Firm-Specific Resources and Wealth Creation in High-Technology Ventures: Evidence from Newly Public Biotechnology Firms



Date of this version

Spring 1998

Document Type



entrepreneurship; high technology industries; joint ventures; market value; mathematical models; new business enterprises


We explore the relationship between wealth creation in high-technology ventures and firm-specific resources. We argue that Market Value Added is a particularly appropriate measure of entrepreneurial performance because of its focus on wealth creation, which is the essence of entrepreneurship. We present a model of wealth creation in new ventures based on the resource-based theory of firm behavior. The model suggests that firm-specific research and scientific capabilities are associated with wealth creation. The model is tested on a sample of 89 biotechnology firms. The results provide strong evidence for the hypothesized relationship between firm-specific capabilities and wealth creation in new ventures.

Published in

Entrepreneurship Theory and Practice

Citation/Other Information

Entrepreneurship Theory and Practice, 1998, vol. 22, issue 3, pages: 55.