Abstract
This study examines the business networks and localization effects for new technology-based firms (NTBFs) in the context of innovation performance (the number of patents and product differentiation). In this regard, the study includes 28 variables. A survey was conducted in 2016 with 401 Swedish NTBFs that were small and young (the employment mean was 1.80 and the average age of each firm was 28.3 months). The biggest category of NTBFs was knowledge-intensive high-technology services, followed by medium high-technology manufacturing, and high-technology manufacturing. Hypotheses on how business networks and localization are related to innovation performance were tested using principal component analysis, correlation analysis, and regression analysis. The results show that the primary significant factor for innovation performance regarding business networks and localization dimensions are professional network services, while industrial and regional areas also have a positive relationship on product differentiation. Our study also shows that innovation performance enhances firms’ abilities to access external financing through professional network services (e.g., venture capital companies).
Highlights
1.1 BackgroundNew technology-based firms (NTBFs) need to collaborate with external stakeholders and build networks in order to acquire technical expertise and equipment to develop their technologies and innovation performance (e.g., Yli-Renko et al 2001; Davidsson and Honig 2003; Löfsten 2015; Ramírez-Alesón and Fernández-Olmos 2017)
New new technology-based firms (NTBFs) have attracted external financing in the early stages, our results reveal that external financing is significantly and positively related to innovation performance
Business networks and localization provide NTBFs with resources which are important for value creation that can be captured in the early phase
Summary
New technology-based firms (NTBFs) need to collaborate with external stakeholders and build networks in order to acquire technical expertise and equipment to develop their technologies and innovation performance (e.g., Yli-Renko et al 2001; Davidsson and Honig 2003; Löfsten 2015; Ramírez-Alesón and Fernández-Olmos 2017). Research has suggested and argued that a firm’s network resource endowments, which vary considerably, influence its competitive advantage (Gulati 1999; Stuart et al 1999; Ahuja 2000). Business networks can offer firms access to necessary assets and equipment for technology and the development of patents. Other scholars argue that business localization, as a facilitator of network creation, provides easier access to ideas and technology transfer (Deeds et al 2000). Other scholars argue that business localization, as a facilitator of network creation, provides easier access to ideas and technology transfer (Deeds et al 2000). Santoro and Gopalakrishnan (2001) showed that trust, geographic proximity, and flexible university policies for intellectual property rights, patents, and licenses are strongly associated with greater technology transfer activities
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