The Early Growth of Research-Based Start-Ups

Abstract

The high-growth potential has long been the dominant view on RBSUs among researchers and policy makers. Several researchers indicate that RBSUs, once they have reached a certain critical mass, exhibit faster average employment growth rates than non-high-tech starters (Mustar, 1995; Licht & Nerlinger, 1998; Storey & Tether, 1998; Delapierre, Madeuf, & Savoy, 1998; Autio & Parhankangas, 1998). However, in recent years several researchers showed that the idea of fast growth does not hold for most RBSUs. Rickne and Jacobsson (1999) found that the vast majority of new technology-based firms (NTBFs) remained very small. Also Autio and Yli-Renko (1998) reported that most NTBFs in Finland did not grow at all. Similar findings were reported in France (Mustar, 1997), Italy (Chiesa & Piccaluga, 2000) and in Cambridge, UK (Segal Quince Wicksteed, 2000). Delappiere et al. (1998) further argue that high-tech firms that concentrate on R&D and work primarily as research subcontractors for large groups show little employment growth. In contrast, firms that deal with turning technology into new uses tend to grow and create employment as they develop their manufacturing and marketing capabilities. Clearly, there is still much discussion and uncertainty regarding the growth potential of RBSUs.

Citation

Heirman, A. and Clarysse, B. (2006), "The Early Growth of Research-Based Start-Ups", Wiklund, J., Dimov, D., Katz, J.A. and Shepherd, D.A. (Ed.) Entrepreneurship: Frameworks And Empirical Investigations From Forthcoming Leaders Of European Research (Advances in Entrepreneurship, Firm Emergence and Growth, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 195-227. https://doi.org/10.1016/S1074-7540(06)09008-8