https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4298934 Skip to main content PDF iconDownload This Paper Open PDF in Browser Add Paper to My Library Share: * * * * Permalink Using these links will ensure access to this page indefinitely [https://papers.ssrn.] Copy URL [https://dx.doi.org/1] Copy DOI Great Recession Babies: How Are Startups Shaped by Macro Conditions at Birth? Swedish House of Finance Research Paper No. 23-01 105 Pages Posted: 22 Dec 2022 Last revised: 28 Nov 2023 See all articles by Daniel Bias Daniel Bias Owen Graduate School of Management at Vanderbilt University Alexander Ljungqvist Centre for Economic Policy Research (CEPR); Swedish House of Finance; European Corporate Governance Institute (ECGI) Date Written: August 27, 2023 Abstract We combine novel micro data with the quasi-random timing of patent decisions over the business cycle to estimate the effects of being born in the Great Recession on innovative startups. After purging ubiquitous selection biases and sorting effects, we find that recession startups experience better long-term outcomes in terms of employment and sales growth (both driven by lower mortality) and future inventiveness. While funding conditions cannot explain differences in outcomes, a labor market channel can: recession startups are better able to retain their founding inventors and build productive R&D teams around them. Keywords: Startups, Innovation, Great Recession, Scarring, Patents, R &D, Labor Mobility JEL Classification: G01, L26, M13, O34, E32, G24, J62 Suggested Citation: Suggested Citation Bias, Daniel and Ljungqvist, Alexander and Ljungqvist, Alexander, Great Recession Babies: How Are Startups Shaped by Macro Conditions at Birth? (August 27, 2023). Swedish House of Finance Research Paper No. 23-01, Available at SSRN: https://ssrn.com/abstract=4298934 or http://dx.doi.org/10.2139/ssrn.4298934 Daniel Bias Owen Graduate School of Management at Vanderbilt University ( email ) 2301 Vanderbilt Place Nashville, TN 37240 United States Alexander Ljungqvist (Contact Author) Centre for Economic Policy Research (CEPR) London United Kingdom Swedish House of Finance Swedish House of Finance ( email ) Drottninggatan 98 111 60 Stockholm Sweden European Corporate Governance Institute (ECGI) c/o the Royal Academies of Belgium Rue Ducale 1 Hertogsstraat 1000 Brussels Belgium PDF iconDownload This Paper Open PDF in Browser Do you have negative results from your research you'd like to share? Submit Negative Results Paper statistics Downloads 638 Abstract Views 7,608 Rank 104,627 PlumX Metrics Related eJournals * Swedish House of Finance Research Paper Series Follow Swedish House of Finance Research Paper Series Subscribe to this free journal for more curated articles on this topic FOLLOWERS 5,884 PAPERS 213 This Journal is curated by: Mia Chennell at Swedish House of Finance, Per Stromberg at Swedish House of Finance * Corporate Finance: Governance, Corporate Control & Organization eJournal Follow Corporate Finance: Governance, Corporate Control & Organization eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 3,264 PAPERS 33,204 This Journal is curated by: Rene M. Stulz at Ohio State University (OSU) - Department of Finance * Corporate Finance: Capital Structure & Payout Policies eJournal Follow Corporate Finance: Capital Structure & Payout Policies eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 2,647 PAPERS 14,620 This Journal is curated by: Rene M. Stulz at Ohio State University (OSU) - Department of Finance * S&P Global Market Intelligence Research Paper Series Follow S&P Global Market Intelligence Research Paper Series Subscribe to this free journal for more curated articles on this topic FOLLOWERS 2,543 PAPERS 40,134 * Financial Crises eJournal Follow Financial Crises eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 1,720 PAPERS 7,205 This Journal is curated by: Rene M. Stulz at Ohio State University (OSU) - Department of Finance * Macroeconomics: Prices, Business Fluctuations, & Cycles eJournal Follow Macroeconomics: Prices, Business Fluctuations, & Cycles eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 1,535 PAPERS 15,002 * Entrepreneurship & Economics eJournal Follow Entrepreneurship & Economics eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 1,312 PAPERS 11,408 * Entrepreneurship & Finance eJournal Follow Entrepreneurship & Finance eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 1,261 PAPERS 6,991 * IO: Productivity, Innovation & Technology eJournal Follow IO: Productivity, Innovation & Technology eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 1,066 PAPERS 28,628 * Labor: Supply & Demand eJournal Follow Labor: Supply & Demand eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 669 PAPERS 13,112 * Microeconomics: Intertemporal Firm Choice & Growth, Investment, Financing, & Capacity eJournal Follow Microeconomics: Intertemporal Firm Choice & Growth, Investment, Financing, & Capacity eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 576 PAPERS 6,845 * Development of Innovation eJournal Follow Development of Innovation eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 473 PAPERS 5,465 * Economics of Innovation eJournal Follow Economics of Innovation eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 342 PAPERS 19,614 * Innovation Finance & Accounting eJournal Follow Innovation Finance & Accounting eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 227 PAPERS 5,021 * International Political Economy: Investment & Finance eJournal Follow International Political Economy: Investment & Finance eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 72 PAPERS 12,061 * Political Economy - Development: Domestic Development Strategies eJournal Follow Political Economy - Development: Domestic Development Strategies eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 55 PAPERS 24,748 * Political Economy - Development: Health eJournal Follow Political Economy - Development: Health eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 51 PAPERS 14,761 Feedback Feedback to SSRN Feedback (required) [ ] Email (required) [ ] Submit If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday. Submit a Paper Section 508 Text Only Pages SSRN Quick Links * SSRN Solutions * Research Paper Series * Conference Papers * Partners in Publishing * Jobs & Announcements * Special Topic Hubs SSRN Rankings * Top Papers * Top Authors * Top Organizations About SSRN * SSRN Objectives * Network Directors * Presidential Letter * Announcements * Contact us * FAQs * * * Copyright Terms and Conditions Privacy Policy All content on this site: Copyright (c) 2023 Elsevier Inc., its licensors, and contributors. All rights are reserved, including those for text and data mining, AI training, and similar technologies. For all open access content, the Creative Commons licensing terms apply. We use cookies to help provide and enhance our service and tailor content. To learn more, visit Cookie Settings. This page was processed by aws-apollo-l100 in 0.098 seconds