The strategic responses of start-ups to regulatory constraints in the nascent drone market

Kristina Vaarst Andersen; Marianne Harbo Frederiksen; Mette Præst Knudsen; Anders Dahl Krabbe

doi:10.1016/j.respol.2020.104055

The strategic responses of start-ups to regulatory constraints in the nascent drone market

Kristina Vaarst Andersen^*, Marianne Harbo Frederiksen, Mette Præst Knudsen, Anders Dahl Krabbe

^*Corresponding author for this work

Stanford University

Research output: Contribution to journal › Journal article › Research › peer-review

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Abstract

Some start-ups treat regulatoryconstraints as exogenous and beyond their control, while other start-ups treatregulatory constraints as endogenous and possible to influence. However, thusfar, no explanation has been offered for why start-ups differ in their responsesto regulatory constraints. Based on 49interviews with start-ups and other industry actors this paper examines start-ups’responses to regulatory constraints in the market for drone applications. Wefind that variation in start-ups’ responses is instigated by start-ups’ temporalorientation. Start-ups pursuing applications targeted at present markets orfuture potential markets treat regulation as exogenous. In contrast, start-ups thatpursue market applications bridging current and future potential markets aremore likely to treat regulation as endogenous.

Translated title of the contribution	Start-ups strategiske respons på regulatoriske begrænsninger i det fremvoksnende dronemarked
Original language	English
Article number	104055
Journal	Research Policy
Volume	49
Issue number	10
Number of pages	14
ISSN	0048-7333
DOIs	https://doi.org/10.1016/j.respol.2020.104055
Publication status	Published - Dec 2020

Keywords

M13 new firms
Sectorial Planning Methods
Start-ups, l22 firm organization and market structure, l52 industrial policy

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10.1016/j.respol.2020.104055

Open Access VersionAccepted manuscript, 630 KBLicence: CC BY-NC-ND

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title = "The strategic responses of start-ups to regulatory constraints in the nascent drone market",

abstract = "Some start-ups treat regulatoryconstraints as exogenous and beyond their control, while other start-ups treatregulatory constraints as endogenous and possible to influence. However, thusfar, no explanation has been offered for why start-ups differ in their responsesto regulatory constraints. Based on 49interviews with start-ups and other industry actors this paper examines start-ups{\textquoteright}responses to regulatory constraints in the market for drone applications. Wefind that variation in start-ups{\textquoteright} responses is instigated by start-ups{\textquoteright} temporalorientation. Start-ups pursuing applications targeted at present markets orfuture potential markets treat regulation as exogenous. In contrast, start-ups thatpursue market applications bridging current and future potential markets aremore likely to treat regulation as endogenous.",

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AU - Krabbe, Anders Dahl

PY - 2020/12

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N2 - Some start-ups treat regulatoryconstraints as exogenous and beyond their control, while other start-ups treatregulatory constraints as endogenous and possible to influence. However, thusfar, no explanation has been offered for why start-ups differ in their responsesto regulatory constraints. Based on 49interviews with start-ups and other industry actors this paper examines start-ups’responses to regulatory constraints in the market for drone applications. Wefind that variation in start-ups’ responses is instigated by start-ups’ temporalorientation. Start-ups pursuing applications targeted at present markets orfuture potential markets treat regulation as exogenous. In contrast, start-ups thatpursue market applications bridging current and future potential markets aremore likely to treat regulation as endogenous.

AB - Some start-ups treat regulatoryconstraints as exogenous and beyond their control, while other start-ups treatregulatory constraints as endogenous and possible to influence. However, thusfar, no explanation has been offered for why start-ups differ in their responsesto regulatory constraints. Based on 49interviews with start-ups and other industry actors this paper examines start-ups’responses to regulatory constraints in the market for drone applications. Wefind that variation in start-ups’ responses is instigated by start-ups’ temporalorientation. Start-ups pursuing applications targeted at present markets orfuture potential markets treat regulation as exogenous. In contrast, start-ups thatpursue market applications bridging current and future potential markets aremore likely to treat regulation as endogenous.

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KW - M13 new firms

KW - Sectorial Planning Methods

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DO - 10.1016/j.respol.2020.104055

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The strategic responses of start-ups to regulatory constraints in the nascent drone market

Abstract

Keywords

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