Research Experience as Human Capital in New Business Outcomes
Human capital is typically cited as an important contributor to the survival, growth and innovative activity of new businesses. This paper contributes to the literature by both developing novel measures of human capital and examining the link between those measures and the outcomes of young firms. It builds on several strands of the literature which emphasize the importance of employee workplace experience as a dimension of human capital. It shows that the effects of work experience differ substantially by where an employee worked and is valued differently by firms in different sectors. This is particularly true for research experience, which is consistent with the notion that on the job training in complex tasks should be valuable to firms with complex production technologies.
Any opinions and conclusions expressed herein are those of the authors and do not necessarily represent the views of the U.S. Census Bureau. All results have been reviewed to ensure that no confidential information is disclosed. This research was supported by the National Center for Science and Engineering Statistics. NSF SciSIP Awards 1064220 and 1262447; NSF Education and Human Resources DGE Awards 1348691, 1547507, 1348701, 1535399, 1535370; NSF NCSES award 1423706; NIHP01AG039347; and the Ewing Marion Kaufman and Alfred P. Sloan Foundations. Lane was supported through an Intergovernmental Personnel Act assignment to the US Census Bureau. U.S. Government employees received no personal financial support for this work. We thank Scott Stern, participants at the Measuring and Accounting for Innovation in the 21st Century conference, and anonymous reviewers for helpful comments. The research agenda draws on work with many coauthors, but particularly Bruce Weinberg and Jason Owen Smith. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
U.S. Government employees received no personal financial support for this work.