Does Founders' Human Capital Matter for Innovation? Evidence from Japanese Start‐ups1. (20th January 2014)

• Record Type: Journal Article
• Authors: Kato, Masatoshi; Okamuro, Hiroyuki; Honjo, Yuji
• Is Part Of: Journal of small business management. Volume 53:Number 1(2015:Jan.)
• Page Start: 114
• Page End: 128
• Publication Date: 2014-01-20
• Subjects: Small business -- Management -- Periodicals; 658.022
• DOI: 10.1111/jsbm.12094
• Languages: English
• ISSNs: 0047-2778

Abstract

<abstract abstract-type="main"> <title> <x xml:space="preserve">Abstract</x> </title> <p>Using an original questionnaire survey, this paper explores whether and how founders' human capital affects the innovation outcomes of start‐ups. We found that founders with greater human capital are more likely to yield innovation outcomes. Because certain types of human capital may boost research and development (R&amp;D) investment, which possibly results in innovation outcomes, we estimate the determinants of innovation outcomes by an instrumental variable probit model. Our findings suggest that specific human capital for innovation, such as prior innovation experience, is directly associated with innovation outcomes, whereas generic human capital, such as educational background, indirectly affects innovation outcomes through R&amp;D investment.</p> </abstract>