The effect of human capital, innovation capacity, and Covid-19 crisis on Knowledge-Intensive Enterprises’ growth within a VC-driven innovation ecosystem

Abstract

Knowledge Intensive Enterprises (KIEs) constitute one of the most promising forms of entrepreneurial activity that can boost economic growth. Especially within the context of Innovation Ecosystems (IEs), KIEs play a central role in modern innovation research. The Covid-19 pandemic highlighted strongpoints and deficiencies in the broader ecosystems, the companies themselves, and most importantly, their founders and employees. Despite the external hindrances, many enterprises found growth driven by their ecosystems’ dynamic and their staffs’ capabilities. Combining insights from a quantitative survey, with actual growth data in the context of a Venture Capital (VC)-driven IE, we argue that enterprise profile - as defined by its innovation capability and its members’ personal, organizational, and demographic characteristics – affect KIE growth potential, and actual growth. In addition, we argue that both enterprise profile, as well as KIE growth, affect its members’ emotional reaction to the Covid-19 crisis, in terms of worry, hope, and optimism.