Investor Type and Innovative Performance: Regional Characteristics as a Moderating Variable
Suci Lestari Hakam1, Agus Rahayu2, Lili Adi Wibowo3, Muhamad Adhi Nugroho4

1 Student of Doctoral Program, Department of Management, Faculty of Economics and Business Education, Universitas Pendidikan Indonesia
2,3 Lecturer, Department of Management, Faculty of Economics and Business Education, Universitas Pendidikan Indonesia
4 Staff of Directorate General of Taxes, Ministry of Finance, Republic of Indonesia
*Corresponding author. Email: sucilestarihakam[at]gmail.com

Abstract

Startups require external investment to accelerate growth and scale up their businesses. Many works of literature discussed the types of investors and their influence on startup innovative performance. However, previous literature neglected the influence of the regional characteristics of each startup. This regional characteristic is significant as a moderating factor for high tech startups because it is related to the protection of property rights. To fill the gap, this study investigates the impact of investor type on innovative performance by distinguishing regional characteristics as an important factor in improving startups^ innovative performance.

In measuring the innovation performance of a startup, this study uses intellectual property rights that consist of a number of effective patent and trademark registered. From the Crunchbase database, this study employed 5,172 enterprise-level data of startups. Using systematic random sampling, 358 data were acquired to test the hypotheses. The regression results show that the Investor type (incubator, accelerator, angel, and venture capital) significantly promotes innovative performance. In addition, the result shows a more significant impact for the regional characteristic with higher protection of property rights.

Keywords: Startup, Investor Type, Venture Capital, Regional Characteristic, Incubator, Accelerator, Angel, Innovative Performance

Topic: Strategic Management, Entrepreneurship and Contemporary Issues