Abstract

http://ssrn.com/abstract=1871687
 
 

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Business Partners, Financing, and the Commercialization of Inventions


Thomas B. Astebro


HEC Paris - Strategy & Business Policy

Carlos J. Serrano


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

June 1, 2011


Abstract:     
This paper studies the effect of business partners on the commercialization of invention-based ventures, and it assesses the relative importance of the complementary human and social capital, and financial capital these partners may add to the original inventor-entrepreneur. Projects run by partnerships were five times more likely to reach commercialization, and they had mean revenues approximately ten times greater than projects run by solo-entrepreneurs. These gross differences may be due both to partners impacting business success and to selection. After controlling for selection effects and observed/unobserved heterogeneity, the smallest estimate of partner human/social capital approximately doubles the probability of commercialization and increases expected revenues by 29% at the sample mean. The results indicate that the decision to form a business partnership is an important determinant of the large heterogeneity in entrepreneurial success, and that obtaining human and social capital accounts for a large portion of this effect.

Number of Pages in PDF File: 44

Keywords: Entrepreneurship, Business Partners, Entrepreneurial finance

JEL Classification: M13, G24, O31, J24

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Date posted: June 24, 2011 ; Last revised: December 2, 2013

Suggested Citation

Astebro, Thomas B. and Serrano, Carlos J., Business Partners, Financing, and the Commercialization of Inventions (June 1, 2011). Available at SSRN: http://ssrn.com/abstract=1871687 or http://dx.doi.org/10.2139/ssrn.1871687

Contact Information

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

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