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Are R&D investments by incumbents decreasing in the availability of complementary assets for start-ups?

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  • Luca Stanca
  • Herbert Dawid
  • Mariacristina Piva
  • Marco Vivarelli

Abstract

This paper investigates, both theoretically and empirically, the implications that complementary assets needed for the formation of start-ups -proxied by the ease of access to financial resources- have on the innovative efforts of incumbent firms. In particular, we develop a theoretical model, highlighting a strategic incentive effect by which the innovative efforts of incumbent firms are decreasing in the availability of the complementary assets needed for the creation of a startup. The empirical relevance of this effect is investigated by using firm level data drawn from the third Italian Community Innovation Survey covering the period 1998-2000. The results of our empirical analysis support our theory-based insights.

Suggested Citation

  • Luca Stanca & Herbert Dawid & Mariacristina Piva & Marco Vivarelli, 2015. "Are R&D investments by incumbents decreasing in the availability of complementary assets for start-ups?," LEM Papers Series 2015/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2015/12
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    Keywords

    R&D; Innovation; Start-up; Complementary Assets;
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