The Effect of Defense Agency Funding of University Research on Regional New Venture Creation

This study explores the effects of defense agency funding of university research on regional new venture creation. We argue that ‘closed’ university research may constrain the direct flow of new knowledge into the entrepreneurial process, but does not restrict more tacit and indirect flows of university research. We find a negative (positive) effect of the defense share of university research funding on short‐term (long‐term) regional start‐up...