Young innovative companies: The new high-growth firms?
AbstractYoung Innovative Companies (YIC) gained increasing attention from governments and scholars due to their expected high innovative performance and growth. Consequently, this study investigates whether Young Innovative Companies, as defined by the EU, grow more than other firms, both in terms of employment and in terms of sales. Using a database of Flemish firms over the years 2001-2008 reveals that these firms do grow significantly more than other firms. In addition, this study shows that YICs can be differentiated from New Technology Based Firms and small young firms in terms of growth, pointing to the importance of combining the individual properties characterizing YICs, that is being young ( 15%). In our estimations, we also take the underlying distribution of the growth variables into account by performing quantile regressions. The results of these quantile regressions reveal that YICs especially grow faster than the other, already fast-growing firms, indicating that they are high performers. In addition, we never find that these companies perform significantly worse than the other firms. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 12-030.
Date of creation: 2012
Date of revision:
Young Innovative Companies; Growth;
Other versions of this item:
- Dirk Czarnitzki & Julie Delanote, 2013. "Young Innovative Companies: the new high-growth firms?," Industrial and Corporate Change, Oxford University Press, vol. 22(5), pages 1315-1340, October.
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-22 (All new papers)
- NEP-CSE-2012-05-22 (Economics of Strategic Management)
- NEP-ENT-2012-05-22 (Entrepreneurship)
- NEP-INO-2012-05-22 (Innovation)
- NEP-SBM-2012-05-22 (Small Business Management)
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