Human Capital, R&D Intensity and Start-Ups Growth in A Transition Economy

This paper contributes to the literature by providing evidence on how R&D intensity and human capital influence start-ups growth. In particular, while a number of studies exist investigating the growth factors of newly born enterprises in market economies, the extent to which the growth of start-ups in a transition economy is influenced by various dimensions is still no entirely recognised. Thus, this paper is aimed to analyse the importance of R&D intensity and human capital on the growth of start-ups in Poland. The study is done on the grounds of Polish two- and four-year old start-ups for 2008-2016 period. Hypotheses were tested with the Ordinary Least Squared regression with robust standard errors. Statistical significance of the results was determined with F-test. The study provides evidence on heterogeneous value of R&D intensity and human capital in the growth of newly born enterprises in a transition economy. By controlling for the scale of start-ups (size class) and economic activity sector this paper extends previous research on the factors affecting growth of enterprises in transition economies. The findings may be interesting for policy makers while formulating innovation policy. Government policy that aimed to benefit newly born enterprises should also provide for supporting the development of human capital, especially in two-year old start-ups.