Europe: Results from the PatVal-EU survey," Research Policy, Elsevier, vol. 36(8), pages 1107-1127, October.
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  4. Edmark, Karin & Gordon, Roger, 2012. "The Choice of Organizational Form by Closely-Held Firms in Sweden: Tax vs. Non-Tax Determinants," Working Papers 2012:15, Swedish Entrepreneurship Forum.
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  7. Scott Stern, 2004. "Do Scientists Pay to Be Scientists?," Management Science, INFORMS, vol. 50(6), pages 835-853, June.
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  18. Tino Sanandaji & Peter T. Leeson, 2013. "Billionaires," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 313-337, February.
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