Search

Ratio Working Paper No. 206: The Relationship Between Innovation and New Firm Growth.

PublicationWorking paper
Alexander McKelvie, Anna Brattström, Företagandets villkor, Företagstillväxt, Forskning, Innovation, Karl Wennberg, Nya företag
Ratio Working Paper No. 206
Download

Abstract

This paper seeks to untangle the relationship between new firm’s innovative activities and subsequent growth. We theorize about the inter-related roles of managerial growth willingness, inputs and outputs of innovative activities, and their subsequent link to sales growth. Investigating a longitudinal sample of 282 new Swedish firms reveals a complex set of mediating relationships that, when combined, help explain how innovation affects growth. First, we find growth willingness has an important relationship with innovative inputs such as R&D and market knowledge competence. Second, these inputs affect important innovative outputs such as new product development and the percentage of sales from new products. Third, these outputs directly affect growth – whereas the innovative inputs such as R&D do not have a direct impact. Taken together, our paper highlights the joint importance of managerial attitudes and strategic choices that help to shed new light on the effect of innovation on new firm growth. Implications for research and public policy are discussed.

Brattsröm, A., McKelvie, A. & Wennberg, K. (2013). ”The Relationship Between Innovation and New Firm Growth”. Ratio Working Paper No. 206.


Similar content

Third-Generation Innovation Policy: System Transformation or Reinforcing Business as Usual?
Book chapterPublication
Bergkvist, J. E., Moodysson, J., & Sandström, C.
Publication year

2022

Published in

Questioning the Entrepreneurial State, 201.

Abstract

There has been a shift in innovation policy in recent years toward more focus on systemic transformation and changed directionality. In this chapter, we describe a collection of challenges that such policies need to address. Based on a review of dominant frameworks regarding socio-technical transitions, we compare these theories with examples of innovation policy in different countries. Systemic transformation across an economy usually requires a process of creative destruction in which new competencies may be required, actors need to be connected in novel ways, and institutions may need to be changed. Our empirical illustrations show that support programs and initiatives across Europe do not always seem to result in such a process, as they include mechanisms favoring large, established firms and universities. These actors have often fine-tuned their activities and capabilities to the existing order, and therefore have few incentives to engage in renewal. As the incumbent actors also control superior financial and relational resources, there is a risk that they captivate innovation policies and thus reinforce established structures rather than contributing to systemic transformation.

Utvärderingar av näringspolitik – en intressekonflikt mellan myndigheter, konsult-företag, politik och skattebetalare?
Article (without peer review)Publication
Colin, E., Sandström, C., & Wennberg, C.
Publication year

2021

Published in

Ekon. Debatt, 49, 30-41.

Abstract

Antalet utvärderingar av ekonomisk politik ökar explosionsartat. Det finns dock få systematiska sammanställningar av de utvärderingar som görs och det saknas kunskap om hur utvärderare skiljer sig åt gällande metoder och slutsatser, inte minst inom näringspolitiken. Vi studerar utvärderingar av 110 näringspoli-tiska insatser 2009–19 genom att granska huruvida valet av utvärderare påver-kar utvärderingarnas resultat. Privata konsulter visar sig vara den vanligaste utvärderaren av näringspolitik och deras utvärderingar skiljer sig från andra utvärderare genom att vara övervägande mer positiva till de utvärderade insat-serna. Vi diskuterar intressekonflikter som kan antas föreligga mellan utvärde-rare, myndigheter, den politiska makten och allmänheten.

Colin, E., Sandström, C., & Wennberg, C. (2021). Utvärderingar av näringspolitik–en intressekonflikt mellan myndigheter, konsultföretag, politik och skattebetalare. Ekon. Debatt, 49, 30-41.

Government-sponsored entrepreneurship education: Is less more?
Article (with peer review)Publication
Sjöö, K., Elert, N. & Wennberg, K.
Publication year

2020

Abstract

Entrepreneurship research suggests that entrepreneurship education and training can bridge the gender gap in entrepreneurship, but little empirical research exists assessing the validity and impact of such initiatives. We examine a large government-sponsored entrepreneurship education program aimed at university students in Sweden. While a pre-study indicates that longer university courses are associated with short-term outcomes such as increased self-efficacy and entrepreneurial intentions, results from a more comprehensive study using a pre-post design suggest little effect from these extensive courses on long-term outcomes such as new venture creation and entrepreneurial income. In contrast, we do find positive effects on these long-term outcomes from more limited but more specific training interventions, especially for women. Our study suggests that less extensive but more tailored interventions can be more beneficial than longer or more extensive interventions in promoting entrepreneurship in general, and entrepreneurship of underrepresented groups in particular. We discuss implications for theory, education, and policy.

Show more

Postgiro: 382621-1

|

Bankgiro: 512-6578