Entrepreneurial Spillovers from Corporate R&D

78 Pages Posted: 26 Dec 2018 Last revised: 27 Apr 2020

See all articles by Tania Babina

Tania Babina

Columbia Business School - Finance and Economics

Sabrina T Howell

New York University (NYU) - Leonard N. Stern School of Business

Date Written: April 1, 2020

Abstract

This paper offers the first study of how changes in corporate R&D investment affect labor mobility. We document that increases in firm R&D have no measurable effect on employee mobility to other incumbent firms or on exit from employment, but do spur employee departures to join the founding teams of startups. These startups are more likely to be outside the R&D-investing employer’s industry, suggesting that the ideas moving via employees to startups would impose diversification costs on the parent. These startups also likely generate substantial spillover benefits, as they are more likely to be VC-backed, high-tech, and high-wage.

Keywords: Innovation, R&D, Entrepreneurship, Investment

Suggested Citation

Babina, Tania and Howell, Sabrina T, Entrepreneurial Spillovers from Corporate R&D (April 1, 2020). Available at SSRN: https://ssrn.com/abstract=3295995 or http://dx.doi.org/10.2139/ssrn.3295995

Tania Babina

Columbia Business School - Finance and Economics ( email )

3022 Broadway
New York, NY 10027
United States

Sabrina T Howell (Contact Author)

New York University (NYU) - Leonard N. Stern School of Business ( email )

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Suite 9-160
New York, NY NY 10012
United States
212-998-0913 (Phone)

HOME PAGE: http://www.sabrina-howell.com

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