What determines the innovation capability of firm founders?

Arvanitis, Spyridon; Stucki, Tobias

doi:10.1093/icc/dts003

Cited by 67 publications

(40 citation statements)

References 42 publications

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“…Formal education, which is the main source of general human capital (Schwerdt and Turunen, 2007), enables a person to acquire the skills necessary to identify business opportunities (Arvanitis and Stucki, 2012) and increases fir capacity through the knowledge accumulation phase (Vinding, 2006). Mangematin and Nesta (1999) argue that highly educated employees, in particular, through their daily tasks, will increase the stock of knowledge of an organisation.…”

Section: The Mediating Role Of Randd Human Capitalmentioning

confidence: 99%

Capturing value from alliance portfolio diversity: The mediating role of R&D human capital in high and low tech industries

2017

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Research has demonstrated the value of external linkages to augment in-house R&D efforts; however, very little is known about how managers can operationally leverage the potential benefits of open innovation to create an innovative edge. This paper examines the value of alliance portfolio diversity and whether R&D human capital is the pathway through which alliance portfolio diversity influences innovation novelty. We reason that the absorptive capacity of R&D human capital alliance portfolios. Using data from the Spanish Technological Innovation Panel (PITEC) for the period 2005 2012, results support the curvilinear (inverted U-shaped) association between alliance portfolio diversity and firm innovation performance reported in studies, suggesting that not only too little, but also too much alliance portfolio diversity may be detrimental to firm innovation performance. Findings emphasise the value of alliance portfolio diversity in high-technology industries to achieve explorative performance objectives, given the technological complexity, market uncertainty and the divergent skill sets required for breakthrough innovations in these sectors. Further, we find evidence that R&D human capital plays an important role in innovation novelty by partially mediating the relationship between alliance partner diversity and firm innovation performance, emphasising the importance of internal capabilities to harness external knowledge assets.This study provides valuable insights to managers aiming to increase the effectiveness of their alliance portfolios.

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Section: The Mediating Role Of Randd Human Capitalmentioning

confidence: 99%

Capturing value from alliance portfolio diversity: The mediating role of R&D human capital in high and low tech industries

2017

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“…Financial leverage and R&D intensity are determined by firm‐specific characteristics and by specifics of the entrepreneurs such as human capital variables (see, e.g., Cassar ; López‐Gracia and Sogorb‐Mira ; Shyam‐Sunder and Myers for determinants of financial leverage and Arvanitis and Stucki ; Coad and Rao ; Love and Roper ; Marvel and Lumpkin for determinants of innovation activity). We operationalize explanatory variables as follows.…”

Section: Data and Descriptive Analysesmentioning

confidence: 99%

The Interdependence of R&D Activity and Debt Financing of Young Firms

Fryges¹,

Kohn²,

Ullrich³

2015

Journal of Small Business Management

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung der KfW und des ZEW dar.Dis cus si on Papers are inten ded to make results research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the KfW and ZEW. Non-technical SummaryBusiness start-ups and young enterprises introduce new products to the market and employ new processes for production. In order to create these new products and processes, firms often engage in R&D. Since conducting R&D is an expensive task, substantial financial resources are required. However, the internal financing capacity of young firms is limited because young firms generate no or a very low sales volume in the first years succeeding market entry, and no revenue reserves from previous years are available. In the case of limited internal financing, loans can relieve financing constraints on R&D activities. The relationship between R&D activities and loan financing can also be argued to go in the opposite direction. The ability of young enterprises to tap external financing sources depends, among other things, on growth opportunities which may be generated by R&D activities. Moreover, R&D expenditures are rather allocated into intangible assets that cannot serve as collaterals. This reduces a firm's possibility of loan financing.In this paper, we explore empirically the bidirectional relationship between R&D and loan financing. We In a first step, we estimate single-equation models that explain, first, the share of loan financing and, second, firms' R&D intensity, defined as R&D expenditures over total sales. Our estimates reveal that the share of loan financing is basically determined by firm-specific variables derived from traditional theories of corporate finance like static trade-off theory or pecking order theory. Entrepreneur-specific variables only play a subordinate role for explaining the capital structure. On the contrary, both firm-specific and entrepreneur-specific variables are decisive for the level of firms' R&D intensity. In the single-equation models, we find neither an effect of R&D intensity on the share of loan financing, nor an effect in the opposite direction.In a second step, we estimate a simultaneous, two-equation model in order to account for the interdependence of R&D activity and loan financing. Our results show that the coefficient estimates for the exogenous covariates hardly differ between the single-equation models and the simultaneous, two-equation model. However, the two-equation model proves that there is in fact a significantly positive, interdependent relationship between the share of loan financing and R&D intensity. Yet unobserved random shocks are negatively correlated across the two equations...

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“…From a political standpoint, a better understanding of the innovative high-growth entrepreneur -the 'Schumpeterian entrepreneur' -can lead to more targeted efforts in promoting high-potential entrepreneurs, since 'simply encouraging more people to become entrepreneurs is not necessarily the best policy for enhancing economic growth' (Shane 2009;Arvanitis and Stucki 2012;Acs et al 2016). Much in the same way, it can be of value to practitioners such as VCs or business incubators in their efforts to scout, finance, and promote high-potential innovative start-ups.…”

Section: Introductionmentioning

confidence: 99%

The Schumpeterian entrepreneur: a review of the empirical evidence on the antecedents, behaviour and consequences of innovative entrepreneurship

Block

Fisch

Praag

2016

Industry and Innovation

265

141

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Innovative entrepreneurship is considered an important pillar for economic development and has sparked a lively discussion in academia and practice alike. Oftentimes, however, the debate is not sufficiently grounded on solid empirical evidence. The academic literature is growing but very scattered and is separated into several disciplines. We provide a summary that takes stock of the academic knowledge about innovative entrepreneurship and summarizes the evidence from 102 empirical studies published in the primary economics and management journals on the antecedents, behavior, and consequences of innovative entrepreneurship. Based on this state-of-the-art literature review, directions for future research are discussed.

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What determines the innovation capability of firm founders?

Cited by 67 publications

References 42 publications

Capturing value from alliance portfolio diversity: The mediating role of R&D human capital in high and low tech industries

Capturing value from alliance portfolio diversity: The mediating role of R&D human capital in high and low tech industries

The Interdependence of R&D Activity and Debt Financing of Young Firms

The Schumpeterian entrepreneur: a review of the empirical evidence on the antecedents, behaviour and consequences of innovative entrepreneurship

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