Does the Timing of integrating new Skills affect Start-up Growth?

Markus Grillitsch and Torben Schubert ()
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Torben Schubert: CIRCLE, Lund University, Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden

No 2020/9, Papers in Innovation Studies from Lund University, CIRCLE - Centre for Innovation Research

Abstract: Growth often requires start-ups to recruit new skills not present in the founding team. We analyze if the relationship between integrating new skills and growth depends on timing. Should new skills be recruited as early as possible, or can start-ups add them as needed along the way? Using a unique panel dataset covering Sweden’s population of start-ups from 1997-2012, our analysis shows that i) start-ups grow faster if they integrate novel skills early in their life, while adding novel skills later reduces growth, and ii) corporate spin-offs profit less from recruiting novel skills than de novo start-ups. We mirror our results against existing theories and develop theoretical perspectives for future research.

Keywords: start-ups; growth; spin-offs; time/temporal aspects; venture teams (search for similar items in EconPapers)
JEL-codes: M13 M51 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2020-10-28
New Economics Papers: this item is included in nep-cse and nep-ent
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:lucirc:2020_009

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