Outside Board Directors and Start-Up Firms’ Innovation

Christopher Baum, Hans Lööf (hans.loof@indek.kth.se), Andreas Stephan and Ingrid Viklund-Ros (ingrid.ros@indek.kth.se)
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Ingrid Viklund-Ros: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology

No 468, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: We exploit increased access to detailed employer-employee data to assess whether outside board members affect innovation performance among start-up firms. Using data for all new limited companies in Sweden born during 1999–2013 which have no more then 10 employees when formed, we provide structural equation estimates that deal with the endogenous selection of board directors. Our empirical findings show that an increase in the board’s expertise, measured by the relative productivity of the firms where outsiders are employed, has a significant and positive impact on the new firm’s propensity to apply for both patents and trademarks.

Keywords: Start-ups; outside directors; innovation; patents; trademarks; productivity; endogeneity (search for similar items in EconPapers)
JEL-codes: D24 O33 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2018-06-01
New Economics Papers: this item is included in nep-bec, nep-eff, nep-ent, nep-ino, nep-sbm and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:cesisp:0468

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