Diffusers of Entrepreneurship

dc.contributor.author Cao, Sean
dc.contributor.author He, Jie
dc.contributor.author Lin, Zhilu
dc.contributor.author Ren, Xiao
dc.date.accessioned 2020-12-01T00:49:07Z
dc.date.available 2020-12-01T00:49:07Z
dc.date.issued 2020-08-13
dc.description.abstract We examine an emerging phenomenon that talented employees leave successful entrepreneurial firms to join younger ones. Using a unique person-level dataset and a comprehensive sample of private firms from the U.S. Census Bureau, we find that such "entrepreneurial diffusers", by passing on entrepreneurial spirit, innovative culture, and institutional wisdom, enhance younger startups' innovation productivity and likelihood of successful exits. Further, these diffusers are motivated by the entrepreneurial spirit of risk-taking instead of monetary gains. Finally, we find that the departure of entrepreneurial diffusers contributes to the long-run IPO underperformance documented in the prior literature. Our paper offers new insights into a labor market channel of the cross-firm diffusion of entrepreneurship, which is critical to the sustainability of a vibrant entrepreneurial ecosystem.
dc.identifier.uri http://hdl.handle.net/10125/70487
dc.subject Entrepreneurship
dc.subject Diffusion
dc.subject Ipos
dc.subject Sell-Outs
dc.subject Innovation
dc.subject Human Capital
dc.title Diffusers of Entrepreneurship
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