Knowledge-Based Entrepreneurship and Technology Transfer: Evidence from the German Laser Industry

This paper studies the origins of the German laser industry and the role of entrepreneurship in the first 40 years of its evolution. Some exemplary cases of entry into the emerging German laser industry are first presented, before the generality of the evolutionary patterns observed in the U.S. laser industry is tested. Similar to the U.S., laser firm spin-offs were systematically more successful than academic startups in the German laser industry. In contrast, no performance differences are found between laser firm spin-offs and integrating import/distribution firms, suggesting that performance differences were primarily driven by knowledge of markets opportunities. The paper then discusses the determinants of spin-off generation in German laser firms.