KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Does Academic Entrepreneurship Pay?
(), Anders Broström
() and Thomas Åstebro
Abstract: Various policies have been devised to stimulate the
creation of spin-offs from universities by academics. But we still do not
know whether it is privately beneficial for academics to start new
businesses. To address this question we compile total earnings for the
universe of 478 individuals aged 60 or less working at Swedish universities
who quit to become full-time entrepreneurs between 1999 and 2008. Using tax
filings we record all possible earnings including wages, business income,
dividends and capital gains. There are very few full-time academic
entrepreneurs. Earnings are similar before and after becoming an
entrepreneur and dividends and capital gains are inconsequential. But the
income risk is more than three times higher in entrepreneurship.
Entrepreneurship for academics appears a gradual process and quite
episodic. Little explains entrepreneurial earnings except prior wage and
forming a sole proprietorship.
Keywords: academic entrepreneurship; earnings; Sweden; (follow links to similar papers)
JEL-Codes: J39; J62; M13; O32; (follow links to similar papers)
47 pages, November 23, 2012
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