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Size, Innovation and Internationalization: A Survival Analysis of Italian Firms

The birth of new firms and their survival in the market are often seen as crucial for economic growth and competitiveness in a modern economy. This paper focuses on business demography of Italian firms, using an original dataset obtained by merging Capitalia-Reprint and AIDA, to identify the relationships among firms’ characteristics their demographic dynamics and survival. We show that size and technological level affect survival probability. Internationalized firms show higher failure risk: on average competition is stronger on international markets, forcing firms to be more efficient. An Italian long lasting successful internationalized firm is a high-tech, large and innovating firm.

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Paper provided by Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa in its series Working Papers - Economics with number wp2007_07.

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Length: 17 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:frz:wpaper:wp2007_07
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