Entrepreneurial Spillovers from Corporate R&D

Tania Babina and Sabrina T. Howell

No 25360, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper studies how corporate research and development (R&D) investment affects labor mobility. We use employer-employee matched data in ordinary least squares and instrumental variables analyses to assess four hypotheses. R&D has no effect on worker retention, exit from employment, or mobility to incumbent firms. Instead, it increases employee departures to entrepreneurship, leading employees to join the founding teams of startups that are venture capital-backed, high tech, high wage, and in different sectors than the parent firm. These high-growth, high-risk startups emerging from R&D benefit from a focused, standalone incentive structure and have poor complementarities to the parent firm’s assets.

JEL-codes: G3 O3 (search for similar items in EconPapers)
Date: 2018-12
New Economics Papers: this item is included in nep-ent, nep-ino, nep-lab, nep-net and nep-sbm
Note: CF PR
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Citations: View citations in EconPapers (10)

Published as Tania Babina & Sabrina T. Howell, 2024. "Entrepreneurial Spillovers from Corporate R&D," Journal of Labor Economics, vol 42(2), pages 469-509.

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