Curran, DeclanORCID: 0000-0003-0788-1210, van Egeraat, Chris and O'Gorman, ColmORCID: 0000-0003-4732-7433
(2015)
Inherited competence and spin-off performance.
European Planning Studies, 24
(3).
pp. 443-452.
ISSN 0965-4313
In this paper we extend the hereditary theory of spin-off formation, developed by Klepper, by relating the concept of inherited competence to two different types of spin-offs—university and private sector spin-offs—and two different types of inherited competence—R&D competence and innovation competence. We then utilize this extension of Klepper's framework to study the evolution of a science-based industry—the biotech industry. Using the Irish biotech industry as a case-study, we find that differences in pre-entry experience manifest themselves most markedly in terms of the firm's capacity to attract venture capital, with private sector spin-offs considerably outperforming university spin-offs. We argue that the superior performance of the private sector spin-offs is explained by the nature of their inherited competence in that they are characterized by higher levels of innovation competence.
Item Type:
Article (Published)
Refereed:
Yes
Additional Information:
The authors would like to thank the participants of the 8th European Meeting on Applied Evolutionary Economics (EMAEE), held at SKEMA Business School, Sophia Antipolis, France in June 2013, for their helpful comments.