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A matter of life and death: innovation and firm survival

Year: 2005

Type: article

Abstract: This article examines the effects of innovation on survival using data on all manufacturing firms active in the Netherlands and the Community Innovation Survey. By estimating a parametric duration model, we show that firms benefit from an innovation premium that extends their life expectancy, independent of firm-specific traits such as age and size. Process innovation in particular seems to have a distinctive effect on survival. Furthermore, survival chances increase with the age and growth rate of a firm, the latter being more crucial than initial size. Finally, high intensity technology sectors are the most favorable to firm’s survival.

Source: Industrial and Corporate Change

DOI: 10.1093/icc/dth081

Author: E. Cefis

Institutions: University of Bergamo, Utrecht University, Erasmus University Rotterdam

Language: English

Topic: Firm Innovation and Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W2161106910

FWCI: 24.61

Cites: 58

Cited by: 521

Related to: 9