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

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Abstract

Some start-ups treat regulatory constraints as exogenous and beyond their control, while other start-ups treat regulatory constraints as endogenous and possible to influence. However, thus far, no explanation has been offered for why start-ups differ in their responses to regulatory constraints.  Based on 49 interviews with start-ups and other industry actors this paper examines start-ups’ responses to regulatory constraints in the market for drone applications. We find that variation in start-ups’ responses is instigated by start-ups’ temporal orientation. Start-ups pursuing applications targeted at present markets or future potential markets treat regulation as exogenous. In contrast, start-ups that pursue market applications bridging current and future potential markets are more likely to treat regulation as endogenous.

Translated title of the contributionStart-ups strategiske respons på regulatoriske begrænsninger i det fremvoksnende dronemarked
Original languageEnglish
Article number104055
JournalResearch Policy
Volume49
Issue number10
Number of pages14
ISSN0048-7333
DOIs
Publication statusE-pub ahead of print - 4. Jul 2020

Keywords

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

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