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Small Business Economics

, Volume 42, Issue 2, pp 207–220 | Cite as

R&D investment of start-up firms: does founders’ human capital matter?

  • Yuji HonjoEmail author
  • Masatoshi Kato
  • Hiroyuki Okamuro
Article

Abstract

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.

Keywords

Founder Funding gap Human capital R&D Start-up 

JEL Classifications

G30 M13 O32 L26 

Notes

Acknowledgements

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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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.Faculty of CommerceChuo UniversityTokyoJapan
  2. 2.School of EconomicsKwansei Gakuin UniversityHyogoJapan
  3. 3.Graduate School of EconomicsHitotsubashi UniversityTokyoJapan

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