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Are researchers more likely to succeed when they start a technology-based startup?

Author

Listed:
  • Jeongbong Han
  • Daehyun Kim
  • Wonjoon Kim
  • Sunghyun Cho

Abstract

This study investigates the relationship between a founder’s occupational background and the survival rate of technology-based startups, focusing on founders with prior research positions. Utilizing a unique tech-based startup database, the study discovers that startups founded by researchers exhibit a lower survival rate compared to those led by founders with other backgrounds. Nevertheless, prior entrepreneurial experience positively moderates the relationship between a founder’s research experience and startup survival rate, indicating that practical business knowledge can offset the inherent lack of business expertise in a researcher’s background. Moreover, the study reveals that startups established by researchers from large companies have an even lower survival rate, as specialization within large organizations may impede the acquisition of essential management skills. These findings emphasize the importance of developing a diverse skill set for startup success.

Suggested Citation

  • Jeongbong Han & Daehyun Kim & Wonjoon Kim & Sunghyun Cho, 2024. "Are researchers more likely to succeed when they start a technology-based startup?," Applied Economics Letters, Taylor & Francis Journals, vol. 31(20), pages 2171-2175, November.
    • Handle: RePEc:taf:apeclt:v:31:y:2024:i:20:p:2171-2175
    DOI: 10.1080/13504851.2023.2212399
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