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Is the R&D Behaviour of Fast Growing SMEs Different? Evidence from CIS III Data for 16 Countries

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Author Info
Werner Hölzl (WIFO)

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Abstract

This paper studies the R&D behaviour of fast growing SMEs using CIS III data for 16 countries. We group the countries into three groups that roughly have the same position in technological development. The first finding is that R&D is more important to high growth SMEs in countries that are closer to the technological frontier. The second finding is that high growth SMEs are more innovative than non-high-growth SMEs only for countries close to the technological frontier. This suggests that gazelles derive much of their drive from the exploitation of comparative advantages. From a policy perspective this suggests that there are important limits to centralise policies that aim at fostering high growth SMEs.

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Publisher Info
Paper provided by WIFO in its series WIFO Working Papers with number 327.

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Length: 24 pages
Date of creation: 21 Aug 2008
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Handle: RePEc:wfo:wpaper:y:2008:i:327

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Keywords: R&D; high growth firms; Europe; CIS;

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  4. Verspagen, Bart, 2007. "The Spatial Hierarchy of Technological Change and Economic Development in Europe," UNU-MERIT Working Paper Series 012, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  5. Freel, Mark S, 2000. " Do Small Innovating Firms Outperform Non-innovators?," Small Business Economics, Springer, vol. 14(3), pages 195-210, May. [Downloadable!] (restricted)
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  9. Coad, Alex & Rao, Rekha, 2008. "Innovation and firm growth in high-tech sectors: A quantile regression approach," Research Policy, Elsevier, vol. 37(4), pages 633-648, May. [Downloadable!] (restricted)
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  10. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, 01. [Downloadable!] (restricted)
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