Are R&D investments by incumbents decreasing in the availability of complementary assets for start-ups?

Luca Stanca, Herbert Dawid, Mariacristina Piva and Marco Vivarelli ()

LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy

Abstract: This paper investigates, both theoretically and empirically, the implications that complementary assets needed for the formation of start-ups -proxied by the ease of access to financial resources- have on the innovative efforts of incumbent firms. In particular, we develop a theoretical model, highlighting a strategic incentive effect by which the innovative efforts of incumbent firms are decreasing in the availability of the complementary assets needed for the creation of a startup. The empirical relevance of this effect is investigated by using firm level data drawn from the third Italian Community Innovation Survey covering the period 1998-2000. The results of our empirical analysis support our theory-based insights.

Keywords: R&D; Innovation; Start-up; Complementary Assets (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-com, nep-cse, nep-ent, nep-ino, nep-sbm and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:ssa:lemwps:2015/12

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