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Are The Dynamics Of Knowledge-Based Industries Any Different?

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  • Ricardo Paes Mamede

    ()
    (GEE, Ministério da Economia e da Inovação; ISCTE - Instituto Universitário de Lisboa)

  • Daniel Mota

    ()
    (Instituto Nacional de Estatística)

  • Manuel Mira Godinho

    ()
    (Instituto Superior de Economia e Gestão, Universidade Técnica de Lisboa)

Abstract

The concept of «knowledge-based industries» (KBIs) has been widely used both in the academy and in policy-making over the last decade, due to the increasing role those industries play – both in terms of value added and employment – in contemporary, advanced economies. In this paper we discuss the extent to which KBIs differ from other industries in what concerns some of the stylised facts and regularities of industry dynamics usually found in the literature. In particular, we analyse the patterns and the determinants of firm entry and post-entry performance (measured in terms of survival of new firms), comparing KBIs groups with the remaining industries, using data for the Portuguese economy in the second half of the 1990s. We find that KBIs and the firms within them show some signs of distinctiveness in their dynamics as compared to the general case. In particular, on average, KBIs firms have higher survival chances, and entry within the KBIs groups is less responsive to incentives.

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File URL: http://www.gee.min-economia.pt/RePEc/WorkingPapers/mmg.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação in its series GEE Papers with number 0003.

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Length: 22 pages
Date of creation: Nov 2007
Date of revision: Nov 2007
Handle: RePEc:mde:wpaper:0003

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Keywords: knowledge-based industries; market entry; firm survival;

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