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Firm dynamics in manufacturing and services: a broken mirror?

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  • Francesca Lotti

Abstract

This article represents a first attempt in exploring firm dynamics in the service industry as a whole. A huge body of empirical literature is focused on manufacturing firms, while only recent contributions shed some light in selected services sectors. Using a unique data set from the Italian National Institute for Social Security (INPS), we compare the patterns of entry, growth, and survival performance of firms belonging to the manufacturing and to the service industry. It turns out that industry dynamics in services, in terms of stylized facts, seem to mirror the one in manufacturing. Moreover, the positive impact of firm size on survival is reduced when age is controlled for, suggesting the existence of a learning mechanism, more pronounced in manufacturing than in services. Copyright 2007 , Oxford University Press.

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Bibliographic Info

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

Volume (Year): 16 (2007)
Issue (Month): 3 (June)
Pages: 347-369

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Handle: RePEc:oup:indcch:v:16:y:2007:i:3:p:347-369

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Cited by:
  1. Castellacci, Fulvio & Zheng, Jinghai, 2010. "Technological regimes, Schumpeterian patterns of innovation and firm level productivity growth," MPRA Paper 27588, University Library of Munich, Germany.
  2. Ioannis Giotopoulos & Georgios Fotopoulos, 2010. "Intra-Industry Growth Dynamics in the Greek Services Sector: Firm-Level Estimates for ICT-Producing, ICT-Using, and Non-ICT Industries," Review of Industrial Organization, Springer, vol. 36(1), pages 59-74, February.
  3. Alex Coad & Werner Hölzl, 2009. "On the Autocorrelation of Growth Rates," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 139-166, June.
  4. David Neumark & Brandon Wall & Junfu Zhang, 2008. "Do Small Businesses Create More Jobs? New Evidence from the National Establishment Time Series," NBER Working Papers 13818, National Bureau of Economic Research, Inc.
  5. Lee, Chang-Yang, 2010. "A theory of firm growth: Learning capability, knowledge threshold, and patterns of growth," Research Policy, Elsevier, vol. 39(2), pages 278-289, March.
  6. Castellacci, Fulvio, 2007. "Technological regimes and sectoral differences in productivity growth," MPRA Paper 27598, University Library of Munich, Germany.

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