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DP5335 Entrepreneurial Access and Absorption of Knowledge Spillovers: Strategic Board and Managerial Composition for Competitive Advantage

Author(s): David B Audretsch , Erik E Lehmann
Publication Date: November 2005
Keyword(s): board composition , university spillover , entrepreneurship , corporate governance
JEL(s):
Programme Areas: Industrial Organization
Link to this Page: www.cepr.org/pubs/dps/DP5335.asp


The resource theory of the firm implies that knowledge is a key resource bestowing a competitive advantage for entrepreneurial firms. However, it remains rather unclear up to now, how new ventures and small business can access knowledge resources. The purpose of this paper is to suggest two strategies in particular that facilitate entrepreneurial access to and absorption of external knowledge spillovers: the attraction of managers and directors with an academic background. Based on data on board composition of 295 high technology firms, the results clearly demonstrate the strong link between geographical proximity to research intense universities and board composition.

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