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Internationalisation of high-tech start-ups and fast growth-evidence for UK and Germany

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  • Bürgel, Oliver
  • Fier, Andreas
  • Licht, Georg
  • Murray, Gordon

Abstract

For firms acting in technological niches the expansion into foreign markets can be a way to increase sales and to thus to recover initial sunk costs over a shorter time frame. Our research, based on survey data for nearly 600 British and German high-tech start-ups, examines whether internationalisation leads to faster growth among high-tech start-ups. Results show that firms with international sales have higher sales growth than firms that sell only domestically. We find that technological sophistication of products and the experience of entrepreneurs has a positive impact on growth. In addition, intense competition and shorter windows of opportunity increase the pressure to grow rapidly to appropriate the returns from innovation. The findings suggest that high tech firm founders should be more determinedly international in their vision and strategies from the very start of their business to increase the economic success of their efforts.

Suggested Citation

  • Bürgel, Oliver & Fier, Andreas & Licht, Georg & Murray, Gordon, 2000. "Internationalisation of high-tech start-ups and fast growth-evidence for UK and Germany," ZEW Discussion Papers 00-35, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5318
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    References listed on IDEAS

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    Cited by:

    1. Engel, Dirk, 2002. "The Impact of Venture Capital on Firm Growth: An Empirical Investigation," ZEW Discussion Papers 02-02, ZEW - Leibniz Centre for European Economic Research.
    2. Mercedes Teruel & Alex Coad & Clemens Domnick & Florian Flachenecker & Peter Harasztosi & Mario Lorenzo Janiri & Rozalia Pal, 2022. "The birth of new HGEs: internationalization through new digital technologies," The Journal of Technology Transfer, Springer, vol. 47(3), pages 804-845, June.
    3. Jihye Jeong & Juhee Kim & Hanei Son & Dae-il Nam, 2020. "The Role of Venture Capital Investment in Startups’ Sustainable Growth and Performance: Focusing on Absorptive Capacity and Venture Capitalists’ Reputation," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
    4. Engel, Dirk & Keilbach, Max, 2007. "Firm-level implications of early stage venture capital investment -- An empirical investigation," Journal of Empirical Finance, Elsevier, vol. 14(2), pages 150-167, March.
    5. David Audretsch & Julie Elston, 2006. "Can Institutional Change Impact High-technology Firm Growth?: Evidence from Germany’s Neuer Markt," Journal of Productivity Analysis, Springer, vol. 25(1), pages 9-23, April.
    6. Ciarán Mac an Bhaird & Theo Lynn, 2015. "Seeding the cloud: financial bootstrapping in the computer software sector," Venture Capital, Taylor & Francis Journals, vol. 17(1-2), pages 151-170, April.
    7. Engel Dirk, 2003. "Höheres Beschäftigungswachstum durch Venture Capital? / Does Venture Capital Affect New Firms' Growth?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 223(1), pages 1-22, February.
    8. Stefano Caselli & Stefano Gatti & Francesco Perrini, 2009. "Are Venture Capitalists a Catalyst for Innovation?," European Financial Management, European Financial Management Association, vol. 15(1), pages 92-111, January.
    9. Massimo Colombo & Philippe Mustar & Mike Wright, 2010. "Dynamics of Science-based entrepreneurship," The Journal of Technology Transfer, Springer, vol. 35(1), pages 1-15, February.
    10. Engel, Dirk, 2001. "Höheres Beschäftigungswachstum durch Venture Capital?," ZEW Discussion Papers 01-34, ZEW - Leibniz Centre for European Economic Research.
    11. Schertler, Andrea, 2001. "Venture Capital in Europe's Common Market: A Quantitative Description," Kiel Working Papers 1087, Kiel Institute for the World Economy (IfW Kiel).
    12. Teruel Carrizosa, Mercedes & Coad, Alexander & Domnick, Clemens & Flachenecker, Florian & Harasztosi, Péter & Janiri, Mario Lorenzo & Pál, Rozália, 2021. "The birth of new high growth enterprises: Internationalisation through new digital technologies," EIB Working Papers 2021/02, European Investment Bank (EIB).

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    More about this item

    Keywords

    start-ups; high-technology industries; internationalisation;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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