Technology and the Size Distribution of Firms: Evidence from Dutch Manufacturing
AbstractEmpirical studies have shown that the size distribution of firms can be described as a Pareto distribution. However, these studies have focused on large firms and aggregate statistics. Little attention has been placed on the role of technology in shaping firm size distributions. Using a comprehensive dataset of manufacturing firms and the Community Innovation Survey from the Netherlands, the paper investigates the relationship between firm size and technology. It shows that technological factors shape the distribution of firm size, suggesting that the Pareto law is not an invariant property and that technology can constrain the “self-organising” character of industrial economies. Copyright Springer 2005
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Bibliographic InfoArticle provided by Springer in its journal Review of Industrial Organization.
Volume (Year): 27 (2005)
Issue (Month): 4 (December)
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Web page: http://www.springerlink.com/link.asp?id=100336
firm size; Gibrat’s law; innovation; Pareto distribution; L11; L60; O33;
Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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