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Does the Hazard Rate for New Plants Vary between Low- and High-Tech Industries?

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Author Info
Mahmood, Talat
Abstract

Based on a longitudinal data base the hazard rates of over 12000 newly established plants in U.S. manufacturing industry in 1976 are estimated and then compared between low and high-tech industries. It is found that the hazard rate differs across industries, and it also varies between low and high-tech industries. The hazard rate in low-tech industries is reduced in the presence of scale economies, whereas the exposure to risk tends to be higher in high-tech industries. The influence of start-up size in reducing the hazard rate is apparently similar between low and high-tech industries, but its role is found to be more important in the high-technological industries. Market growth and R&D intensity exert no influence on the hazard rate in either the low- or high-tech industries Copyright 1992 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Small Business Economics.

Volume (Year): 4 (1992)
Issue (Month): 3 (September)
Pages: 201-09
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:sbusec:v:4:y:1992:i:3:p:201-09

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  1. Raquel Ortega-Argilés & Rosina Moreno, 2005. "Firm Competitive Strategies And The Likelihood Of Survival - The Spanish Case," ERSA conference papers ersa05p347, European Regional Science Association. [Downloadable!]
    Other versions:
  2. Bhattacharjee, A. & Higson, C. & Holly, S. & Kattuman, P., 2004. "Business Failure in UK and US Quoted Firms: Impact of Macroeconomic Instability and the Role of Legal Institutions," Cambridge Working Papers in Economics 0420, Faculty of Economics, University of Cambridge. [Downloadable!]
  3. Sian Owen, 2001. "Failures in B2C Companies; Two Examples and Lessons for New Players," Working Paper Series 113, School of Finance and Economics, University of Technology, Sydney. [Downloadable!]
  4. Talat Mahmood, 1996. "Survival Chances of Newly Founded Firms in Berlin: An Evaluation of Firm Registrations and Deregisterations from 1981-1990, Based on Data from Chamber of Commerce. (This paper is only in German!)," CIG Working Papers FS IV 96-19, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
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