Does founders’ human capital matter for innovation? Evidence from Japanese start-ups

Masatoshi Kato, Hiroyuki Okamuro and Yuji Honjo
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Yuji Honjo: Faculty of Commerce, Chuo University

No 78, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: Using a sample from an original questionnaire survey in Japan, this paper explores whether and how founders’ human capital affects innovation outcomes by start-ups. The results provide evidence that founders with greater human capital are more likely to yield innovation outcome. However, because certain types of founders’ human capital may boost R&D investment, which possibly results in innovation outcomes, we estimate the determinants of innovation outcomes by an instrumental variable probit model taking into account the endogeneity of R&D investment. Our findings suggest that specific human capital for innovation, such as founders’ prior innovation experience, is directly associated with innovation outcomes after start-up, while generic human capital, such as founders’ educational background, indirectly affects innovation outcomes through R&D investment.

Keywords: Founder; Human capital; Innovations; R&D investment (search for similar items in EconPapers)
JEL-codes: L24 M13 O31 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2011-12, Revised 2011-12
New Economics Papers: this item is included in nep-ent, nep-hrm, nep-ino, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://192.218.163.163/RePEc/pdf/kgdp78.pdf First version, 2011 (application/pdf)

Related works:
Journal Article: Does Founders' Human Capital Matter for Innovation? Evidence from Japanese Start‐ups (2015)
Working Paper: Does Founders’ Human Capital Matter for Innovation? Evidence from Japanese Start-ups (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:78

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