Development Of New Technology-based Firms Research Articles

Impact of initial business model on the growth trajectory of new technology-based firms: a path dependency perspective

Impact of initial business model on the growth trajectory of new technology-based firms: a path dependency perspective

Sustainability-Oriented Innovation Foresight in International New Technology Based Firms

Rapid technological advances give rise to the development of New Technology-Based Firms (NTBFs) which are focused on technology-based business models. One of the concerns is the changing pace of technology adoption and its impact on shortening the life cycle of goods and services based on technology. Technology tends to create more integration among communities, businesses, goods, and services. This integration can be seen in the substantial increase of firms, especially NTBFs, striving to improve international relations. In this regard, addressing the sustainability dimensions in light of technological change is of universal interest. Some studies highlight the role of technology in terms of its environmental impacts, whereas others describe technology as the main driving force of businesses towards innovation, which can lead to sustainability. This paper aims to examine international NTBFs to determine the factors, key drivers, and uncertainties impacting sustainability-oriented innovations concerning their encounter with technology and ultimately plan future scenarios for international NTBFs based on sustainability-oriented innovations. The description of the scenarios shows the importance of innovation development in digital technologies and the expansion of international relations, which is realized by using digital platforms. In addition to accelerating knowledge and innovation development to gain more key partners, we would observe target market expansion, cost reduction, and sustainability growth for international NTBFs. Identifying drivers and uncertainties and the future-oriented approach of this research provide insight to International NTBFs owners into realizing sustainability-oriented innovation by increasing their awareness of the opportunities and interventions to build capacity at the conceptualization and project management levels.

The Emergence and Performance of New Technology-Based Firms in Nigeria

New Technology-Based Firms (NTBFs) are one of the key actors within the National System of Innovation. They are firms/businesses based on the exploitation of an invention and they play crucial roles in the processes of bringing new ideas or innovations to the market and by extension, contributing to economic growth. This paper provides empirical evidence on the emergence and performance of NTBFs in Nigeria. A survey design was used to collect data from NTBFs in the selected Technology Incubator Centres (TICs). Data were analysed using both descriptive statistics and the ordinary least square technique. The research results show that research and development (R&D) activities are vital for the growth and development of NTBFs, but this activity is still at a very minimal level. Product price, the number of employees, research and development, access to credit facilities, and the cost of raw materials are statistically significant in explaining the performance of NTBFs. The recommendations for ensuring the improved performance of NTBFs in Nigeria include the increased collaboration among NTBFs, universities, and research institutes, firms to spend at least 40 percent of their profit on research and development that relates to the improvement of their products, and the improvement in the level of the production process to enhance productivity and competitiveness.

The Value of PhDs: How the Presence of PhDs in Founding Teams Increases the Attractiveness of Startups for Corporate Investors

The creation and development of new technology-based firms (NTBFs) is at the core of national prosperity, and constitutes a key activity of the innovation policies of advanced and developing economies. Many of these companies are founded by postgraduates that hold a doctorate (PhDs). Governments foster the creation of NTBFs by PhDs to take advantage of the stock of knowledge which exists in universities and research centers. It is assumed that founders with a high level of specialization and knowledge, such as PhDs, will bring strong competitive advantages to the companies they found. The literature in this regard, however, is scarce and inconclusive. We have studied the role of PhDs in founding teams of NTBFs in a specific kind of entrepreneurial process: corporate venturing. Our conclusions suggest that companies with PhDs are significantly more attractive to corporate venture capital. Corporate venturing has a higher propensity to invest in NTBFs with PhDs in the founding teams, and these companies concentrate a higher number of corporate investors, in a kind of accumulative effect.

Exploring the Role of Project Management in Product Development of New Technology-Based Firms

This article explores the role of project management in the product development of new technology-based firms (NTBFs). For this qualitative study, we conducted a series of semi-structured in-depth interviews with 36 NTBFs. Consequently, we discovered a set of practices that are applied in the new product development (NPD) process and, based on entrepreneurs’ perceptions, link them to the success dimensions of NTBFs. Our findings indicate that entrepreneurs apply Lean startup and agile approaches to project management to a large extent. Moreover, we identify key contingencies for approach selection and propose a framework for NPD in an entrepreneurial context. The study contributes to the literature by integrating project management, new product development, and entrepreneurial perspectives.

STAKEHOLDER ROLES IN BUSINESS MODEL DEVELOPMENT IN NEW TECHNOLOGY-BASED FIRMS

This paper examines the roles of external stakeholders in the business model development of new technology-based firms (NTBFs) from the perspective of the founders. Based on a longitudinal study of two Swedish NTBFs, semi-structured interviews, including timeline mapping, were conducted with the founders of each firm over a period of two years, drawing on retrospective data from the first year of founding. The findings reveal that stakeholder interaction is first initiated based on the position the stakeholder has in relation to the firm, whereas what tasks the stakeholder perform in relation to NTBF resource needs has greater consequences for the business model development. The roles of stakeholders further help shape founder perceptions of how to do business, although such influence may be limited over time. The results provide valuable insight into the influence of founders’ perceptions and firms’ business networks on the business configuration of NTBFs, revealing that business model development is both endogenous and exogenous. Specifically, the study provides some original insights around which roles stakeholders play in the early development of the business model and why these roles are necessary at certain points in time.

Os Papéis dos Agentes de Suporte a Empresas de Base Tecnológica

Resumo O principal papel dos agentes de suporte à inovação (ASIs) é apoiar o desenvolvimento de empresas de base tecnológica (EBTs). Entre estes agentes destacam-se aceleradoras de empresas (AEs), incubadoras de empresas (IEs) e parques tecnológicos (PTecs). Ainda são recentes na literatura artigos que abordam estes três tipos de agentes em conjunto, o que indica que este é um tema que atualmente começa a se desenvolver, sendo, todavia, promissor em vista da importância econômica do desenvolvimento de EBTs e de ambientes de inovação. Com efeito, o objetivo deste artigo é analisar os papéis, os pontos comuns e as diferenças entre estes três tipos de ASIs, no que tange ao seu apoio ao desenvolvimento de EBTs. A abordagem utilizada é a qualitativa, em que foram obtidos dados de um total de vinte e três agentes, distribuídos entre AEs, IEs, PTecs e EBTs, localizados no Brasil, ou em Portugal. Como resultado, apresenta-se uma visão sistemática e abrangente destes três tipos de ASIs, baseada nos construtos: espaço físico e serviços básicos, gerencial, aculturação e redes de relações sociais. Adicionalmente, como implicação prática, conclui-se que este artigo pode ser utilizado como fonte de referência para o desenvolvimento, tanto de ASIs quanto de EBTs.

O papel dos agentes de suporte à inovação no desenvolvimento de empresas de base

O objetivo deste artigo e analisar o papel de agentes de suporte a inovacao (ASIs) no desenvolvimento de empresas nascentes de base tecnologica (ENBTs) a partir do conceito de assimetria de informacoes entre os agentes economicos. Para isso, foi utilizada a abordagem qualitativa de analise comparativa de multiplos casos em duas aceleradoras de empresas, duas incubadoras e dois parques tecnologicos. De acordo com os dados obtidos e sua posterior analise, foi verificado que os ASIs contribuem para as ENBTs da seguinte maneira: distribuindo informacoes do mercado, reduzindo, assim, seu custo de pesquisa; favorecendo a formacao de suas redes de relacoes sociais; emprestando sua reputacao; e reduzindo o custo de pesquisa de agentes de mercado no que tange o acesso as ENBTs. Nao obstante, esses papeis variam de acordo com a natureza do ASI investigado. De resto, esta pesquisa pode ser usada como referencia para ambos, ASIs e ENBTs, no que se refere ao desenvolvimento de aspectos informacionais e sociais desta ultima.

Identifying and ranking the policies of the science and technology parks to support new technology-based firms

Due to the overwhelming complexity of the business environment, many new technology-based firms (NTBFs) face the risk of going out of business. Science and technology parks (STPs) as a keystone organisation in the innovation ecosystem have mission to support stabilisation and development of NTBFs. However, STPs have limited resources, it is necessary to identify the entire supportive requirements of these firms and to prioritise them. Next, the supporting actions can be initiated according to their priorities. In this research, 79 support requirements of NTBFs were identified and grouped into 14 main categories. To prioritise these 79 requirements, 18 chief executive officers of NTBFs (within the Paradise and Tehran University STPs) were surveyed. The surveys were analysed using fuzzy TOPSIS method to rank the requirements. In conclusion, it was indicated that supporting NTBFs in marketing and providing awareness of market changes are of higher priority compared to other supportive actions.

How the Firm networks Affect the foundation and development of NTBF: Empirical evidence on the Propositions of Hite and Hesterly

Network has drawn attention from different fields and its contributions on the businesses have been discussed; however, Hite and Hesterly (2001) propose that it is significant for companies to change from closed networks to dispersed networks as the firm grows. Similarly, scholars argue that firm network, development and resources are “co-evolved”. These authors further state that changing of networks are affected by (a) individual difference of entrepreneurs, (b) industrial differences for resources, and (c) difference in the compositional quality. Thus, this paper tests their propositions to see “why” it is essential to change networks and to pinpoint “what”, “when” and “how” the necessity is needed in the formation and development of New Technology Based Firms (NTBFs). To achieve the objectives, four case studies are developed and the empirical results show that the origin of firm network determines the necessity for changing networks, the quality of network member affects the changes but individual difference of technology-based entrepreneur may or may not affect the changes.

The development process of new technology-based firms

This work investigates the paths of development of new technology-based firms (NTBFs). The existing literature on new venture development processes is largely built on a linear stages approach. Recent insights however, indicate that in order to better grasp the firms’ development routes such linear models per se are no longer sufficient. This work investigates how firms evolve through time with respect to the main variables which literature highlight as strategic for the growth of firms. By clustering the firms in similar organisational configurations at constitution and some years after being on the market, the results highlight the complexity and variety of firm development processes. Our findings contribute to an understanding of the dynamics of the entrepreneurial process.

Specialisation versus diversification: perceived benefits of different business incubation models

Business incubator initiatives are a widespread policy instrument for the promotion of entrepreneurship, innovation and the development of new technology-based firms (NTBFs). Recently, there has been an increasing tendency for the more traditional diversified incubators to be superseded by incubators focusing their support elements, processes and selection criteria on firms from one specific sector, and its particular needs. Despite the increasing importance of such specialised incubators in regional innovation strategies, the question of whether they are advantageous has neither been investigated empirically nor discussed theoretically in detail. Drawing on large-scale survey data from 161 firms incubated in either diversified or specialised incubators in Germany, we investigate the benefits to firms of being part of a specialised business incubator as opposed to being part of a generalised business incubator. The investigation of the value-added contribution of specialised incubators, in particular regarding hardware components, business assistance, networking and reputation gains, reveals considerable differences compared to the more diversified incubation model.

The role of incubator interactions in assisting new ventures

Past literature on the development of new technology-based firms (NTBF) within business incubators suggests that the incubation process of these ventures includes both business and technical assistance. In addition, past literature suggests that this assistance is accessible through direct and networking interactions with the incubator management. However, research on the influence of each of these types of interactions on the types of beneficial assistance gained by ventures is unclear. Drawing predominately from social capital theory, this study examines the role of counseling and networking interactions with incubator management on both beneficial business and technical assistance for NTBFs. Results of this study suggest that business assistance, in the form of venture learning about buyer preferences, is best enabled through counseling interactions with incubator management. Learning buyer preferences was not enabled through networking interactions. Technical assistance, in the form of venture learning technological know-how skills, is best enabled through networking interactions with incubator management. Learning technological know-how skills was not enabled through counseling interactions. This study, therefore, highlights the importance and a clearer distinction of how both counseling and networking interactions with incubator management enable the incubation process of new ventures.

Explaining incubators using firm analogy

Incubators are initiated to accelerate the development of new technology-based firms. Policy actors see them as a tool to initiate or revive innovativeness in regions and universities as a way to commercialize research results. However, even though the intended results of the incubator are good it is not known how the incubator should be managed and organized in order to achieve this end. When faced with a new type of organizations analogies can provide insights gathered from other contexts. To contribute to the further understanding of incubators this paper discuss the implications, in terms of highlighted dimensions and further clarifications needed when using the analogy of a firm. The paper uses empirical findings from six incubators. The discussion shows it is not clear who is the actual customer of the incubator. For example, can the policy actors that provide the funding to the incubator be seen as a customer paying for the service of regional revival and the NTBFs customers when their fees are not in relation to the services they are provided? In the discussion it is suggested that the incubator can have many customers with different value creation processes or no customers depending on the viewpoint taken.

Assessing the needs of new technology based firms (NTBFs): An investigation among spin-off companies from six European Universities

New technology based firms (NTBFs) play a major role in the development and commercialisation of new technologies and the development of national economies. Using an entrepreneurship-in-networks approach, this paper examines the early stages of the development of these companies, i.e. from opportunity recognition through opportunity exploration. Case study data was collected on 22 NTBFs from six European universities. The findings highlight specific needs related to five functional areas of importance to NTBFs, namely: R&D, market development and sales, organisation and governance, finance and administration, and production/operation. These needs are reported for both the pre- and post-foundation phases and can thus be utilised by both entrepreneurs and support agencies to guide the development of NTBFs.

Science Parks and the Performance of New Technology-Based Firms: A Review of Recent U.K. Evidence and an Agenda for Future Research

Science parks were established to stimulate the formation and development of new technology-based firms (NTBFs). Despite the potential importance of these institutions as a mechanism for generating technological spillovers and employment growth, there has been little systematic analysis of their impact on NTBFs. In this paper, we review some recent evidence comparing the performance of firms located on and off U.K. science parks. This preliminary evidence suggests that the "returns" to being located on a science park are negligible. We conjecture that these results may be due to imprecise estimates of these returns and may also be masking important differences in the returns to different types of science parks. In addition, we outline an agenda for additional research on the effects of these institutions on NTBF performance.

Wachstumsdeterminanten junger innovativer Unternehmen: Empirische Ergebnisse für West-Deutschland / Growth Determinants of Young Innovative Firms: Empirical Results for West-Germany

Zusammenfassung Die Ergebnisse der multivariaten Analysen zur Beschäftigungsdynamik und dem Wachstumspotential junger innovativer Unternehmen lassen erkennen, daß junge innovative Unternehmen signifikant höhere Wachstumsraten erzielen als junge Unternehmen mit traditionellen Produkten. Die Schätzergebnisse des bivariaten Tobit-Modells zeigen, daß sowohl innovative als auch nichtinnovative Unternehmen mit einer suboptimalen Größe gegründet werden und daher in den ersten Lebensjahren hohe Wachstumsraten erzielen, die mit dem Alter und der Größe abnehmen. In diesem Zusammenhang wird die Gültigkeit von Gibrat’s law verworfen. Effekte gehen auch von der Rechtsform der Unternehmen aus, wobei Unternehmen, die als Kapitalgesellschaften gegründet werden, höhere Wachstumsraten erzielen als Personengesellschaften. Ein positiver Zusammenhang stellt sich hinsichtlich der Beteiligung externer Unternehmen ein, d. h. junge Unternehmen an denen weitere Unternehmen beteiligt sind, erzielen c.p. höhere Wachstumsraten als eigenständige Unternehmen. Zusätzlich zu den unternehmensspezifischen Einflußfaktoren gehen gründerspezifische und unternehmensexterne Merkmale in die Wachstumsschätzungen ein. Dabei spielt das individuelle Humankapital der Gründer eine erhebliche Rolle. Von Vorteil ist ein technisches und ingenieurwissenschaftliches sowie betriebswirtschaftliches Know-how. Darüber hinaus zeigt sich hinsichtlich des Einflusses unternehmensexterner Faktoren ein negativer Effekt zwischen dem Verdichtungsgrad der Kreise und dem Wachstum der jungen Unternehmen.

Growing the Linköping Technopole—A Longitudinal Study of Triple Helix Development in Sweden

In the context of successful examples of regional development in Sweden, the Linkoping region is often named. Whilst maintaining a historical reputation for culture and learning, Linkoping has developed, during the last thirty years, as a major centre within Sweden for technological growth, especially in the creation and development of new technology-based firms. This high technology environment has been further enhanced by the presence of a growing international university, a number of significant multinational high-technology companies and the location of several public sector research establishments. Previous research on regional development suggests that this milieu could be characterised as a ‘technopole,’ namely an arena where these organisations co-operate with each other in a formal or informal way to develop the technological capability of the region. This paper sets out to examine and describe the different ‘actors’ that have contributed to the recent development of Linkoping as one of the fastest growing technological regions in Europe. The linkages between the actors are examined in detail. The results of the study indicate that one of the most important actors behind the positive development is the university. In addition, the development that has taken place over the last thirty years can be likened to a spiral where success begets success to foster a positive entrepreneurial climate.

Assessing value-added contributions of university technology business incubators to tenant firms

This paper assesses the value-added contributions of university technology business incubators (UTBIs) to their new technology-based tenant firms. The business incubator is widely believed as providing a nurturing environment for new business start-ups. However, the role played by university relationships in supporting the development of new technology-based firms (NTBFs) has escaped systematic review in the US due to a lack of historical data. To fill this gap, this article presents empirical data on UTBIs by focusing on their value-added dimensions which include typical incubator services along with university-related inputs. The study is based on a national survey of six representative UTBI facilities, providing an insight into the value-added aspects as perceived by the clients. It concludes that several UTBI services, specifically some of the university-related inputs such as university image, laboratories and equipment, and student employees add major values to the client firms, making the UTBI a viable strategy for nurturing NTBFs.

US university-sponsored technology incubators: an overview of management, policies and performance

Despite the increased worldwide interest in the university-sponsored technology incubator (USTI) as a mechanism for supporting the development of new technology-based firms (NTBFs), there is a dearth of empirical evidence on determinants of their best organization and management, and policy practices. This paper presents results from a national survey of more than 30 five-year and older American USTIs. The study focused on a sample comprising three state university-sponsored and three private university-sponsored facilities, generally viewed as being successful. The USTI practices and performance are explored using several key dimensions: organizational design, tenant performance review, funding sources, targeted technologies, strategic operational policies, services and their value-added component, and growth of the client firms. A comparative review of these dimensions reveals that there are no significant differences based on the type of sponsorship — state or private. It is concluded that, given the fuller utilization of university resources by the application of sound policies and business-management practices, the USTIs appear to provide an environment conducive to the development of NTBFs. Finally, it is recommended that universities must build their technology incubator programs by setting reasonable objectives and management policies that will encourage tangible results consistent with the new mission requirements of an entrepreneurial university.