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A matter of life and death: innovation and firm survival

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Author Info
Elena Cefis
Orietta Marsili
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. Copyright 2005, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Industrial and Corporate Change.

Volume (Year): 14 (2005)
Issue (Month): 6 (December)
Pages: 1167-1192
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:oup:indcch:v:14:y:2005:i:6:p:1167-1192

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Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
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  1. Serguei Kaniovski & Michael Peneder, 2008. "Determinants of firm survival: a duration analysis using the generalized gamma distribution," Empirica, Springer, vol. 35(1), pages 41-58, March. [Downloadable!] (restricted)
  2. Cristiana Benedetti Fasil, 2009. "Product and Process Innovation in a Growth Model of Firm Selection," Economics Working Papers ECO2009/30, European University Institute. [Downloadable!]
  3. Hielke Buddelmeyer & Paul H. Jensen & Elizabeth Webster, 2006. "Innovation and the Determinants of Firm Survival," IZA Discussion Papers 2386, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Erik Stam & Roy Thurik & Peter van der Zwan, 2008. "Entrepreneurial Exit in Real and Imagined Markets," Tinbergen Institute Discussion Papers 08-031/3, Tinbergen Institute, revised 31 Dec 2008. [Downloadable!]
    Other versions:
  5. Giulio Bottazzi & Marco Grazzi & Angelo Secchi & Federico Tamagni, 2007. "Assessing the Impact of Credit Ratings and Economic Performance on Firm Default," LEM Papers Series 2007/15, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  6. Nikolinka Fertala, 2008. "The shadow of death: do regional differences matter for firm survival across native and immigrant entrepreneurs?," Empirica, Springer, vol. 35(1), pages 59-80, March. [Downloadable!] (restricted)
  7. Christian Helmers & Mark Rogers, 2008. "Innovation and the Survival of New Firms Across British Regions," Economics Series Working Papers 416, University of Oxford, Department of Economics. [Downloadable!]
  8. Elena Cefis & Anna Sabidussi & Hans Schenk, 2007. "Do Mergers of Potentially Dominant Firms foster Innovation? An Empirical Analysis for the Manufacturing Sector," Working Papers 07-20, Utrecht School of Economics. [Downloadable!]
  9. Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2008. "Firm survival: methods and evidence," Empirica, Springer, vol. 35(1), pages 1-24, March. [Downloadable!] (restricted)
  10. Cefis, E. & Marsili, O., 2007. "Going, Going, Gone. Innovation and Exit in Manufacturing Firms," Research Paper ERS-2007-015-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
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