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The Post-Entry Performance of Irish Plants: Does a plant's Technological Activity Matter?

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Author Info
Allan Kearns
Frances Ruane

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Abstract

Is Research and Development activity an important determinant of the probability that a plant will survive? We model the survival of a cohort of Indigenous plants over the period 1986 to 1996 as a function of sectoral and firm characteristics. We use a firm-level dataset provided by Forfás, the policy and advisory board for industrial development in Ireland. We conclude that R&D activity is an important factor which increases the probability of survival for that plant. Specifically, R&D active indigenous plants had a higher probability of surviving the entire period 1986-1996 than non-R&D active plants. We show that this result is robust to alternative measures of technological activity in indigenous plants.

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Paper provided by Trinity College Dublin, Department of Economics in its series Economics Technical Papers with number 9820.

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Date of creation: 1998
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Handle: RePEc:tcd:tcduet:9820

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Find related papers by JEL classification:
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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  1. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320. [Downloadable!] (restricted)
  2. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "The Growth and Failure of U.S. Manufacturing Plants," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 671-98, November. [Downloadable!] (restricted)
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  3. Jozef Konings & Patrick P. Walsh, 1997. "The Effect of Real Exchange Rate Movements on the Life Expectancy of Manufacturing Plants in Ireland, 1973-94," Economics Technical Papers 977, Trinity College Dublin, Department of Economics.
  4. Evans, David S, 1987. "The Relationship between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries," Journal of Industrial Economics, Blackwell Publishing, vol. 35(4), pages 567-81, June. [Downloadable!] (restricted)
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Cited by:
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  1. Frances Ruane, 2003. "Foreign direct investment in Ireland," Working Papers 000056, Lancaster University Management School, Economics Department. [Downloadable!]
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