Entrepreneurship & Innovation

Entering new markets is crucial for technology startups to scale. But it is not clear which initial users help startups learn about demand in these target, often foreign, markets. While local users can typically offer clearer signals, foreign ones can offer more transferable ones. This raises the question: How does the local vs. foreign composition of initial users shape startups' subsequent foreign user growth? I test this question on a digital product platform.

How does participating in open source software (OSS) communities spur entrepreneurial growth? To address this question, we analyze novel data matching accounts from GitHub—the largest OSS hosting platform—to the universe of global software venture-backed firms identified by PitchBook. We find a robustly positive relationship between OSS contributions and entrepreneurial growth.

Industry groups engage in venue shifting when they seek to overturn or alter restrictive regulations imposed by one political venue through another. A critical step in this process is resolving uncertainties surrounding the preference of the targeted venue and the nature of the relevant policy proposal. While existing studies emphasize a long-term trial-and-error process of policy learning, we focus on nascent industries and argue that ventures seek other information sources to resolve these uncertainties quickly.

This case tells the story of Microsoft’s 2018 acquisition of GitHub and the subsequent launch of GitHub Copilot, a tool that uses generative artificial intelligence to suggest snippets of code to software developers in real time. Set in late 2021, when Copilot was still in beta, the case asks how Microsoft and GitHub should roll out Copilot to the public.

This is the first study to consider the relationship between open source software (OSS) and entrepreneurship around the globe. This study measures whether country-level participation on the GitHub OSS platform affects the founding of innovative ventures, and where it does so, for what types of ventures. We estimate these effects using cross-country variation in new venture founding and OSS participation. We propose an approach using instrumental variables, and cannot reject a causal interpretation.

Can accelerators pick the most promising startup ideas no matter their provenance? Using unique data from a global accelerator where judges are randomly assigned to evaluate startups headquartered across the globe, we show that judges are less likely to recommend startups headquartered outside their home region by 4 percentage points. Back-of-the-envelope calculations suggest this discount leads judges to pass over 1 in 20 promising startups.

Building infrastructure is hard; building a trillion dollars’ worth of infrastructure within a decade, while jump-starting U.S. manufacturing and protecting fragile ecosystems, is harder still. But if President Biden’s climate finance windfall is to position the United States to lead on clean-energy jobs, trade and innovation, that building needs to start now.

Speeding up the adoption of already proven and scalable technologies, and exposing the many hidden costs associated with fossil fuels, is a necessary goal. Achieving it will require new policies to guide investments in the right direction, and techno-optimists ought to be the loudest advocates.