Does easy start-up formation hamper incumbents' R&D investment? A theoretical and empirical analysis

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 7302

Classification and Topics

• Classification: Wirtschaft ; Innovation and Invention: Processes and Incentives ; Entrepreneurship
• Subject: R&D ; innovation ; start-up ; complementary assets

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Colombo, Luca ; Dawid, Herbert ; Piva, Mariacristina ; Vivarelli, Marco
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/71743
• Last update: 10.03.2025, 11:44 AM CET