Business and innovation resources: determinants for the survival of new technology-based firms
Journal article, 2016
Purpose - The purpose of this paper is to analyze how new technology- based firms' (NTBF) business and innovation resources affect firm survival.
Design/methodology/approach - The study leverages a data set comprised of 131 Swedish NTBFs located in 16 incubators. The first part of the analysis investigates the determinants of firm survival, and the second presents a statistical analysis. The business resources examined in this study consist of business planning and localization variables and four latent variables are developed. Patents at the firm start or during the firm's first three years are considered as innovation resources.
Findings - First, this study shows that the latent business plans variable has a significant positive connection with firm survival. Second, patent development during firms' initial years is critical to firm survival.
Originality/value - This study is longitudinal, with the first data collection occurring in 2005 and the second in 2014. The firms' 2013 annual reports suggest that the firms' survival rate is 55 percent. This longitudinal research that spans eight years shows how the development of patents is highly significant to firm survival.