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Various theories that can account for employees leaving incumbent firms to start their own firms in the same industry are discussed. The theories are evaluated using evidence from three new and one old study of such employee startups in high-tech industries and from studies of high-tech and high-growth startups of all kinds. A new, evolutionary-based theory that builds on and extends existing theories is sketched out to provide a novel interpretation of the evidence. Copyright 2001 by Oxford University Press.
Steven Klepper (Wed,) studied this question.