Abstract
The paper explores the effect of scientific institutions on firm’s growth, coupling regional science and entrepreneurship approaches. We focus on the role of universities, largely considered in the literature as the main source of knowledge spillovers. To this purpose, we centre our attention on UK public companies on the Alternative Investment Market (AIM), a market dedicated to young and growing companies in both science and non-science based industries. In the paper we investigate the growth determinants of 231 listed firms which have gone public during the period going from 1995 to 2006. To our purposes, in the empirical analysis we use the Gibrat’s Law of Proportionate Effects model. The results supports the hypothesis that, controlling for firm’s idiosyncratic factors and external forces, both universities knowledge input and output are important determinants of the growth of entrepreneurial firms listed on the AIM.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Notes
EurIPO is a database containing information on European public companies realized at the University of Bergamo. The dataset is organized in three sections: Accounting, collecting data from the balance sheets, e.g., assets, equity, sales, EBIT and capital expenditure; Offer, which brings together data on the offering, such as pricing methodology, number of share, cost of the IPO and Book Value; Ownership, gathering information on main shareholder, founder, CEO and board of directors. Additional information referring to intellectual property rights is also included.
Commission Recommendation 2003/361/EC of 6 May 2003 regarding the SME definition, which replaced Recommendation 96/280/EC as from 1 January 2005.
References
Antonelli, C. (2005). Models of knowledge and systems of governance. Journal of Instituional Economics, 1, 51–73.
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58, 277–297.
Arrow, K. J. (1962). Economic welfare and the allocation of resources for invention. In R. R. Nelson (Ed.) The rate and direction of inventive activity: Economic and social factors (pp. 609–625). Princeton, NJ: Princeton University Press for N.B.E.R.
Asheim, B., Isaksen, A., Nauwelaers, C., & Tötdling, F. (2003). Regional innovation policy for small-medium enterprises. Cheltenham, UK and Lyme, US: Edward Elgar.
Audretsch, D. B. (1995). Innovation and industry evolution. Cambridge, MA: MIT.
Audretsch, D. B., & Feldman, M. P. (1996). R&D spillovers and the geography of innovation and production. American Economic Review, 86, 630–640.
Audretsch, D. B., & Lehmann, E. E. (2005a). Does the knowledge spillover theory of entrepreneurship hold for regions? Research Policy, 34, 1191–1202.
Audretsch, D. B., & Lehmann, E. E. (2005b). Mansfield’s missing link: The impact of knowledge spillovers on firm growth. Journal of Technology Transfer, 30(1/2), 207–210.
Audretsch, D. B., Lehmann, E. E., & Warning, S. (2004). University spillovers: Does the kind of knowledge matters? Industry and Innovation, 11, 193–205.
Audretsch, D. B., & Link, A. N. (2006). Empirical evidence on knowledge flows from research collaborations: Introduction to the special issue. Economics of Innovation and New Technology, 15(1), 1–3.
Audretsch, D. B., & Stephan, P. E. (1996). Company–scientist locational links: The case of biotechnology. The American Economic Review, 86, 641–652.
Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87, 115–143.
Bond, S. (2002). Dynamic panel data models: A guide to micro data methods and practice. Portuguese Economic Journal, 1, 141–162.
Chen, J. R., & Chih-Hai, Y. (2005). Technological knowledge, spillovers and productivity: Evidence from Taiwanese firm level panel data. Applied Economics, 37(20), 2361–2371.
Colombo, M. G., D’Adda, D., & Piva, E. (2006). When do university-based knowledge spillovers influence the growth of NTBFs? Rent XX Conference, Brussels.
Cooke, P. (2002). Knowledge economies. Clusters, learning and cooperative advantage. London: Routledge.
Covin, J. G., & Covin, T. J. (1990). Competitive aggressiveness, environmental context, and small firm performance. Entrepreneurship Theory and Practice, 14, 35–50.
Covin, J. G., & Slevin, D. P. (1991). A conceptual model of entrepreneurship as firm behaviour. Entrepreneurship Theory and Practice, 16, 7–25.
David, P. A. (1993). Knowledge property and the system dynamics of technological change. In L. Summers, & S. Shah (Eds.) Proceedings of the world bank annual conference on development economics (pp. 215–248). Washington, DC: The World Bank.
Etzkowitz, H., & Leydesdorff, L. (1997). Universities in the global economy: A triple helix of university–industry–government relations. London: Cassell.
Etzkowitz, H., & Leydesdorff, L. (2000). The dynamics of innovation: From national systems and “Mode 2” to a triple helix of university–industry–government relations. Research Policy, 29(2), 109–123.
Foray, D., & Lundvall, B. (1995). The knowledge-based economy: from the economics of knowledge to the learning economy. Employment and growth in the knowledge-based economy pp. 11–32. Paris: OECD.
Freeman, C. (1987). Technology and economic performance: Lessons from Japan. London: Pinter.
Freeman, C. (1991). Networks of innovators: A synthesis of research issues. Research Policy, 20, 499–514.
Griliches, Z. (1992). The search for R&D spillovers. Scandinavian Journal of Economics, 94, 29–47.
Hall, B. H., & Mairesse, J. (1995). Exploring the relationship between R–D and productivity in France manufacturing firms. Journal of Econometrics, 65, 263–93.
Jaffe, A. B. (1989). Real effects of academic research. The American Economic Review, 79, 957–970.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21, 135–172.
Lundvall, B. (1992). National systems of innovation: Towards a theory of innovation and interactive learning. London: Frances Pinter.
Mairesse, J., & Hall, B. H. (1996). Estimating the productivity of research and development in France and United States manufacturing firms: An exploration of simultaneity issues with GMM. In K. Wagner, & B. van Ark (Eds.) International productivity comparisons (pp. 285–315). Amsterdam: North-Holland.
Mairesse, J., & Sassenou, M. (1991). R&D and productivity: A survey of econometric studies at the firm level. Science-Technology Industry Review, 8, 317–48.
Nelson, R. R. (1959). The simple economics of basic scientific research. Journal of Political Economy, 67, 297–306.
Nelson, R. R. (1993). National innovation systems: A comparative analysis. Oxford: Oxford University Press.
Nelson, R. R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge, MA: Harvard University Press.
OECD (1996). The knowledge-based economy. Paris: OECD.
O’Shea, R. P., Allen, T. J., Chevalier, A., & Roche, F. (2005). Entrepreneurial orientation, technology transfer and spin-off performance of U.S. universities. Research Policy, 34, 994–1009.
Powers, J. (2003). Commercializing academic research: Resource effects on performance of university technology transfer. The Journal of Higher Education, 74, 26–50.
Sadler-Smith, E., Hampson, Y., Chaston, I., & Badger, B. (2003). Managerial behavior, entrepreneurial style, and small firm performance. Journal of Small Business Management, 41(1), 47–67.
Smith, K. (2002). What is the ‘knowledge economy’? Knowledge intensity and distributed knowledge bases, discussion paper. Maastricht: United Nations University.
Swierczek, F. W., & Ha, T. T. (2003). Entrepreneurial orientation, uncertainty avoidance and firm performance. International Journal of Entrepreneurship and Innovation, 4(1), 46–58.
Varga, A. (2000). Local academic knowledge transfers and the concentration of economic activity. Journal of Regional Science, 40, 289–309.
Wolff, J. A., & Pett, T. L. (2006). Small-firm performance: Modeling the role of product and process improvements. Journal of Small Business Management, 44(2), 268–284.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Cassia, L., Colombelli, A. Do universities knowledge spillovers impact on new firm’s growth? Empirical evidence from UK. Int Entrep Manage J 4, 453–465 (2008). https://doi.org/10.1007/s11365-008-0084-1
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11365-008-0084-1