We examine whether startups attract employees with different pecuniary and non-pecuniary motives than small or large established firms. We then explore whether such differences in employee motives lead to differences in innovative performance across firm types. Using data on over 10,000 U.S. R&D...

Scholars have long sought to understand the advantages different types of firms may have in generating innovation. A popular notion is that startup companies are able to attract employees with “fire in the belly,” allowing them to be more productive. Yet research has paid little attention to...