Start-ups, Innovation and Knowledge Spillovers

Abstract

Abstract The knowledge spillover theory of entrepreneurship (KSTE) seeks to explain the mechanisms of how uncommercialized knowledge can be turned into new to market products. This paper uses a large unbalanced panel of 16,542 UK firms constructed from six consecutive waves of a community innovation survey and annual business registry survey during 2002–2014 to test the differences in the returns to knowledge spillover for innovation between start-ups and incumbent firms. The theoretical, managerial, and policy implications of the study are discussed.

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