R&D Strategies and Entrepreneurial Spawning

Martin Andersson, Apostolos Baltzopoulos (apobal@kth.se) and Hans Lööf (hans.loof@indek.kth.se)
Additional contact information
Apostolos Baltzopoulos: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden

No 228, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: This paper analyzes how different R&D strategies of incumbent firms affect the quantity and quality of their entrepreneurial spawning. By examining entrepreneurial ventures of ex-employees of firms with different R&D strategies three things emerge: First, firms with persistent R&D investments with a general superiority in sales, exports, productivity, profitability and wages are less likely to generate entrepreneurs than firm 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 firm, indicating the importance of inherited related knowledge. The findings suggest that R&D intensive firms spur fewer entrepreneurs, but their entrepreneurial spawns tend to be of higher quality.

Keywords: entrepreneurship; self-employment; R&D strategy; innovation; new firms; spin-off; spin-out (search for similar items in EconPapers)
JEL-codes: J24 L26 M13 O31 O32 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2010-04-14
New Economics Papers: this item is included in nep-cse, nep-ent, nep-ino, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: R&D strategies and entrepreneurial spawning (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:cesisp:0228

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