Performance of new technology-based firms in the Federal Republic of Germany at the stage of market entry*

Abstract

This paper is based on studies accompanying the German federal programme ‘Support of New Technology-Based Firms’ and the 246 young companies founded with the help of this support up to june 1988. It examines in detail the performance of 45 companies at the stage of market entry of their new products or processes and the growth perspectives of these companies. It tries to explain this performance by indicators of technology and its applicability, need and supply of capital, qualification of the team of entrepreneurs, and by activities preparing the market entry. Success at the stage of market entry - understood as running sales of equal products or services to different customers - is strongly influenced by the necessity for customer specific work before and after sales and by the novelty of either technology or detail solution within a known technology. These factors also determine the possibilities for advanced services to customers (so preparing the market entry), the need for capital and the difficulti...