Innovative Start-up Companies Research Articles

Analysis of New Energy Vehicles Taking Tesla as an Example

In the current context marked by a growing number of start-ups, the lack of clearly successful enterprises is not a random occurrence, but rather highlights complex underlying reasons that require thorough investigation. This paper undertakes an investigation focused on the case study of Tesla, integrating perspectives from the fields of business and economics to analyze the complex factors driving the success of innovative start-up companies. This study employs a comprehensive literature review method to emphasize the significant influence of departmental contributions in shaping tactics that foster success. This research not only enhances the comprehension of the strategic formulation process in present-day start-ups but also has the potential to act as a guiding reference for rising companies. Drawing on a comprehensive review of Tesla's trajectory, this research offers valuable insights to future start-ups, enabling them to develop strategies that are well aligned with achieving success.

Knowledge Spillover Effects and Employment Productivity in the Innovative Startups: Evidence from Italy

This paper analyzes the determinants and effects of technological catch-up and knowledge spillover effects on employment productivity in the Innovation Startup Segment in Italy using a sample of 260 Innovative Startup companies. Estimates indicate that regional specialization provides the highest potential for employment productivity gains, while higher levels of competition and higher regional diversity suppress the prospects for knowledge spillover effects to develop. Particularly, the analysis using the comprehensive sample of firms indicates the presence of forces leading to output per worker convergence at the national level, i.e., technological catch-up is present at the per-worker level; yet, the overall value of production convergence across regions is not present. We also detect the presence of Spatial Dependency in relation to the neighboring firms. That is, there is support for weak convergence across regions in favor of the Marshallian hypotheses. However, sectorial estimations for the Services, Information Technology, and Manufacturing sector indicate the presence of large differences in terms of technological catch-up effects.

Strategic prospects for the development of innovative startup companies in the Primorsky Krai

Subject. This article discusses the prospects for the development of innovative companies in the Primorsky Krai, taking into account regional specifics and competitive advantages, as well as the support measures taken at the federal level. Objectives. The article aims to analyze the present-day regional strategic trends in measures to support innovative companies and develop recommendations for their improvement. Methods. For the study, we used the methods of logical analysis, synthesis, comparison, aggregation by specific feature, and systematization. Results. The article summarizes the tools of government support for start-up companies and updates the requirements for applying the theory and practice of strategic planning in this field of activity, as well as regional strategic advantages and opportunities for further development of technology startups in the Primorsky Krai. Conclusions. The development of innovative technological start-ups is a catalyst to unlock synergies of both sectoral and regional development. The combination of strategic perspectives and implemented solutions by start-up support institutions will help form the basis for the future trend in the development of innovative infrastructure in the Primorsky Krai.

Betting on the future: how to build antifragility in innovative start-up companies

While after a crisis, organizational robustness and resilience are associated with the return to pre-shock conditions, antifragility is characterized by the tendency to take advantage of the shock to improve the organization’s position. Understanding how to create antifragility is important to ensure rapid recovery from a crisis. This is especially true for innovative start-ups, which if they are particularly fragile also have the opportunity to improve their unstable situation by adapting to the new context. However, studies on the subject are rare. To fill this gap, a survey was carried out with 181 Italian innovative start-ups to investigate the relationship between antifragility and intangible resources, tangible surplus resources, and absorptive capacity. The results show that antifragility is supported by a combination of tangible and intangible resources that can help innovative start-ups thrive when other organizations succumb.

Green Production as a Factor of Survival for Innovative Startups: Evidence from Italy

Many studies have analyzed empirically the determinants of survival for innovative startup companies using data about the characteristics of entrepreneurs and management or focusing on firm- and industry-specific variables. However, no attempts have been made so far to assess the role of the environmental sustainability of the production process. Based on data describing the characteristics of the Italian innovative startups in the period 2009–2018, this article studies the differences in survival between green and non-green companies. We show that, while controlling for other confounding factors, startups characterized by a green production process tend to survive longer than their counterparts. In particular, we estimate that a green innovative startup is more than twice as likely to survive than a non-green one. This evidence may support the idea that environmental sustainability can help economic development.

Innovative startups in Italy. Managerial challenges of knowledge spillovers effects on employment generation

Purpose This paper aims to investigate the impact of knowledge spillover effects (KSE) on employment levels using a sample of 245 Italian Innovative startup companies created as a result of the legislative changes of Law Decree 179/12 introduced in Italy in 2012. Design/methodology/approach This study uses a parsimonious model with the employment level as the dependent variable. The paper tests for the impact that the measures of industry competition, specialization and diversity have on the level of employment in the Innovative Startup sector in Italy. The data uses a sample of 245 firms, across 20 geographic regions in Italy for three economic sectors at the 2-Dig NAICS classification. Findings The empirical results provide evidence in favor of regional specialization as the main force to create and transfer knowledge resulting in increased employment; while higher levels of competition and a more diverse regional production bases result in lower firm employment levels. Employment levels for these firms are also time-dependent, and thus mainly determined at the time of the firm’s creation. This study also found a lack of technological convergence across regions, that are inherent regional differences are not bridged by knowledge spillover effects. Research limitations/implications This paper is based on a sample of Italian Innovative Startups and consequently, further research with a potentially larger sample and, perhaps, a sample across countries could also shed some light on the issues relating to KSE and their effects on employment generation and firm formation. Practical implications From a practical point of view, the results indicate that regional disparity and limited transmission of KSE across regions remain an impediment to the flow of knowledge. This in turn may limit the development of entrepreneurial activities and further development of new firms. Practical implications regarding knowledge management indicate that firms face time and spatial challenges when developing, transferring and acquiring knowledge. In sum, the evidence points out in favor of existent and persistent regional heterogeneity in terms of economic and technological specialization as sources of employment. Originality/value This research adds to the empirical evidence focusing on the effects of knowledge spillover effects in the Innovative Startup segment of the economy. This research highlights the applicability of knowledge spillover effects accounting for levels of industry competition, specialization and diversity. We also provide a measure of cluster formation and concentration at the sectoral and regional levels. Thus, the research provides a better understanding under which conditions knowledge is more likely to have positive or negative effects on employment generation.

Reporting in risk-oriented startup company management

A large number of risks is one of the main features of a startup company. Avoiding risks and minimizing their negative consequences is possible if there is a high-quality and complete information resource for the risk management purposes. The article identifies the directions of improvement of information support of risk-oriented management of a startup company, as well as the development of organizational and methodological provisions of the internal management reporting of the innovative enterprise on the main results of its activity in risk conditions. In order to improve the risk-oriented management of a startup company, the internal management reporting forms were developed (Management balance of the startup company; Management report on the profits and losses of the startup company; Risks of startup company business activity and costs incurred to minimize them; Analysis of changes in the cost of an innovative product after its improvement and the Working Capital Report of a startup company). Taking into account the specifics of innovative companies' activities in the suggested reporting will help to increase the efficiency of risk management of a startup company and optimize the cost component of the risk management system. Prospects for further research have identified the need to develop organizational and methodological support for the preparation of financial statements in terms of disclosure of information about the risks of innovative startup companies and their consequences, including the search for areas of improvement of the management report.

Assessment of Business Angel Activity in Northern European Countries

Business angels are one of the main sources of financing for innovative start-up companies. In this regard, it has been discussed in the existing literature that policy-makers and stakeholders are in great need for a tool to measure the level and scale of the development of the business angel market. It has been also mentioned that business angel activity in different countries is highly heterogeneous. However, so far in the existing literature the comparison of the level of business angel activity in the countries of Northern Europe has not been made. Therefore, the aim of our research is to compare the level of the visible business angel market activity in Northern European countries. To conduct a comparative assessment of the business angels' activity, we used the Business Angel Activity Index calculation methodology developed by us. In this methodology, we justified the set of indicators and the weight of indicators for the calculation of the composite index. We have discovered that in 2016 – 2017 Estonia and Finland demonstrated the highest level of business angel activity among the countries of Northern Europe. We have also established that population size, the size of economy and GDP per capita rate in the Northern European countries are not the main factors that have a considerable impact on the level of business angel activity. Moreover, we confirm that business angel activity in the countries of Northern Europe is highly heterogeneous. We have also found that high scores of the ratio of the number of business angels to the working population in particular countries do not guarantee high level of business angel investment activity in these countries. The paper also discusses the number of factors ensuring high business angel activity.

Venture Capital financing for innovative start-up companies in Nigeria

Venture Capital financing for innovative start-up companies in Nigeria

Relation between start-ups’ online social media presence and fundraising

PurposeThe purpose of this study is to examine the emergences of social media such as Facebook, Twitter and Instagram have changed the way human beings communicate and interact. In the past few years, this has become crucial in the context of business, especially in start-up fund raising. Access to venture capital financing is a crucial issue in the entrepreneurial finance literature. To further explore the use of social media for entrepreneurs, the authors have explored how entrepreneurs use social media for fund-raising purposes. The authors have used Application Programming Interfaces (APIs) to collect entrepreneurs’ funding data from Crunchbase and entrepreneurs’ social media data from Facebook and Twitter. The results show that social media is significant for start-ups in their success or failure in fund raising. Investing energy into utilizing online social media and exhausting these platforms consciously contributes to the financial success of start-ups. Therefore, start-ups which are popular among online fans and followers can manage to raise larger amounts of funding in the early stages.Design/methodology/approachThis research relies on a wide range of quantitative data, which was obtained from three different online sources which includes Facebook, Twitter and CrunchBase. The use of a variety of internet technologies have been linked to increases in individuals’ social network diversity, which likely increases access to social capital at the individual level (Hampton and Wellman, 2003). The dataset was retrieved by using APIs, which enables the collection of novel metrics, from various sources that provide a well-structured dataset (Priem and Hemminger, 2010). Hypotheses were tested on a longitudinal dataset from 2000 to 2013, comprising general and investment data and social media metrics of start-ups. First, a sample from the database was selected to ensure data availability and reliability. After sampling, all the selected companies’ Twitter and Facebook activities were observed and metrics were analysed. SPSS was used to conduct correlation and regression analyses.FindingsThis study analysed whether start-ups’ social media convention is able to influence investors’ choices, especially the amount of total funding given. The paper showed that innovative start-up companies were able to benefit from communicating on social media platforms. Start-ups, which were using Facebook and Twitter effectively, focusing on valuable social media metrics, received larger amount of funding in total. Furthermore, it was observed that as their business grew, they intended to put more effort into online social networking. It confirmed the idea that businesses are using social media consciously.Originality/valueThis is the only paper that the authors could find that examines the relationship between fundraising and activity on social networks.

Analysis of Innovative Start-Up Companies – Case of Košice Region

<p><strong>Purpose:</strong> Support policy for start-up companies is being developed nowadays in Slovakia, but so far there has hardly been any research focuses on this issue. Therefore, the aim of this article is to identify, what are the specific needs and funding sources of start-up companies according to their stage of development.<br /><strong>Methodology/Approach:</strong> This paper used questionnaire empirical approach. The research was conducted in the Košice region. The sample of 47 innovative start-up companies was obtained and analysed using statistical measurements such as the Pearson’s chi-square test and the correspondence analysis method. <br /><strong>Findings:</strong> The results reveal that start-up companies at their initial phase of development mostly use bank loans as a funding source of their activities, but they opt also business angel as their source of funding at start phase of development. The findings further discover relation between the stage of the development of start-up company and its specific need. Additionally, research probes that collaboration with other firms or universities has a positive impact on prosperity of the start-up company in terms of higher profitability and better access to funding.<br /><strong>Research limitation/Implication:</strong> The Košice region is not an area, where representative survey in the field of start-up companies can be held nowadays. It relates to small market of innovative and creative solutions and goes with not so developed incentives to support start-up companies in their initial phase of development too. Thus, all the results and the outcomes coming from the dataset can be considered rather <span style="background-color: #f5f6f5;">demonstrational</span> than complex.<br /><strong>Originality/Value of paper:</strong> We show the specific needs and funding sources for start-up companies in the Košice region according to their stage of development and thus identify, which aspects government representatives should pay attention to and what should be taken into consideration when designing policy initiatives oriented towards support of start-up prosperity. Furthermore, we bridge the gap between increased attention to analysis of start-up companies and no effort made to analyse them in the Košice region.</p>

Creative workplace characteristics and innovative start-up companies

PurposeThis study aims to investigate the characteristics of the physical work environment that are known and used in practice to promote creativity for innovative start-up workplaces. The first part of the study identified these characteristics from a content and visual analysis, and examined the current state of implementation of these characteristics in the work environments of innovative start-up companies. The second part of the study examined criticalness and practicality of these characteristics in the workplace with a group of experts in the workplace design, evaluation and management.Design/methodology/approachA content and visual analysis for written and visual images was conducted to identify a comprehensive list of characteristics of the physical work environment critical to creativity of the workplace. With the seven characteristics identified, an instrument was developed and interviews were conducted to assess the physical work environments of 22 innovative start-up companies in Michigan. Following up the interviews, an expert group was formed with 26 professionals including architects, interior designers, facility managers and CEOs. A survey was conducted with them to understand the significance and implementation issues among the seven characteristics.FindingsThe most frequently incorporated characteristics in the innovative start-up companies in Michigan were spaces for idea generation, technology interface for collaboration and spaces for a short mental break or social hangout. The three most important physical work environmental characteristics for companies to produce creative, innovative ideas and products/services for growth and market competitiveness were balanced layout, technology interface for collaboration and spaces for idea generation.Originality/valueThe study provides a comprehensive framework to evaluate creative workplace regarding the physical environment. It also offers insights on the work environments of the innovative start-up companies for increased creativity and innovation performance in the workplace.

Управление созданием прорывных продуктовых инноваций в сформировавшейся компании

Situational approach in management and continuous experimentation becomes a style of doing business for creators of breakthrough new products and innovative start-up companies. A company that successfully started with a breakthrough product, and developed into successful structured business, after some time, would start to lose its ability to create breakthrough new products. Internal corporate procedures and business processes, including the process of creating a new product become more formalized. Exploratory type of works at the initial stage, full of uncertainties in the process of new product development, is poorly formalized and requires flexible approach in management. Creative chaos that was on a start-up stage and that feed teams with fresh ideas disappears. Fireplace for creativity fades. Loss of this competitiveness is a serious argument to develop new approaches to arrange process of creating new products in a mature stage of business development. In the article based on experience in new product development we explore this actual problem and propose a novel approach for the passage of the high uncertainty stage, called “the fuzzy front end of innovation”, to create innovative products in matured businesses.

Economic Downturn and Financing Innovative Startup Companies

This study examines how fluctuations in the amount of capital flowing into venture funds affect the financing of innovative startup companies and how economic downturns affect such financing. We argue that the nature of the economic downturn can cause differential effects on the investment pattern. We find that venture capital firms invest more in early-stage companies than in later-stage companies when the amount of capital flowing into the market increases. We also find that venture capital firms invest less in early-stage companies than in later-stage companies during an economic downturn associated with the real sector and that they invest more in early-stage companies than in later-stage companies during an economic downturn associated with the financial sector. This study contributes to the entrepreneurship literature by demonstrating how macroeconomic factors affect venture capital investment decisions. The study also delineates the implications of seeking market entry via venture capital financing by entrepreneurial companies.

Economic Downturn and Financing Innovative Startup Companies

This study examines how fluctuations in the amount of capital flowing into venture funds affect the financing of innovative startup companies and how economic downturns affect such financing. We argue that the nature of the economic downturn can cause differential effects on the investment pattern. We find that venture capital firms invest more in early‐stage companies than in later‐stage companies when the amount of capital flowing into the market increases. We also find that venture capital firms invest less in early‐stage companies than in later‐stage companies during an economic downturn associated with the real sector, and that they invest more in early‐stage companies than in later‐stage companies during an economic downturn associated with the financial sector. This study contributes to the entrepreneurship literature by demonstrating how macroeconomic factors affect venture capital investment decisions. The study also delineates the implications of seeking market entry via venture capital financing by entrepreneurial companies. Copyright © 2013 John Wiley & Sons, Ltd.

Innovation in Health Care: Time for a Gut Check

O the past several decades, advances in science and technology have yielded great strides in our ability to reat major medical conditions such as heart disease and cancer. he genesis of many of these technologies has been innovative iopharmaceutical, medical device, and diagnostic start-up ompanies often formed by physicians and researchers within cademic medical institutions and hospitals. These start-up companies often have taken on venture captal funding to complete product development and clinical rials. As a reward for successful clinical trials, these companies ere historically able to raise additional capital through muliple investment rounds and sometimes through an initial pubic offering of their stock to public investors. Indeed, there are several very successful examples of new herapies that followed this playbook in the area of gastroenerology including treatments for morbid obesity, hepatic enephalopathy, hepatitis C, reflux disease, and Barrett’s esophaus, all developed by small companies that effectively developed nd launched these products with the backing of high-risk nvestment capital and in concert with thought-leading physiians and inventors. Over the past 30 years, this ecosystem of physician, acaemia, start-up, and venture capital fostered a very successful ilieu for the advancement of innovation in health care and as yielded many new drugs and devices in use today by phyicians. Indeed, it has been shown previously that contrary to opular belief, venture capital returns from health care start-up nvestments actually have exceeded the returns from informaion technology and Internet investments since 2000 by a very ide margin.1 Today, however, we are at serious risk of dismantling this medical innovation ecosystem. There are 3 major reasons for this looming crisis in financing innovation in health care.

Academic entrepreneurship in knowledge and technology-based industries: the fundamental determinants at German research universities and universities of applied sciences

Research on the institutional-level determinants of academic start-up activity is mostly focused on research universities. Examining German Universities of Applied Sciences (UASs), this article illustrates that there are also other types of institutions of higher education that not only comprise a valuable potential for academic entrepreneurship, but are also externally expected and internally committed to breeding innovative start-up companies. Based on a number of secondary data sources, the authors argue that research universities and UASs are characterised by a number of idiosyncratic features that shape both the quantity and quality of Knowledge and Technology-Based (KTB) start-up activity in specific ways. Separate analyses of the determinants of academic entrepreneurship at 86 research universities and 99 UASs suggest that research universities and UASs bear complementary functions for innovative start-up activity in the German innovation system. The article concludes with implications for future research on the processes underlying academic start-up generation.

Pragmatic and Opportunistic Reuse in Innovative Start-up Companies

Both practitioners and academics often frown on pragmatic and opportunistic reuse. Large organizations report that structured reuse methods and software product lines are often the way to go when it comes to efficient software reuse. However, opportunistic that is, nonstructured reuse has proven profitable for small to medium-sized organizations. Here, we describe two start-ups that have opportunistically and pragmatically developed their products, reusing functionality from others that they could never have built independently. We demonstrate that opportunistic and pragmatic reuse is necessary to rapidly develop innovative software products. We define pragmatic reuse as extending software with functionality from a third-party software supplier that was found without a formal search-and-procurement process and might not have been built with reuse in mind. We define opportunistic reuse as extending software with functionality from a third-party software supplier that wasn't originally intended to be integrated and reused.