The Role of R&D Intensity, Technical Development and Absorptive Capacity in Creating Entrepreneurial Wealth in High Technology Start-Ups
Date of this version
High technology ventures; Entrepreneurship; Scientific capabilities; Technical capabilities
This study uses 80 newly public pharmaceutical biotechnology companies to explore the relationship between a high technology venture’s R&D intensity, technical capabilities and absorptive capacity and the amount of entrepreneurial wealth created by the venture. A novel measure of absorptive capacity based on co-citation analysis of a firm’s scientific publications is developed and several indicators of technical capabilities are used to develop early and late stage measures of a firm’s technical capabilities. The results provide strong evidence of a positive relationship between a high technology venture’s R&D intensity, late stage technical capabilities and absorptive capacity and the amount of entrepreneurial wealth created by a high technology venture.
Journal of Engineering and Technology Management