IDEAS home Printed from
   My bibliography  Save this article

Can Institutional Change Impact High-technology Firm Growth?: Evidence from Germany’s Neuer Markt


  • David Audretsch


  • Julie Elston



To facilitate the transformation of the German economy from the traditional manufacturing industries towards emerging new technologies, a new segment of the Frankfurt exchange was introduced in 1997 - Der Neue Markt. This study provides evidence that not only did many new firms obtain funding from the Neuer Markt, but that for the first time in recent history, Germany succeeded in enabling smaller firms to grow faster than larger firms. This suggests that the new policies were not only successful in promoting a new type of firm that otherwise might not exist, but in transforming the sources of growth and innovation within the German economy.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • David Audretsch & Julie Elston, 2006. "Can Institutional Change Impact High-technology Firm Growth?: Evidence from Germany’s Neuer Markt," Journal of Productivity Analysis, Springer, vol. 25(1), pages 9-23, April.
  • Handle: RePEc:kap:jproda:v:25:y:2006:i:1:p:9-23
    DOI: 10.1007/s11123-006-7123-0

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    1. Bürgel, Oliver & Fier, Andreas & Licht, Georg & Murray, Gordon, 2000. "Internationalisation of high-tech start-ups and fast growth-evidence for UK and Germany," ZEW Discussion Papers 00-35, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Julie Elston & Sandy Chen & Alois Weidinger, 2016. "The role of informal capital on new venture formation and growth in China," Small Business Economics, Springer, vol. 46(1), pages 79-91, January.
    2. Oleg Badunenko, 2007. "Downsizing in German Chemical Manufacturing Industry during the 1990s: Why Small Is Beautiful?," Discussion Papers of DIW Berlin 722, DIW Berlin, German Institute for Economic Research.
    3. repec:kap:iaecre:v:12:y:2006:i:2:p:191-202 is not listed on IDEAS
    4. Quader, Syed Manzur, 2017. "Differential effect of liquidity constraints on firm growth," Review of Financial Economics, Elsevier, vol. 32(C), pages 20-29.
    5. Elston, Julie Ann & Yang, J. Jimmy, 2010. "Venture capital, ownership structure, accounting standards and IPO underpricing: Evidence from Germany," Journal of Economics and Business, Elsevier, vol. 62(6), pages 517-536, November.
    6. Oleg Badunenko, 2010. "Downsizing in the German chemical manufacturing industry during the 1990s. Why is small beautiful?," Small Business Economics, Springer, vol. 34(4), pages 413-431, May.

    More about this item


    Entrepreneurship; Germany; Growth; Innovation; Institutions; O3; O4; L25;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jproda:v:25:y:2006:i:1:p:9-23. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.