Bridging knolwedge resources: the location choices of spinouts

This study develops a framework that links a typology of spinouts with distinct product/market strategies and the characteristics of localization economies to study location choice. Specifically, we examine focal spinouts and user- industry spinouts entry into generic and market-specific product categories, and localization economies related to the focal industry and to downstream user-industries. We test our hypotheses on a sample of 413 spinouts in the U.S. semiconductor industry from 1997 to 2007. Our findings show that focal spinouts make different location choices than user-industry spinouts and that such choices are mediated by product strategy at entry. Our results contribute to the literatures on location choice and strategic entrepreneurship.