The elixir (or burden) of youth? Exploring differences in innovation between start-ups and established firms
File(s)Research Policy_41_2_2012.pdf (265.09 KB)
Accepted version
Author(s)
Criscuolo, Paola
Nicolaou, Nicos
Salter, Ammon
Type
Journal Article
Abstract
Despite the widely acknowledged role of start-ups in economic development, little is known about their
innovative activities compared with those of established firms. Drawing on a sample of 12,209 UK firms,
we differentiate between services and manufacturing firms and, using a matching estimator approach,
demonstrate that start-ups differ significantly from established firms in their innovation activities. We
find that in services, being a start-up increases the likelihood of product innovations. However, in manufacturing,
we find no significant differences in the likelihood of product innovation between start-ups and
established firms. When examining the returns to innovation, we find that start-ups have a significant
advantage both in services and in manufacturing. We explore the implications of these results for theory
and policy.
innovative activities compared with those of established firms. Drawing on a sample of 12,209 UK firms,
we differentiate between services and manufacturing firms and, using a matching estimator approach,
demonstrate that start-ups differ significantly from established firms in their innovation activities. We
find that in services, being a start-up increases the likelihood of product innovations. However, in manufacturing,
we find no significant differences in the likelihood of product innovation between start-ups and
established firms. When examining the returns to innovation, we find that start-ups have a significant
advantage both in services and in manufacturing. We explore the implications of these results for theory
and policy.
Date Issued
2012
Citation
Research Policy, 2012, 14 (2), pp.319-333
ISSN
0048-7333
Publisher
ELSEVIER SCIENCE BV
Start Page
319
End Page
333
Journal / Book Title
Research Policy
Volume
14
Issue
2
Copyright Statement
Copyright © 2012 Elsevier Ltd. NOTICE: this is the author’s version of a work that was accepted for publication in Research Policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Research Policy, 41(2), 2012 DOI:10.1016/j.respol.2011.12.001
Identifier
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Publication Status
Published