Achieving High Growth in Policy-Dependent Industries: Differences between Startups and Corporate-Backed Ventures
Georgallis, P., & Durand, R. (2016). Achieving High Growth in Policy-Dependent Industries: Differences between Startups and Corporate-Backed Ventures. Long Range Planning. doi:10.1016/j.lrp.2016.06.005
40 Pages Posted: 23 Jul 2016 Last revised: 6 Aug 2016
Date Written: June 11, 2016
This research examines which firms achieve high growth in policy-dependent industries. Using the European solar photovoltaic industry as our empirical setting, we investigate the impact of policy support on the growth of independent startups and corporate-backed ventures operating across countries with diverse policy conditions. We find that producers' growth is positively linked to policy generosity, and negatively linked to policy discontinuity. Moreover, corporate-backed ventures are less affected by policy generosity compared to entrepreneurial startups, and less impacted by policy discontinuity as well. Our results underline the importance of country- and firm-level differences in analyzing firms' response to regulatory policies, and point to the need for a better understanding of the unintended consequences of policies designed to support new industries.
Keywords: firm growth; high growth; public policy; policy uncertainty; policy generosity; policy discontinuity; solar photovoltaic; renewable energy; organizational prehistory
JEL Classification: L23; L1; L21; L5; L63; L98; M11; M13; N6; O38; Q42; Q5
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