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Knowledge inheritance and performance of spinouts

Author

Listed:
  • Carla Costa

    (Maastricht University
    Universidade de Lisboa)

  • Rui Baptista

    (Universidade de Lisboa)

Abstract

We investigate the impact of knowledge inheritance by vertical spinouts originating from user and supplier industries on performance. We test whether spinouts from a supplier or user industry perform better than focal industry spinouts and de novo entrants. Using longitudinal micro data for the Portuguese molds and plastics industries we find that vertical user and supplier spinouts perform better in terms of survival (but not in terms of early sales) than focal industry spinouts, and all types of spinouts perform better than de novo entrants. The results suggest that vertical spinouts possess specific knowledge that might be more valuable than that of focal industry spinouts, while spinouts originating from suppliers underperform those originating from users.

Suggested Citation

  • Carla Costa & Rui Baptista, 2023. "Knowledge inheritance and performance of spinouts," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 29-55, March.
    • Handle: RePEc:spr:eurasi:v:13:y:2023:i:1:d:10.1007_s40821-022-00235-y
    DOI: 10.1007/s40821-022-00235-y
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    More about this item

    Keywords

    Vertical spinouts; Focal spinouts; User industry; Supplier industry; Pre-entry knowledge; Clusters;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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