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Product Innovation and Survival in a High-Tech Industry Author info | Abstract | Publisher info | Download info | Related research | Statistics Roberto Fontana (Department of Economics, University of Pavia and CESPRI - Bocconi University, Milan, Italy.)
Lionel Nesta (Observatoire Fran»cais des Conjonctures Economiques, D¶epartement de Recherche sur l'Innovation et la Concurrence, Valbonne, France.)
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We investigate the relationship between product innovation and firm survival for a sample of 121 firms in a high-tech industry. We find that location near the technological frontier is an important determinant of fim survival. Firms located near the frontier are also more likely to be acquired than to exit by failure if they cannot survive. This suggests that product location in the technology space acts as a signal of firm quality. Possessing a substantial stock of intangible capital, on the other hand, determines neither exit via failure nor exit via acquisition, although it increases the probability of surviving.
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Paper provided by CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy in its series CESPRI Working Papers with number
208.
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Length: pages 34
Date of creation: Dec 2007Date of revision:
Dec 2007Handle: RePEc:cri:cespri:wp208Contact details of provider: Postal: via Sarfatti, 25 - 20136 Milano - Italy Phone: +39.025836.3397 Fax: +39.025836.3399 Web page: http://www.cespri.unibocconi.it/
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Keywords: Product innovation ; survival ; high-tech industry ; Other versions of this item:
Find related papers by JEL classification: L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
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