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Heritage and Firm Survival - An Analysis of German Automobile Spinoffs 1886-1939


  • Kristina von Rhein

    () (Max Planck Institute of Economics)


The theory predicts that spinoffs of successful parents are more successful than others. The success of the parents can be measured in two ways, either in terms of their survival duration or concerning their innovative activity. In this paper, the survival chances of spinoffs in the German automobile industry regarding the success of their parents will be investigated. Therefore it is differentiated between spinoffs of old parents and spinoffs of innovative parents. The results of the Cox regressions show that spinoffs of old parents have better survival chances than those of innovative parents.

Suggested Citation

  • Kristina von Rhein, 2008. "Heritage and Firm Survival - An Analysis of German Automobile Spinoffs 1886-1939," Economics Bulletin, AccessEcon, vol. 12(13), pages 1-8.
  • Handle: RePEc:ebl:ecbull:eb-07l10030

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    References listed on IDEAS

    1. Ron A. Boschma & Rik Wenting, 2007. "The spatial evolution of the British automobile industry: Does location matter?," Industrial and Corporate Change, Oxford University Press, vol. 16(2), pages 213-238, April.
    2. Uwe Cantner & Jens Kruger & Kristina von Rhein, 2011. "Knowledge compensation in the German automobile industry," Applied Economics, Taylor & Francis Journals, vol. 43(22), pages 2941-2951.
    3. Buenstorf, Guido & Klepper, Steven, 2010. "Why does entry cluster geographically? Evidence from the US tire industry," Journal of Urban Economics, Elsevier, vol. 68(2), pages 103-114, September.
    4. Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-583, June.
    5. Klepper, Steven, 2001. "Employee Startups in High-Tech Industries," Industrial and Corporate Change, Oxford University Press, vol. 10(3), pages 639-674, September.
    6. Uwe Cantner & Kristina Dreßler & Jens J. Krüger, 2006. "Firm survival in the German automobile industry," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 33(1), pages 49-60, March.
    7. Michael Dahl & Toke Reichstein, 2007. "Are You Experienced? Prior Experience and the Survival of New Organizations," Industry and Innovation, Taylor & Francis Journals, vol. 14(5), pages 497-511.
    8. Uwe Cantner & Jens J. Krüger & Kristina Von Rhein, 2009. "Knowledge and Creative Destruction over the Industry Life Cycle: The Case of the German Automobile Industry," Economica, London School of Economics and Political Science, vol. 76(301), pages 132-148, February.
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    Cited by:

    1. Klepper, Steven, 2010. "The origin and growth of industry clusters: The making of Silicon Valley and Detroit," Journal of Urban Economics, Elsevier, vol. 67(1), pages 15-32, January.
    2. Broström, Anders & Lööf, Hans & Nabavi, Pardis, 2016. "Inherited Advantage and Spinoff Success," Working Paper Series in Economics and Institutions of Innovation 437, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

    More about this item


    firm survival;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing


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