This article examines how two core factors--strategic and entrepreneurial dynamics--influence research and development (R&D) investment in new technology-based firms (NTBFs) using data from a questionnaire survey conducted in Japan. Among the strategic dynamics, it is found that joint R&D projects with universities have a positive, complementary effect on R&D investment. Moreover, among the entrepreneurial dynamics, a chief executive officer's higher education and prior industry experience in an R&D role (the latter implying at least a tertiary-level education in order to have acquired such experience) are positively related to R&D investment. These results indicate that the impact of universities on R&D expenditure in NTBFs occurs in strategic and entrepreneurial dynamics, and is expressed both directly and indirectly, with consequent implications for R&D capability and innovation.