Technology entrepreneurship, ethnicity, and success

Ilanit Gavious and Orit Milo

Finance Research Letters, 2020, vol. 37, issue C

Abstract: Using a unique dataset of 1,013 new technology projects, we examine the association between ethnic heterogeneity in high-tech entrepreneurship and success. Our focus is on the main challenge facing new technology ventures—commercializing the newly developed product for acceptance in the mainstream market. Our findings establish a positive link between the presence of foreign-born members on the project teams and commercial success. A by-industry analysis reveals that the effect of ethnicity differs among industries. Specifically, the effect ranges from an over 40% increase in the odds of success (in the communications industry) to a non-significant effect (in the life sciences).

Keywords: Ethnic diversity; Ethnic heterogeneity; High-technology; R&D project; Success factors; Technology entrepreneurship (search for similar items in EconPapers)
JEL-codes: M2 M3 O3 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:37:y:2020:i:c:s1544612319306397

DOI: 10.1016/j.frl.2019.101373

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