Secondary Stock Exchanges and Growth of High-Tech Entrepreneurs

We present empirical evidence that the establishment of secondary stock exchanges spurs local high-tech entrepreneurship. We find a significant increase in high-tech entrepreneurial activities following the staggered launches of such stock exchanges, and this increase is disproportionally higher in industries that are more dependent on secondary stock exchanges ex ante. We further show that secondary stock exchanges promote entrepreneurial growth by encouraging talent to become entrepreneurs, by promoting venture investment, and by enhancing transactions of intellectual property. More experienced inventors and inventors who have worked for big companies are all more likely to become entrepreneurs after the launch of secondary stock exchanges