Venture Capitalists and Cooperative Start-up Commercialization Strategy

David H. Hsu ()
Additional contact information
David H. Hsu: Management Department, The Wharton School, University of Pennsylvania, 2000 Steinberg Hall-Dietrich Hall, Philadelphia, Pennsylvania 19104

Management Science, 2006, vol. 52, issue 2, 204-219

Abstract: This paper examines the possible impact of venture capital (VC) backing on the commercialization direction of technology-based start-ups by asking: To what extent (if at all) do VC-funded start-ups engage in cooperative commercialization strategies (strategic alliances or technology licensing, or both) relative to a comparable set of start-ups, and with what consequences? To address these questions, I assemble a novel data set that matches firms receiving a federal research and development subsidy through the U.S. Small Business Innovative Research program to VC-funded firms by observable characteristics in five technology-intensive industries. These data allow decoupling of cooperative activity resulting from start-up development via the passage of calendar time from that due to association with VCs. An analysis of the 696 start-ups in the sample (split by an external funding source) suggests substantial boosts in both cooperative activity associated with VC-backed firms and in the likelihood of an initial public offering.

Keywords: entrepreneurial ventures; venture capital; cooperation; commercialization strategy; strategic alliances; initial public offerings (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (149)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.1050.0480 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:52:y:2006:i:2:p:204-219

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().