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Product Innovation and Survival in a High-Tech Industry

Author

Listed:
  • Roberto Fontana

    (Department of Economics, University of Pavia and CESPRI - Bocconi University, Milan, Italy.)

  • Lionel Nesta

    (Observatoire Fran»cais des Conjonctures Economiques, D¶epartement de Recherche sur l'Innovation et la Concurrence, Valbonne, France.)

Abstract

We investigate the relationship between product innovation and firm survival for a sample of 121 firms in a high-tech industry. We find that location near the technological frontier is an important determinant of fim survival. Firms located near the frontier are also more likely to be acquired than to exit by failure if they cannot survive. This suggests that product location in the technology space acts as a signal of firm quality. Possessing a substantial stock of intangible capital, on the other hand, determines neither exit via failure nor exit via acquisition, although it increases the probability of surviving.

Suggested Citation

  • Roberto Fontana & Lionel Nesta, 2007. "Product Innovation and Survival in a High-Tech Industry," KITeS Working Papers 208, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Dec 2007.
  • Handle: RePEc:cri:cespri:wp208
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    More about this item

    Keywords

    Product innovation; survival; high-tech industry;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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