Startup Growth and Conditioning Factors: A conceptual framework for a survey-based study

Author Name HAMAGUCHI Nobuaki (Faculty Fellow, RIETI) / João Carlos FERRAZ (Universidade Federal do Rio de Janeiro)
Creation Date/NO. February 2023 23-E-012
Research Project Economic Policy for Post Covid-19 Japanese Regional Economies
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What accounts for the expansion of high-tech startups? This paper provides a selective but reasonably comprehensive review of studies attempting to answer this question, drawing from the economic and business literature, especially from the resource-based view of the firm. We seek a scholarly foundation to propose a set of hypotheses to guide the design of a questionnaire-based survey of Japanese startup companies. Our basic proposition is that the growth of a startup is a function of predominantly positive interaction among all or a subset of the following elements: the Schumpeterian spirit of the entrepreneur, the existence of a dynamic set of capabilities within the firm, including the capacity to market and explore potential demand, its location within reach of an innovatively dense ecosystem, the availability of adequate financing, and the effectiveness of appropriate public support instruments.