R&D financing of start-up firms: How much does founders' human capital matter?

Yuji Honjo, 裕司 本庄, ユウジ ホンジョウ, Masatoshi Kato, 雅俊 加藤, マサトシ カトウ, Hiroyuki Okamuro, 博之 岡室 and ヒロユキ オカムロ

No 2009-15, CEI Working Paper Series from Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University

Abstract: This paper explores research and development (R&D) financing of start-up firms. Using a sample from an original survey conducted in 2008, we identify whether initial funds and founder-specific characteristics relate to R&D investment of start-up firms in Japan. It is found that internal finance is positively associated with R&D investment. It is also found that founders with higher educational background, prior innovation output and academic affiliation tend to raise more funds for R&D. On the other hand, we provide evidence that the effects of founders' human capital are mediated by investment opportunities, which would indicate that R&D investment of start-up firms depends heavily on investment opportunities.

Keywords: Founder; Human capital; Internal finance; R&D; Start-up (search for similar items in EconPapers)
JEL-codes: G30 M13 O32 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2010-03
New Economics Papers: this item is included in nep-ent, nep-ino and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hit:hitcei:2009-15

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