Does Easy Start-Up Formation Hamper Incumbents' R&D Investment? A Theoretical and Empirical Analysis
Luca Colombo,
Herbert Dawid (),
Mariacristina Piva and
Marco Vivarelli ()
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Herbert Dawid: University of Bielefeld
No 7302, IZA Discussion Papers from Institute of Labor Economics (IZA)
Abstract:
This paper investigates, both theoretically and empirically, the implications that complementary assets needed for the formation of start-ups – proxied by the ease of access to financial resources – have on the innovative efforts of incumbent firms. In particular, we develop a theoretical model, highlighting a strategic incentive effect by which the innovative efforts of incumbent firms are decreasing in the availability of the complementary assets needed for the creation of a start- up. The empirical relevance of this effect is investigated by using firm level data drawn from the third Italian Community Innovation Survey covering the period 1998-2000. The results of our empirical analysis support our theory-based insights.
Keywords: R&D; innovation; start-up; complementary assets (search for similar items in EconPapers)
JEL-codes: L26 O31 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2013-03
New Economics Papers: this item is included in nep-com, nep-cse, nep-ent, nep-ino, nep-sbm and nep-tid
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Citations: View citations in EconPapers (1)
Published - published in: Small Business Economics, 2017, 49, 513-531.
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