Where Do Spin-Offs Come From? Start-Up Conditions and the Survival of Pushed and Pulled Spin-Offs

Vera Rocha, Anabela Carneiro, Celeste Varum

    Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review


    Although previous research shows that spin-offs are among the most successful firms in an industry, outperforming de novo entrants, few studies consider the heterogeneity of corporate spin-offs in relation to firm performance or survival. Against this backdrop, the objective of the present chapter is twofold. First, this study aims to add to our knowledge on the relationship between spin-off type and firm survival using a comprehensive matched employer-employee dataset from Portugal. After controlling for their different start-up conditions—namely regarding initial hiring schemes, business-owners’ characteristics, and the industrial and geographical relatedness to the parent firm—and a set of firm, industry, and macroeconomic characteristics, we found no significant survival differences between opportunity and necessity spin-offs. Second, based on the findings, we suggest that necessity spin-offs have not received the attention they deserve. Not only do necessity spin-offs perform an important role in the dynamics of competitive markets, by offering a possible solution for recently displaced individuals, but they also create new jobs and help to prevent the depreciation of workers’ human capital.
    Original languageEnglish
    Title of host publicationEntrepreneurship, Human Capital, and Regional Development : Labor Networks, Knowledge Flows, and Industry Growth
    EditorsRui Baptista, João Leitão
    Number of pages30
    PublisherSpringer Science+Business Media
    Publication date2015
    ISBN (Print)9783319128702
    ISBN (Electronic)9783319128719
    Publication statusPublished - 2015
    SeriesInternational Studies in Entrepreneurship

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