Does easy start-up formation hamper incumbents' R&D investment?

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5 Citations (Scopus)

Abstract

This paper investigates the implications that complementary assets needed for the formation of start-ups have on the innovative efforts of incumbent firms. In particular, we highlight a strategic incentive effect by which the innovative efforts of incumbents are decreasing in the availability of the complementary assets needed for the creation of a start-up. Furthermore, we argue that the R&D investments of incumbents are positively related to the presence of policy support to innovation, and to the firm's endowment of human capital. The empirical relevance of our theoretical hypotheses is investigated - and supported - by using firm level data.
Original languageEnglish
Pages (from-to)513-531
Number of pages19
JournalSMALL BUSINESS ECONOMICS
Volume49
DOIs
Publication statusPublished - 2017

Keywords

  • Complementary assets
  • Innovation
  • R&D
  • Start-up

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