Heterogeneous Exits: Evidence from New Firms

This paper explores heterogeneous exits—bankruptcy, voluntary liquidation, and merger—by focusing on new firms. Using a sample of approximately 16,000 firms founded in Japan during 1997–2004, we examine the determinants of new-firm exit according to forms of exit. Regarding industry-specific characteristics, our findings indicate that new firms in capital-intensive and R&D-intensive industries are less likely to go bankrupt. In industries characterized by large amounts of capital and low price–cost margins, new firms are more likely to exit through voluntary liquidation and merger. Region-specific characteristics, such as regional agglomeration and unemployment rate, have significant effects on the hazards of exit, and their effects vary across different forms of exit. Moreover, we provide evidence that firm-specific characteristics, such as the number of employees, and entrepreneur-specific characteristics, such as educational background and age, play significantly different roles in determining each form of exit.New firm; exit; bankruptcy; voluntary liquidation; merger; competing risks proportional hazards model.

Development of University Life-Science Programs and University-Industry Joint Research in Japan

How does the establishment of new university educational programs promote university-industry joint research? To study this question for the fields of life sciences and biotechnology, we first compile the data on the establishment of new undergraduate and graduate programs in these fields in Japanese universities since the 1950s. We then analyze statistically whether and how such establishment contributed to the occurrence and frequency of university-industry joint research in biotechnology. The results suggest that, first, the expansion of such university programs in fact contributed to the promotion of university-industry joint research and, second, these collaborations increased following the 1998 legislation to promote technology transfer from universities (the so-called TLO Act) and the 1999 legislation to allow universities to retain rights on their inventions made with government research funds (the so-called Japanese Bayh-Dole Act).

Heterogeneous Exits: Evidence from New Firms

This paper explores heterogeneous exits-bankruptcy, voluntary liquidation, and merger-by focusing on new firms. Using a sample of approximately 16,000 firms founded in Japan during 1997-2004, we examine the determinants of new-firm exit according to forms of exit. Regarding industry-specific characteristics, our findings indicate that new firms in capital-intensive and R&D-intensive industries are less likely to go bankrupt. In industries characterized by large amounts of capital and low price-cost margins, new firms are more likely to exit through voluntary liquidation and merger. Region-specific characteristics, such as regional agglomeration and unemployment rate, have significant effects on the hazards of exit, and their effects vary across different forms of exit. Moreover, we provide evidence that firm-specific characteristics, such as the number of employees, and entrepreneur-specific characteristics, such as educational background and age, play significantly different roles in determining each form of exit.New firm, exit, bankruptcy, voluntary liquidation, merger, competing risks proportional hazards model

Determinants of R&D cooperation in Japanese high-tech start-ups

This paper explores the determinants of R&D cooperation in Japanese hightech start-ups. Using a sample from an original survey conducted in 2008, we examine the effects of founder-, firm-, and industry-specific characteristics on R&D cooperation by the type of partners. Our findings indicate that founder-specific characteristics, such as educational background, academic affiliation, and prior innovation output, are fairly important in determining R&D cooperation with universities and public research institutes. We also provide evidence that founders' work experience and prior innovation output have positive and significant effects on R&D cooperation with business partners. With respect to firm-specific characteristics, it is found that firms investing more in R&D tend to engage in R&D cooperation, regardless of the type of partners. Furthermore, it is found that independent firms are less likely to cooperate on R&D with universities and public research institutes, than subsidiaries and affiliated firms.Start-up, R&D cooperation, Founder, University, Business partner

R&D financing of start-up firms : How much does founders' human capital matter?

This paper explores research and development (R&D) financing of start-up firms. Using a sample from an original survey conducted in 2008, we identify whether initial funds and founder-specific characteristics relate to R&D investment of start-up firms in Japan. It is found that internal finance is positively associated with R&D investment. It is also found that founders with higher educational background, prior innovation output and academic affiliation tend to raise more funds for R&D. On the other hand, we provide evidence that the effects of founders' human capital are mediated by investment opportunities, which would indicate that R&D investment of start-up firms depends heavily on investment opportunities.Founder, Human capital, Internal finance, R&D, Start-up

Does Founders’ Human Capital Matter for Innovation? Evidence from Japanese Start-ups

Using a sample from an original questionnaire survey in Japan, this paper explores whether and how founders’ human capital affects innovation outcomes by start-ups. The results provide evidence that founders with greater human capital are more likely to yield innovation outcome. However, because certain types of founders’ human capital may boost R&D investment, which possibly results in innovation outcomes, we estimate the determinants of innovation outcomes by an instrumental variable probit model taking into account the endogeneity of R&D investment. Our findings suggest that specific human capital for innovation, such as founders’ prior innovation experience, is directly associated with innovation outcomes after start-up, while generic human capital, such as founders’ educational background, indirectly affects innovation outcomes through R&D investment.Start-up, Founder, Human capital, Innovations, R&D investment

Does founders’ human capital matter for innovation? Evidence from Japanese start-ups

Using a sample from an original questionnaire survey in Japan, this paper explores whether and how founders’ human capital affects innovation outcomes by start-ups. The results provide evidence that founders with greater human capital are more likely to yield innovation outcome. However, because certain types of founders’ human capital may boost R&D investment, which possibly results in innovation outcomes, we estimate the determinants of innovation outcomes by an instrumental variable probit model taking into account the endogeneity of R&D investment. Our findings suggest that specific human capital for innovation, such as founders’ prior innovation experience, is directly associated with innovation outcomes after start-up, while generic human capital, such as founders’ educational background, indirectly affects innovation outcomes through R&D investment.Founder, Human capital, Innovations, R&D investment

An Interactive Fuzzy Satisficing Method for Fuzzy Random Multiobjective 0-1 Programming Problems through Probability Maximization Using Possibility

In this paper, we focus on multiobjective 0-1 programming problems under the situation where stochastic uncertainty and vagueness exist at the same time. We formulate them as fuzzy random multiobjective 0-1 programming problems where coefficients of objective functions are fuzzy random variables. For the formulated problem, we propose an interactive fuzzy satisficing method through probability maximization using of possibility