Why might management teams decide to be innovative as opposed to selling existing products and services? What factors motivate entrepreneurs to pursue high-tech (vs. low-tech) business opportunities? These questions motivate this paper, which includes a battery of empirical tests based on the...

We develop a theoretical model of the interaction between investors and entrepreneurs in a stylized private-equity market. Analysis of the entrepreneur's and the investor's optimization problems leads to the derivation of the equilibrium ownership share accruing to the investor;...

Managers of start-up firms make a number of important yet understudied decisions, such as whether or not to develop a new product, whether or not to choose a high-technology product or service, whether or not to use external assistance, and the amount of time and effort they will devote to their...