Determinants of young firms’ innovative performance: Empirical evidence from Europe

•The study investigates the impact of diverse factors on young firms’ innovation.•Founders’ human capital is a critical determinant of innovative performance.•External knowledge sources are important to young firms’ innovation. This paper explores the effect of diverse firm resources and competences...

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Published inResearch policy Vol. 46; no. 7; pp. 1312 - 1326
Main Authors Protogerou, Aimilia, Caloghirou, Yannis, Vonortas, Nicholas S.
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.09.2017
Subjects
External knowledge sources
Human capital
Innovative performance
Young firms
Young firms
Innovative performance
Human capital
External knowledge sources
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Abstract •The study investigates the impact of diverse factors on young firms’ innovation.•Founders’ human capital is a critical determinant of innovative performance.•External knowledge sources are important to young firms’ innovation. This paper explores the effect of diverse firm resources and competences such as founders’ human capital, workforce human capital and acquisition of knowledge from external sources on the innovation performance of young firms. The empirical analysis is based on data from a rich European survey that examined small firms between three and ten years of age across a wide industrial spectrum of knowledge-intensive services and manufacturing sectors in ten countries. The study provides evidence that aspects of both internal factors, especially those encapsulated in the human capital of founders such as prior exposure to R&D, team functional diversity and educational background, and external firm characteristics, such as technology collaborations and networking with universities are important in explaining young firms’ innovative activity.
AbstractList •The study investigates the impact of diverse factors on young firms’ innovation.•Founders’ human capital is a critical determinant of innovative performance.•External knowledge sources are important to young firms’ innovation. This paper explores the effect of diverse firm resources and competences such as founders’ human capital, workforce human capital and acquisition of knowledge from external sources on the innovation performance of young firms. The empirical analysis is based on data from a rich European survey that examined small firms between three and ten years of age across a wide industrial spectrum of knowledge-intensive services and manufacturing sectors in ten countries. The study provides evidence that aspects of both internal factors, especially those encapsulated in the human capital of founders such as prior exposure to R&D, team functional diversity and educational background, and external firm characteristics, such as technology collaborations and networking with universities are important in explaining young firms’ innovative activity.
Author Caloghirou, Yannis
Vonortas, Nicholas S.
Protogerou, Aimilia
Author_xml – sequence: 1
  givenname: Aimilia
  surname: Protogerou
  fullname: Protogerou, Aimilia
  email: protoger@chemeng.ntua.gr
  organization: Laboratory of Industrial and Energy Economics, National Technical University of Athens, Greece
– sequence: 2
  givenname: Yannis
  surname: Caloghirou
  fullname: Caloghirou, Yannis
  organization: Laboratory of Industrial and Energy Economics, National Technical University of Athens, Greece
– sequence: 3
  givenname: Nicholas S.
  surname: Vonortas
  fullname: Vonortas, Nicholas S.
  organization: Institute for International Science Technology Policy & Department of Economics, The George Washington University, USA
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Snippet •The study investigates the impact of diverse factors on young firms’ innovation.•Founders’ human capital is a critical determinant of innovative...
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SubjectTerms External knowledge sources
Human capital
Innovative performance
Young firms
Title Determinants of young firms’ innovative performance: Empirical evidence from Europe
URI https://dx.doi.org/10.1016/j.respol.2017.05.011
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