Title

The Role of R&D Intensity, Technical Development and Absorptive Capacity in Creating Entrepreneurial Wealth in High Technology Start-Ups

Department/School

Entrepreneurship

Date of this version

3-2001

Document Type

Article

Keywords

High technology ventures; Entrepreneurship; Scientific capabilities; Technical capabilities

Abstract

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.

Published in

Journal of Engineering and Technology Management

Citation/Other Information

Journal of Engineering and Technology Management, vol. 18, issue 1, pp. 29-47.