The Consequences of Entrepreneurial Firm Founding on Innovation

47 Pages Posted: 10 Jul 2013

See all articles by Michael Ewens

Michael Ewens

California Institute of Technology - Division of the Humanities and Social Sciences; National Bureau of Economic Research (NBER)

Christian Fons-Rosen

University of California, Merced

Date Written: July 10, 2013

Abstract

This paper studies if and how individual-level patenting activity changes as an employee transitions to entrepreneurial firm founder. Using a large database of employment and innovative histories of over 1110 spinoff firm founders, the empirical strategy tracks both founders and her co-inventors who remain at her previous employer. There are significant changes in patenting focus and quality. Founders are relatively more likely to focus on fewer industry patent classes as the lead patent author, while citing their previous work less. Their patent quality increases after spinoff firm founding in several ways. Non-self citations received increase and the types of patent applications point to a move towards longer-term projects. Finally, we interpret a higher probability of producing a patent in both the right and the left tail of the quality distribution as suggestive evidence of the spinoff firm pursuing riskier projects.

Keywords: entrepreneurship, innovation, spinoffs, venture capital

JEL Classification: L26, O31, M13, G24

Suggested Citation

Ewens, Michael and Fons-Rosen, Christian, The Consequences of Entrepreneurial Firm Founding on Innovation (July 10, 2013). Available at SSRN: https://ssrn.com/abstract=2291811 or http://dx.doi.org/10.2139/ssrn.2291811

Michael Ewens (Contact Author)

California Institute of Technology - Division of the Humanities and Social Sciences ( email )

1200 East California Blvd.
Pasadena, CA 91125
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Christian Fons-Rosen

University of California, Merced ( email )

P.O. Box 2039
Merced, CA 95344
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
169
Abstract Views
1,488
rank
224,614
PlumX Metrics