The Differential Impact of Intrafirm Collaboration and Technological Network Centrality on Employees’ Likelihood of Leaving the Firm

How does an employee’s centrality in intrafirm research and development activities affect the employee’s propensity for outward mobility? Does this proclivity vary by the type of employment the employee seeks: moving to other firms versus founding a new venture? We maintain that, to answer these questions, we must distinguish between an employee’s centrality in the intrafirm collaboration network and the employee’s centrality in the intrafirm technological recombination network. We utilize the curricula vitae and patent data of corporate inventors at a leading semiconductor company between 1993 and 2012 to test our hypotheses. Contrary to prevailing views, our competing risk model indicates that corporate inventors who are central in the intrafirm collaboration and technological network and, thus, have the most opportunities are less likely to leave the current employer. However, when considering external employment opportunities, their preferences vary. Collaboration-central individuals are more likely to start a new venture than to move to another employer. Their skill in developing interpersonal relationships enables them to attract the tangible and intangible resources needed in a new firm. In contrast, inventors whose technological expertise is central to the firm’s technology recombination network are more likely to move to another employer than to start a new venture. In an established firm, they can leverage their technological know-how using the resources that a new venture would lack. Our theory highlights the trade-offs in employees’ attempts to take advantage of their internal and external value based on their position within the firm’s collaboration and technological networks.

An innovation adoption model of licensing-in for US start-ups

Using the Kauffman panel dataset of US start-ups, we analyse the key determinants oflicensing-in adoption. Licensing-in entails an intellectual property contract between the licensor(e.g. upstream established firm) and licensee (e.g. downstream start-up) aiming to bring aninnovation to market rapidly. Assuming maximizing of the owner’s managerial utility in thestart-up years, we explain licensing-in adoption through firm characteristics like size, R&D andcapital structure, as well as other IP types, and controls for year and regional fixed effects, usingpanel probit estimation with adjustments for sample selection bias and endogeneity. We findkey determinants of licensing-in to be owners’ equity, product (rather than service) sales andR&D spend; and then comment on their policy implications for business incubation.

Identifying contradictions in an incumbent–startup ecosystem–an activity theory approach

PurposeDiscussion regarding systems that promote innovation, aptly named innovation ecosystems, has been intensifying both in academia and business. The purpose of this paper is to introduce the activity theory as a theoretical framework for conceptualising and studying innovation ecosystems. Using the activity theory, it investigates elements that affect the success and viability of innovation ecosystems formed between startups and incumbent firms, collaborating with an established firm within the context of an open innovation programme.Design/methodology/approachThis study uses an exploratory case research approach and proposes the activity theory as a theoretical background to be used in innovation ecosystem research. Based on this approach, this study draws from interviews and research observations in an innovation ecosystem formed between an established firm and various startups that aim to co-develop innovative offerings.FindingsBy applying the activity theory tools, this study identifies several contradictions between interacting actors of this innovation ecosystem that can adversely affect the innovation process. Furthermore, it proposes the use of the activity theory as a fitting theoretical lens to study innovation ecosystems.Originality/valueThe novelty of this study is related to the focus on the incumbent–startup context for extending the innovation ecosystem literature. Using the activity theory as a viable methodological tool allows us to conceptualise firms as social constructs and hence pinpoint inner characteristics that can affect and shape their interactions and the broader ecosystem. This process is further enhanced by the use of primary data that give unique insights into the inner workings of innovation ecosystems by identifying underlying contradictions.

Manly Missions

This chapter explores the European origins of missionary masculinity and the affective reasons behind the phenomenal growth of the Jesuit order. It pays particular attention to the reimagined clerical masculinity that the founding father Ignatius of Loyola modeled for and generated in other men across Europe, notably in German lands. Two media of male mimesis are especially relevant: Ignatius’s so-called Autobiography and his Spiritual Exercises. Ignatian manhood lent itself to participation in European expansion due to its global orientation, high mobility, and emphasis on patri-filial ties. Jesuit masculinity made ample room for the feminine on the level of the symbolic and the affective but established firm boundaries with actual women through women’s de jure exclusion from the all-male Society of Jesus.

Sequential Product Development and Introduction by Cash-Constrained Start-Ups

Problem definition: Firms developing novel and innovative products regularly face a canonical product development and introduction problem: introduce a proven and immediately available product or delay product introduction until the successful development of an advanced version. Academic/practical relevance: Limited access to resources for the development of an advanced version adds another wrinkle to this problem, particularly for cash-constrained start-ups. For such start-ups, the introduction of an on-hand product can generate additional funds to support the development of an advanced product. However, the lower performance of the on-hand product can negatively impact the perception of the firm’s future products and lower future profitability. Methodology: We study the trade-off between revenues that an on-hand product generates for research and development funding and the negative effect it has on future profits. We characterize the optimal introduction timing of the on-hand product as a function of the financial resource constraints, the interdependence between these sequential products and the cost of development. Results: We identify important differences between the optimal product introduction strategies of a start-up and an established firm. Specifically, although it is always optimal for an established firm to accelerate the launch of a better-quality on-hand product, a start-up might find it optimal to delay its launch. The impact of technological failure and different forms of learning on the optimal strategy of the start-up are also explored. We translate our analytical findings into a managerial framework and illustrate these results using examples from the pharmaceutical and medical devices industries.

Across establishments, within firms: worker’s mobility, knowledge transfer and survival

We analyze the recruitment strategies and the survival of newly created establishments that are affiliated with pre-established _rms. For the new establishments, the existence of ports of entry as well as the importance of internal and external recruitment is assessed. Being affiliated with a pre-established firm may be a source of competitive advantage and improve the new plant’s chances of survival as the parent firm may supply the newly created unit with expertise and firm-specific knowledge. In this research we suggest a channel for knowledge transfer that has been little addressed in previous literature: within firm and across establishments mobility of workers. As firm-specific knowledge is mainly embodied and non-tradable, we suggest that it can be successfully transferred to the new unit embodied in the workers that are internally recruited. We find that internally transferred workers, particularly skilled workers hired at high-rank jobs play an important role in improving the survival of new establishments.

Why foreign STEM PhDs are unlikely to work for US technology startups

Visa policies to retain United States-trained STEM PhDs are of central importance to national innovation and economic competitiveness. There is also growing interest in “startup” visas that stimulate entrepreneurial activity and job creation, particularly in technology sectors. However, there is little understanding of how visa policies might influence foreign PhDs’ employment in technology startups. This study investigates differences between 2,324 foreign and US PhDs from US research universities using a longitudinal survey of individuals’ preferences and characteristics during graduate school and their subsequent employment in a startup or established firm. Among PhDs whose first job is industrial research & development, 15.8% of US PhDs work in a startup compared with 6.8% of foreign PhDs. Foreign PhDs are as likely as US PhDs to apply to and receive offers for startup jobs, but conditional on receiving an offer, they are 56% less likely to work in a startup. This disparity is partially explained by differences in visa sponsorship between startups and established firms and not by foreign PhDs’ preferences for established firm jobs, risk tolerance, or preference for higher pay. Foreign PhDs who first work in an established firm and subsequently receive a green card are more likely to move to a startup than another established firm, suggesting that permanent residency facilitates startup employment. These findings suggest that US visa policies may deter foreign PhDs from working in startups, thereby restricting startups’ access to a large segment of the STEM PhD workforce and impairing startups’ ability to contribute to innovation and economic growth.