Articles

Achieving High Growth in Policy-Dependent Industries: Differences between Startups and Corporate-Backed Ventures

R. DURAND, G. PANAYIOTIS (PANIKOS)

Long Range Planning

aout 2017, vol. 50, n°4, pp.487-500

Departments: Strategy & Business Policy, GREGHEC (CNRS)

https://www.sciencedirect.com/science/article/pii/S002463011630053X


This research examines which firms achieve high growth in policy-dependent industries. Using the European solar photovoltaic industry as our empirical setting, we investigate the impact of policy support on the growth of independent startups and corporate-backed ventures operating across countries with diverse policy conditions. We find that producers' growth is positively linked to policy generosity, and negatively linked to policy discontinuity. Moreover, corporate-backed ventures are less affected by policy generosity compared to entrepreneurial startups, and less impacted by policy discontinuity as well. Our results underline the importance of country- and firm-level differences in analyzing firms' response to regulatory policies, and point to the need for a better understanding of the unintended consequences of policies designed to support new industries.


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