Does the intensity in R&D generate start-up’s growth?

Ferran Vendrell Herrero () and José Luis González Pernía ()
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Ferran Vendrell Herrero: Orkestra - Basque Institute of Competitiveness
José Luis González Pernía: Orkestra - Basque Institute of Competitiveness

No 2010R05, Working Papers from Orkestra - Basque Institute of Competitiveness

Abstract: Existing literature is not conclusive regarding the effect that R&D activities exert on a firm’s performance and growth. Furthermore, this issue is unexplored in the literature stream of new venture growth. We shed light on this issue by proposing a mediation model. Building on previous literature, we predict that R&D intensity indirectly and positively affects the growth of new ventures through the mediation of patents. The analysis is conducted from primary survey data which contains information for 87 new ventures belonging to the Basque innovation ecosystem. According to the results, patents significantly and positively mediate the relation between R&D intensity and new venture growth.

Date: 2010-09-20
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