R&D investment of start-up firms: does founders’ human capital matter?
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This article examines whether founders’ human capital affects not only actual investment but also required investment in research and development (R&D), using the original data of Japanese start-up firms. The estimation results indicate that higher levels of founders’ human capital, especially their education levels, increase both actual and required investment in R&D and thus do not necessarily contribute to reducing the funding gap for R&D.
KeywordsFounder Funding gap Human capital R&D Start-up
JEL ClassificationsG30 M13 O32 L26
This study is supported by a Grant-in-Aid for Scientific Research (A) (no. 20243018) from the Japan Society for the Promotion of Science. We are grateful to Luca Grilli, Itxaso del Palacio, and the participants in a seminar at Politecnico di Milano, the 9th Interdisciplinary European Conference on Entrepreneurship Research (IECER), and the VICO Final Conference for their helpful comments and suggestions. We thank the editor and two anonymous reviewers for their valuable comments and suggestions. We also thank Kosei Fukuda for valuable advice on estimation methods and Kenta Ikeuchi for excellent research assistance. Needless to say, any remaining errors are our own.
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