Patenting and Entrepreneurial Spawning: An Innovation Strategy Approach

37 Pages Posted: 2 Jan 2013 Last revised: 12 Mar 2013

See all articles by Hans Lööf

Hans Lööf

Royal Institute of Technology (KTH)

Pardis Nabavi

Royal Institute of Technology (KTH)

Navid Bazzazian

HEC Paris - Strategy & Business Policy

Date Written: December 2, 2012

Abstract

This paper analyzes how different innovation-strategies of incumbent firms affect the quality of their entrepreneurial spawns. Using a novel data set that combines employer-employee micro data from Sweden with firm level patent application data files for the period 1997-2008, three types of incumbent firms are distinguished: firms that are engaged in innovation activities persistently, occasionally and not at all. The analysis shows only weak indication that the chance of survival for a new firm can be linked back to the innovation strategy of the parent firm. In contrast, there is strong evidence that employee start-ups from persistent innovators are more productive during their first five years on the market than other spin-offs, everything else equal.

Keywords: Innovation, Patent, Spinoff, Survival, Productivity

JEL Classification: C24 L26, M13 O31, O32

Suggested Citation

Loof, Hans and Nabavi Larijani, Pardis and Bazzazian, Navid, Patenting and Entrepreneurial Spawning: An Innovation Strategy Approach (December 2, 2012). Available at SSRN: https://ssrn.com/abstract=2195730 or http://dx.doi.org/10.2139/ssrn.2195730

Hans Loof (Contact Author)

Royal Institute of Technology (KTH) ( email )

Lindstedtsvägen 30-100 44
Stockholm, SE-100 44
Sweden

Pardis Nabavi Larijani

Royal Institute of Technology (KTH) ( email )

Lindstedtsvägen 30-100 44
Stockholm, SE-100 44
Sweden

Navid Bazzazian

HEC Paris - Strategy & Business Policy ( email )

Jouy-en-Josas Cedex, 78351
France

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