References (43)



Business Partners, Financing, and the Commercialization of Inventions

Thomas B. Astebro

HEC Paris - Strategy & Business Policy

Carlos J. Serrano

Universitat Pompeu Fabra, Barcelona GSE; Bank of Spain - Research Department; University of Toronto - Rotman School of Management, RIIB; National Bureau of Economic Research (NBER)

March 2014

This paper studies the effect of business partners on the commercialization of invention-based ventures, and it assesses the relative importance of the complementary skills, contacts, and financial capital that these partners may add to the original inventor-entrepreneur. Projects run by partnerships were five times as likely to reach commercialization as those without partnerships, and they had mean revenues approximately ten times as great as projects run by solo entrepreneurs. These gross differences may be due both to partners impacting business success that is, who the particular partners were, and to selection of the type of project or of whom to select as a partner. After controlling for selection effects and observed/unobserved heterogeneity, the smallest estimate of partners’ skills and contacts approximately doubles the probability of commercialization and increases expected revenues by 29% at the sample mean. Our findings suggest that a critical policy option to increase commercialization rates and revenues for early-stage businesses is to support the market for finding skilled partners.

Number of Pages in PDF File: 43

Keywords: Entrepreneurship, Business Partners, Entrepreneurial finance

JEL Classification: M13, G24, O31, J24

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Date posted: June 24, 2011 ; Last revised: June 17, 2014

Suggested Citation

Astebro, Thomas B. and Serrano, Carlos J., Business Partners, Financing, and the Commercialization of Inventions (March 2014). Available at SSRN: http://ssrn.com/abstract=1871687 or http://dx.doi.org/10.2139/ssrn.1871687

Contact Information

Thomas B. Astebro (Contact Author)
HEC Paris (Groupe HEC) - Strategy & Business Policy ( email )
Jouy-en-Josas Cedex, 78351

Carlos J. Serrano
Universitat Pompeu Fabra, Barcelona GSE ( email )
Ramon Trias Fargas 25-27
Barcelona, 08005
HOME PAGE: http://www.econ.upf.edu/~cserrano
Bank of Spain - Research Department ( email )
Alcalá 48
Madrid, 28014
University of Toronto - Rotman School of Management, RIIB
105 St. George Street
Toronto, Ontario M5S 3E6
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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