Entrepreneurial Dynamics and Acquistions of New Technology-Based Firms

The aim of this thesis is to investigate the evolution of new technology-based firms
(NTBFs) based on solid empirical material for the Swedish economy. The focus on this
thesis is exploring the role of acquisition by incumbent firms in the evolution of NTBFs.
The findings of this thesis show that selection is a core feature in the evolution
of NTBFs. NTBFs experience a high exit rate during the first years after entry, though
they exhibit a higher survival probability than other types of entrepreneurial firms in
general. Moreover, acquisition is an alternative but important selection mechanism
for start-ups, particularly for NTBFs. Through acquisition, acquirers select "quality"
start-ups in terms of technological capabilities and efficiency, especially when acquirers
are from multinational enterprises (MNEs). In addition, acquired NTBFs experience
an extensive internal selection and experimentation by acquirers within 4 years after
acquisition. If acquired NTBFs survive the internal selection and experimentation process,
the growth of acquired NTBFs is likely to be promoted, but this pertains only to
acquisition by Swedish MNEs.