Innovation and firm growth: Does firm age play a role?
By Alex Coad, A. Segarra, Mercedes Teruel. 2016
890 citations recorded by the source corpus.
This paper explores the relationship between innovation and firm growth for firms of different ages. We hypothesize that young firms undertake riskier innovation activities which may have greater performance benefits (if successful), or greater losses (if unsuccessful). Using an extensive Spanish Community Innovation Survey sample for the period 2004–2012, we apply panel quantile regressions to study the effect of R&D activities on firm growth (i.e. sales growth, productivity growth and employment growth). Our results show that young firms face larger performance benefits from R&D at the upper quantiles of the growth rate distribution, but face larger decline at the lower quantiles. R&D investment by young firms therefore appears to significantly riskier than R&D investment by more mature firms, which suggests some policy implications.
Subfields: Economics and Econometrics, Management of Technology and Innovation
View Paper: https://www.semanticscholar.org/paper/2e6a893ff99383ead9c10161716e66a4cfc16179
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In Economics and Econometrics
In Management of Technology and Innovation
Citations in the corpus
- Innovation and business performance for Spanish SMEs: New evidence from a multi-dimensional approach (2018, background): “It has been noted that smaller and younger firms tend to expand faster since they strive to achieve a minimum efficient scale and/or a minimum market presence in order to withstand competition (Coad et al., 2016; Dobbs and Hamilton, 2007).”
- Born to be green: new insights into the economics and management of green entrepreneurship (2017, background): “…and, at the same time, to internalise negative externalities, regulatory challenges and compliance costs by factoring these into economic decisions upfront and, thus, achieving faster growth and enhanced competitiveness (Ács and Audretsch 1990; Coad et al. 2016; Porter and van der Linde 1995).”