MTEI Seminar by Prof. Rosemarie Ziedonis, University of Oregon
Event details
| Date | 24.06.2013 |
| Hour | 12:00 › 13:30 |
| Speaker | Prof. Rosemarie Ziedonis, University of Oregon |
| Location | |
| Category | Conferences - Seminars |
"State Governments as Financiers of Technology Startups: Implications for Firm Performance"
Abstract:
U.S. state governments are active financiers of new science and technology companies. Yet little is known about the effects of state R&D funding on the performance of recipient ventures. This study provides new evidence based on competitive R&D awards administered by the state of Michigan from 2002 through 2008. We find strong and compelling evidence that state R&D awards enhanced the commercial viability (i.e., survival) of recipient firms, suggesting a relaxation of financial constraints. Among firms with scores near the discontinuous funding threshold, our estimates suggest that awardees were 15% to 25% more likely to survive three years after the competition than otherwise comparable applicants that sought but failed to receive an award. We also find that receipt of state R&D funding enhanced the follow-on financing for these new ventures, but only for those with more onerous information challenges in entrepreneurial capital markets.
Keywords:
Innovation; government R&D programs; entrepreneurial finance; regression discontinuity design
Abstract:
U.S. state governments are active financiers of new science and technology companies. Yet little is known about the effects of state R&D funding on the performance of recipient ventures. This study provides new evidence based on competitive R&D awards administered by the state of Michigan from 2002 through 2008. We find strong and compelling evidence that state R&D awards enhanced the commercial viability (i.e., survival) of recipient firms, suggesting a relaxation of financial constraints. Among firms with scores near the discontinuous funding threshold, our estimates suggest that awardees were 15% to 25% more likely to survive three years after the competition than otherwise comparable applicants that sought but failed to receive an award. We also find that receipt of state R&D funding enhanced the follow-on financing for these new ventures, but only for those with more onerous information challenges in entrepreneurial capital markets.
Keywords:
Innovation; government R&D programs; entrepreneurial finance; regression discontinuity design
Practical information
- General public
- Free
Organizer
- Management of Technology & Entrepreneurship Institute