Selective subsidies, entrepreneurial founders' human capital, and access to R&D alliances

Luca Grilli*, Samuele Murtinu

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

16 Citations (Scopus)

Abstract

We investigate if and to what extent the receipt of a "selective" subsidy - a public subsidy awarded through a competitive procedure - helps new technology-based firms (NTBFs) to access R&D alliances. In particular, we theoretically enquire and empirically analyze which founding team-level characteristics allow NTBFs to: i) get a selective subsidy; and ii) access an R&D alliance with another firm or a public research organization/university, once the subsidy is awarded. We use a sample of 902 NTBFs that operate in Italy, where industrial policy has never had an explicit and exclusive mandate neither for targeting NTBFs nor for easing their access to R&D networks. By means of several identification strategies and estimation methods, our results point to the relevance of selective subsidies in facilitating NTBFs to enter R&D alliances, independently from the objective of the policy measure. Second, founders' technical education figures as a key determinant to get the first selective subsidy. Finally, founders' previous industry-specific work experience allows NTBFs to better exploit the selective subsidy, by positively moderating the impact of the subsidy on the likelihood to establish a corporate R&D alliance.

Original languageEnglish
Pages (from-to)1945-1963
Number of pages19
JournalResearch Policy
Volume47
Issue number10
Early online date29-Jul-2018
DOIs
Publication statusPublished - Dec-2018

Keywords

  • New technology-based firms
  • Selective public subsidies
  • R&D alliances
  • Founders'
  • human capital
  • TECHNOLOGY-BASED FIRMS
  • TECH START-UPS
  • BINARY CHOICE MODELS
  • RESOURCE-BASED VIEW
  • STRATEGIC ALLIANCES
  • ENDOGENOUS REGRESSORS
  • COMPLEMENTARY ASSETS
  • PROBIT MODELS
  • INTERFIRM COOPERATION
  • LONGITUDINAL ANALYSIS

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