Work

Researcher–Entrepreneur Relationship and Performance of Innovative Startups

Year: 2026

Type: article

Abstract: ABSTRACT Many innovative startups are joint ventures between researchers and entrepreneurs, who collaborate in R&D and product commercialization. Government policies such as grants, subsidies, and patent licensing fees act as Pigouvian subsidies, incentivizing R&D by bridging the gap between the social and private returns of innovation. However, these subsidies may inadvertently strengthen the researcher's bargaining power within the researcher–entrepreneur relationship, leading to reduced research effort and skewed equity allocation that can undermine startup performance. Our findings suggest that addressing both external market failures and internal researcher–entrepreneur frictions requires a comprehensive policy portfolio. Conventional Pigouvian subsidies to innovation must be complemented with policies on startup governance and the entrepreneur labor market.

Source: International Journal of Finance & Economics

DOI: 10.1002/ijfe.70171

Authors: Yangguang Huang, Helen Hui

Institutions: University of Macau, Chinese University of Hong Kong

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,400