Previous research on knowledge spillovers has generally focused on knowledge flow from originators to recipients (i.e., outgoing spillovers) and its negative effects on originators. However, recent studies have examined knowledge flow from recipients to originators (i.e., incoming spillovers) and its positive effects on originators. They suggest that originators vicariously learn about how recipients discover novel opportunities implicit in their original knowledge. In this study, we examine the effects of incoming spillovers from the perspective of entrepreneurial recipients. Using a sample of 8,426 companies between 1985 and 2010, we show that incoming knowledge spillovers have differential effects on the IPO completion rate of entrepreneurial recipients depending on the types of originators. On the one hand, incoming knowledge spillovers to entrepreneurial originators delay the IPO rate of entrepreneurial recipients, as the originators act as competitors whose innovative pursuits hinder the recipient’s business opportunities. On the other hand, incoming knowledge spillovers to established originators increase the IPO rate, as knowledge exchange relationships serve as external endorsements that enhance perceptions of the recipient’s technology. The main effects vary significantly according to the similarity of knowledge bases between originators and recipients.
