Drivers of innovation in start-ups: An investigation of the effects of upper and lower echelon human capital and HR practices on innovative output in start-ups

Innovative start-ups have become the center of attention in government policy. They are considered to be the driving force of economic growth and international competitive advantage. Despite this growing interest, little is known about firm internal determinants of and critical success factors for innovation in newly established firms. Innovation is a function of a firm's ability to create, manage and maintain knowledge (Smith et al., 2005). Since knowledge is created by and stored within individuals, human resources as well as HR practices may play an important role as drivers of innovation in start-ups. The purpose of this study is to examine the impact of upper echelon human capital (i.e. the human capital of owners/managers and the presence of mechanisms to expand the owners/managers' knowledge base), lower echelon human capital and HR practices on innovative output in start-ups.