The technological traits of invention and the exit of high-tech start-ups
by Congshan Li
International Journal of Technology Management (IJTM), Vol. 94, No. 1, 2024

Abstract: Exit, whether through an IPO or acquisition, is the goal for the majority of high-tech start-ups, but its probability is low. We theorise that the technological novelty of a start-up's invention increases the cost of exit and the commercialisation risk, hence having a negative effect on its exit probability. We study this empirically for a sample of healthcare start-ups using a refined method for measuring technological novelty. The empirical findings support our hypothesis and demonstrate that novelty has a negative effect on the chance of exit, which is more pronounced for acquisitions than for IPOs. In addition, the empirical findings indicate that conventionality positively moderates the association for both acquisition and IPO, but scientific knowledge origin moderates primarily acquisition.

Online publication date: Sun, 03-Dec-2023

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology Management (IJTM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com