scholarly journals The importance for a start-up to trust in open innovation: A systematic literature review

2020 ◽  
Vol 9 (4) ◽  
pp. 289-297
Author(s):  
Katia Mastrostefano ◽  
Gustavo Morales-Alonso ◽  
Marco Greco ◽  
Michele Grimaldi ◽  
Jose Antonio Blanco-Serrano
Keyword(s):  
Open Innovation ◽  
New Ventures ◽  
Innovation Adoption ◽  
Well Being ◽  
Crucial Point ◽  
Start Up ◽  
External Sources ◽  
Start Ups ◽  
Manage Innovation ◽  
Innovation Processes

It has long been known that new firms are fundamental for economic growth. Starting new companies is one of the best ways to fight unemployment and to generate well-being. Therefore, attention is paid by the scientific community to start-ups, with particular empha-sis at how they generate, acquire and manage innovation. Initially, start-ups need to identify the resources necessary for innovation and later they will decide whether to develop them internally or acquire them externally. Being open to external sources is a crucial point for the success of new ventures; indeed, adopting Open Innovation processes allows start-ups to overcome their initial shortcomings. The goal of this research is to understand the literature status related to Open Innovation adoption by start-ups.

Credibility-Driven Entrepreneurship

2011 ◽  
Vol 12 (1) ◽  
pp. 5-15 ◽  
Author(s):  
Jakob Rehme ◽  
Peter Svensson
Keyword(s):  
New Product Development ◽  
New Ventures ◽  
Marketing Theory ◽  
Start Up ◽  
External Stakeholders ◽  
Entrepreneurship Theory ◽  
First Sale ◽  
Speed To Market ◽  
Start Ups ◽  
Business To Business

This article investigates how external stakeholders influence the first sale of technology-based business-to-business start-up companies. The authors combine entrepreneurship theory with marketing theory to describe the marketing and selling activities of start-ups and how new ventures reach key milestones. The study shows how two start-ups, an e-business firm and a new product development firm, acquired their first customers. The analysis provides a picture of how a network of the firms' founders, board members and owners contributed to their first sales. It also highlights the importance of sales activities, relationships and industrial knowledge. The paper examines the importance of external stakeholders' relative positions in the web of relationships and assesses how relevant these are in affecting outcomes and speed to market. The authors conclude that the first sale follows a time line with three important phases of activities involving credibility, closing and operations. They find that credibility is best obtained through establishing relationships.

scholarly journals The early growth of start-ups: innovation matters. Evidence from Italy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raffaele Fiorentino ◽  
Sergio Longobardi ◽  
Alessandro Scaletti
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Firm Growth ◽  
Ad Hoc ◽  
Early Stage ◽  
New Ventures ◽  
Objective Measure ◽  
Content Type ◽  
Start Up ◽  
Start Ups

PurposeDespite the relevance of innovation in entrepreneurship literature, empirical research on the innovation-performance relationship in start-ups is underdeveloped and shows controversial results. To bridge this gap, the aim of this paper is to investigate the role of innovativeness on new venture performance in the early stage of the life cycle.Design/methodology/approachRegression modelling and propensity score matching are used to reveal systematic differences in growth between innovative start-ups (ISUPs) and non-innovative start-ups. We use an ad hoc dataset obtained through merging the financial database AIDA with data from administrative sources (Italian Chambers of Commerce and the Italian Ministry for Economic Development).FindingsThe results show that differences in growth can be explained by the different levels of innovativeness in new ventures. Moreover, unlike in prior studies, the innovation inputs matter more than innovation outputs. Indeed, the results support the idea that innovation policies can contribute to maximising the potential of start-ups.Practical implicationsThe findings provide suggestions for policy makers and entrepreneurs to help firms configure ex ante appropriate actions to support the growth of new ventures in the start-up stage.Originality/valueThis study is the first to use the new objective measure of start-up innovation, available from the Italian LD 221 register. Second, different types of innovation are investigated as antecedents of firm growth. Third, we employ propensity score matching, which favours revealing systematic differences in growth between ISUPs and non-innovative start-ups. Fourth, the results of our study are the first to offer evidence on the effectiveness of the new Italian sustaining ISUPs policy.

scholarly journals Accelerating chemical start-ups in ecosystems: the need for biotopes

2017 ◽  
Vol 20 (1) ◽  
pp. 135-152 ◽  
Author(s):  
Maarten J.G.M. van Gils ◽  
Floris P.J.T. Rutjes
Keyword(s):  
Open Innovation ◽  
Organizational Capacity ◽  
Innovation Process ◽  
Ecosystem Model ◽  
Innovation Ecosystem ◽  
Content Type ◽  
Start Up ◽  
Innovation Practices ◽  
Start Ups

Purpose The purpose of this paper is to clarify the relationship between start-ups and an innovation ecosystem. Start-ups need resources available in the ecosystem to grow, but experience organizational capacity limitations during their open innovation practices. This study frames the “open innovation” interface and discloses ways to accelerate the process of connecting start-ups’ demands to ecosystem’s supplies. Design/methodology/approach A case study was used to describe the development of a conceptual ecosystem model to frame the “open innovation” interface and its subsequent implementation at nine start-up hotspots in the Dutch chemical industry. To develop the ecosystem model, the system of innovation concept was enriched with the perspective of a chemical start-up to pinpoint critical resources for growth. Findings It is suggested that the most relevant “open innovation” interface for start-ups looking to grow is an innovation biotope: a well-defined, business-oriented cross-section of an ecosystem. All stakeholders in a biotope are carefully selected based on the entrepreneurial issue at stake: they can only enter the secured marketplace if they are able to provide dedicated solutions to start-ups. The biotope enables “open innovation in a closed system” which results in acceleration of the innovation process. Originality/value This is the first study to report on the definition and implementation of an innovation biotope as the “open innovation” interface between an ecosystem and start-ups. In addition, it provides a powerful tool, the ecosystem canvas, that can help both regional and national innovation systems to visualize their ecosystem and identify blind spots.

scholarly journals Analysis of Open Innovation Practices in Malaysian SMEs

2018 ◽  
Vol 8 (1) ◽  
pp. 248
Author(s):  
Ashkan Rangamiztousi ◽  
Kamariah Bt Ismail
Keyword(s):  
Developing Countries ◽  
Open Innovation ◽  
Innovation Adoption ◽  
High Rank ◽  
Quantitative Methodology ◽  
Statistical Procedures ◽  
Innovation Activities ◽  
Innovation Practices ◽  
Inside Out ◽  
Innovation Processes

Open Innovation is a phenomenon that has become increasingly important due to found shorter innovation cycles, industrial R&D escalating costs as well as in the dearth of resources. Researchers have suggested various kinds of practices and ways to categorized them. However, most of prior studies only used some of the practices to measured open innovation, but the measurements were very generic as some practices are broadly defined, and the list of open innovation activities not included new activities and completed list of practices. Hence, it is crucial to identify a new list of open innovation practices and study on similar practices in developing countries to help their companies understand open innovation and its practices as well. This study reviewing prior studies on open innovation adoption published between 2003 and March 2014 and identified 36 different practices. Therefore, we created a new list of open innovation practices that cover most of strategies and practices mentioned in prior studies. This study used quantitative methodology, 400 high rank executives manager of Malaysia SMEs participated and completed the survey and further analyzed using the appropriate statistical procedures. The results indicated that Malaysian SMEs use three core processes of open innovation including coupled, outside-in, and inside-out practices in their open innovation processes, respectively. 

scholarly journals Open accelerators for start-ups success: a case study

2017 ◽  
Vol 20 (1) ◽  
pp. 80-111 ◽  
Author(s):  
Cinzia Battistella ◽  
Alberto F. De Toni ◽  
Elena Pessot
Keyword(s):  
Open Innovation ◽  
Research Question ◽  
Innovation Process ◽  
Open Approach ◽  
Content Type ◽  
Start Up ◽  
The One ◽  
Innovation Practices ◽  
Start Ups

Purpose The purpose of this paper is to investigate how the context of open innovation offered by accelerators can affect the successful growth of start-ups. The authors explore accelerators practices and tools in sustaining start-ups and increasing survival probability in their innovation process, with the aim of addressing the following research question: how can start-ups benefit from participation in an accelerator programme from an open innovation perspective? Design/methodology/approach A review of the literature on start-up successes and failures and on major practices in the open innovation paradigm was carried out, delineating them in the context of accelerators. Given the absence of literature on accelerator practices for supporting start-ups, and aiming at a comprehensive understanding of how the open environment within the accelerator influences a start-up’s survival (or even success) by mitigating the probability of failure, the authors conducted an exploratory case study in an English accelerator. Findings The open innovation practices mediated by an accelerator and the ones that are not covered, but that can benefit a start-up’s survival, are shown. On the one hand, main effective practices, such as dyadic co-creation with accelerator network partners and crowdsourcing, are revealed to address mostly the lack of, or wrong direction in, product, marketing and relative managerial abilities, which are not usually owned by a start-up due to its “newness”. On the other hand, some causes of failures, such as the intrinsic characteristics of founder teams, do not seem to be addressed by an open approach and neither does participation in an accelerator programme. Originality/value This paper is the first to study and link the literature on accelerators, start-ups and open innovation.

ATTITUDE TOWARDS ENTREPRENEURSHIP EDUCATION AND NEW VENTURE CREATION

2003 ◽  
Vol 11 (04) ◽  
pp. 339-357 ◽  
Author(s):  
LENA LEE ◽  
POH-KAM WONG
Keyword(s):  
New Ventures ◽  
Entrepreneurship Education ◽  
Prima Facie ◽  
Causal Link ◽  
New Venture ◽  
Future Research ◽  
Entrepreneurial Education ◽  
Policy Makers ◽  
Start Up ◽  
Start Ups

Does an individual's positive attitude towards entrepreneurship education promote the growth of new ventures? It appears that it does. The empirical results presented in this paper support a prima facie claim that a relationship exists between attitude towards entrepreneurial education and business start-up. The aim of this paper is to investigate the hypothesised positive relationship between new venture founding and attitude towards entrepreneurial education (AEE). Limited if any research on new venture founding in the past has explored the contribution of AEE in business start-ups. A survey is carried out on a large sample (more than 15,000) of tertiary students residing in Singapore. In analysing the dataset, we have controlled for various factors in the regression analysis. Due to the limitations of our study, we are cautious not to assert any causal link between these 2 variables. The implications of the results to policy makers and educators are discussed along with suggestions for future research in order to refine our present understanding of these relationships.

Micro-econometric analysis of innovative start-ups: the role of firm-specific factors and industry context in innovation propensity

2020 ◽  
Vol 29 (4) ◽  
pp. 935-957
Author(s):  
Claudia Capozza ◽  
Sergio Salomone ◽  
Ernesto Somma
Keyword(s):  
Absorptive Capacity ◽  
Industrial Structure ◽  
New Ventures ◽  
Enabling Factors ◽  
Policy Makers ◽  
Technological Value ◽  
Start Up ◽  
Product And Process Innovation ◽  
Product And Process ◽  
Start Ups

Abstract We explore the innovation-enabling factors in young innovative companies (YICs) considering different elements of firm-specific absorptive capacity along with factors related to the industrial structure. Evidence from Italian YICs, known as innovative start-ups whose creation was prompted by the Start-up Act in 2012, shows that absorptive capacity factors matter with differences for product and process innovation. Moreover, the configuration of the industry context remarkably shape innovation, providing implications for policy-makers seeking to improve the national competitiveness by sustaining new ventures of high technological value.

Open innovation for start-ups

2017 ◽  
Vol 20 (1) ◽  
pp. 112-134 ◽  
Author(s):  
Francesca Michelino ◽  
Antonello Cammarano ◽  
Emilia Lamberti ◽  
Mauro Caputo
Keyword(s):  
Open Innovation ◽  
Knowledge Domain ◽  
Content Type ◽  
Joint Development ◽  
Start Up ◽  
Innovation Output ◽  
Start Ups ◽  
The Impact ◽  
Domain Level

Purpose The purpose of this paper is to provide a methodological framework for evaluating the impact of open innovation (OI) adoption on start-up ventures at the knowledge domain level, taking into account the technological specialization and the quality of innovation output. Design/methodology/approach The framework employs patent data for investigating joint development activities between start-ups and partners, thus defining an openness degree of R&D. The partner typology and the levels of specialization on the knowledge fields affected by each invention are investigated. The methodology is tested on a sample of bio-pharmaceutical start-ups. Findings On average, the openness level in the start-up phase is higher than the consolidation one. Furthermore, the higher the level of openness during the start-up phase, the higher the propensity to collaborate with scientific organizations. And yet, the occurrence of R&D collaborations is positively correlated to the level of specialization on the knowledge fields involved in joint development activities. Practical implications OI strategies are valuable for start-ups, particularly in the bio-pharmaceutical industry, since their adoption improves the quality of innovation output. This is particularly true when R&D collaborations are established with scientific entities. Originality/value This work investigates the impact of OI adoption on start-up ventures at the knowledge domain level, by employing objective and standardized data. Hence, the methodology can be considered as a first step in developing a useful tool for managers, researchers and business analysts.

scholarly journals Start-ups, bearers of innovation in globalizing environment and their valuation

2020 ◽  
Vol 74 ◽  
pp. 01001
Author(s):  
Veronika Achimská
Keyword(s):  
Significant Degree ◽  
Business Environment ◽  
Point Of View ◽  
Theoretical Point ◽  
Business Valuation ◽  
Factors Affecting ◽  
Start Up ◽  
External Sources ◽  
Uniform Valuation ◽  
Start Ups

The paper presents chosen methods of star-up valuation. In the context of globalization, innovations are clearly bearers of a potential enterprises’ competitiveness, start-ups are consider as their most important sources. Start-ups are mainly based on the human capital designed to create novel products, services, processes, and bring them to the markets. The basic precondition for meaningful growth of start-ups is favourable business environment (legal and administrative point of view) and framework supporting innovative entrepreneurship including access to external sources of financing. Start-ups are investments with a significant degree of uncertainty, lacking any characteristics pointing to their financial and economic performance from a historical perspective, which restricts the use of “traditional” business valuation methods. It should also be pointed out that, as there is no uniform valuation for maturity enterprises, there is no uniform procedure for valuing of a business even in the case of start-ups. The presented approaches take into account decisive criteria of start-ups, including a life cycle of a start-up in which an investment is made, and other factors affecting valuation. Their use from a theoretical point of view is generalized, the practical use is already determined by specific conditions under which the valuation takes place.

scholarly journals Does Information Asymmetry Influence Hi-tech Entrepreneurial Financing?

2021 ◽  
Vol 5 (4) ◽  
pp. p9
Author(s):  
Anthony LIU
Keyword(s):  
Information Asymmetry ◽  
New Ventures ◽  
High Tech ◽  
Liability Of Foreignness ◽  
Financing Decisions ◽  
Start Up ◽  
Entrepreneurial Financing ◽  
Start Ups ◽  
Main Effects ◽  
Moderating Role

Exploring the effective ways of start-up financing is an important and practical issue to technological innovation and economic development. This paper aims to investigate the impacts of information asymmetry on the high-tech start-up financing preference, and whether an entrepreneur’s internationality features moderate the main effects. A sample of 500 high-tech start-ups and new ventures was collected at Shenzhen, China. Regression models are designated for testing both the main effects predicted in research hypotheses and the predicted moderating role of an entrepreneur’s internationality features. Our test results lead to 3 findings: firstly, in the high-tech industries, the information asymmetry mitigated by disclosing intellectual properties can significantly increase the start-up preference for external financing. This finding can be explained by the reduction of agency costs of debts. Secondly, the lessened information asymmetry can shorten the life cycle of start-up financing under the pecking order hypothesis. Lastly, the liability of foreignness is observed to have a significant positive moderating role on the main effects under the investigation. It can be concluded that the information asymmetry and the liability of foreignness are crucial factors influencing start-up financing decisions.This conclusion implies that reducing the information asymmetry by adequately disclosing technological strength and tacit knowledge can benefit the entrepreneurial financing for the high-tech start-ups and new ventures at the early stages, as well as provide an effective shortcut to the start-up financing cycle. Furthermore, the introduction of overseas technologies, funds, knowledge, experiences, and entrepreneurship into the high-tech start-ups does not create the liability of foreignness, and on the contrary, it is an “asset” that can help improve entrepreneurial financing decisions.

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