IDEAS home Printed from https://ideas.repec.org/p/vlg/vlgwps/2004-04.html
   My bibliography  Save this paper

Do intangible assets and pre-founding R&D efforts matter for innovation speed in start-ups?

Author

Listed:
  • Ans Heirman

    ()

  • Bart Clarysse

    () (Vlerick Leuven Gent Management School)

Abstract

The launch of the first product is an important event for start-ups, because it takes the new venture closer to growth, profitability and financial independence. However, entrepreneurship literature lacks theory and data on new product development and innovation speed. Integrating insights form new product development literature with resource-based theory, we construct a conceptual framework concerning the antecedents of innovation speed in start-ups. In particular, we argue that pre-founding R&D efforts and intangible assets such as team tenure, experience of founders, and collaborations with third parties are important for innovation speed. We collected a unique dataset on 99 research-based start-ups (RBSUs) and use an event-history approach to test our model. We find that RBSUs differ significantly in their starting conditions and that these differences have a significant effect on the time it takes to launch the first product. The impact of starting conditions on innovation speed differs however between software, medical-related, telecom and other technologies. Although intuition suggests that start-ups that are further in the product development cycle at founding launch their first product faster, we find that software firms starting with a beta-version experience slower product launch. Next, it is shown that team tenure and experience of founders leads to faster product launch. Contrary to expectations, alliances with other firms do not significantly affect innovation speed and collaborations with universities lead to longer development times. The insights of this study enhance our understanding of product development processes in start-ups and the differences between slow growers and fast growers.

Suggested Citation

  • Ans Heirman & Bart Clarysse, 2004. "Do intangible assets and pre-founding R&D efforts matter for innovation speed in start-ups?," Vlerick Leuven Gent Management School Working Paper Series 2004-04, Vlerick Leuven Gent Management School.
  • Handle: RePEc:vlg:vlgwps:2004-04
    as

    Download full text from publisher

    File URL: http://www.vlerick.be/en/2692-VLK/version/default/part/AttachmentData/data/vlgms-wp-2004-04.pdf
    Download Restriction: no

    More about this item

    Keywords

    Intangible assets; New Product Development and Start-Ups;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vlg:vlgwps:2004-04. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Isabelle Vandenbroere). General contact details of provider: http://edirc.repec.org/data/vlgmsbe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.