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The strategic responses of start-ups to regulatory constraints in the nascent drone market

Kristina Vaarst Andersen, Marianne Harbo Frederiksen, Mette Præst Knudsen and Anders Dahl Krabbe

Research Policy, 2020, vol. 49, issue 10

Abstract: Some start-ups treat regulatory constraints as exogenous and beyond their control, while other start-ups treat regulatory constraints as endogenous and possible to influence. However, thus far, no explanation has been offered for why start-ups differ in their responses to regulatory constraints. Based on 49 interviews with start-ups and other industry actors this paper examines start-ups’ responses to regulatory constraints in the market for drone applications. We find that variation in start-ups’ responses is instigated by start-ups’ temporal orientation. Start-ups pursuing applications targeted at present markets or future potential markets treat regulation as exogenous. In contrast, start-ups that pursue market applications bridging current and future potential markets are more likely to treat regulation as endogenous.

Keywords: M13 new firms; Start-ups, l22 firm organization and market structure, l52 industrial policy; Sectorial Planning Methods (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.respol.2020.104055

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