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Abstract We examine a rationale for entrepreneurial spin‐outs, when employing firms are not protected from expropriation by their employees, built on the resource‐based view of the firm. We consider a repeated innovations setting and develop the dynamics of the entrepreneurial spin‐out decision. The implications for the gradual development of a sector of activity are in line with existing empirical findings.
Pierre Mella‐Barral (Fri,) studied this question.
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