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Start-ups, firm growth and the consolidation of the French biotech industry

Author

Listed:
  • Avenel, E.
  • Corolleur, F.
  • Gauthier, C.
  • Rieu, C.

Abstract

Based on an original dataset, we analyze empirically the determinants of firm growth in the French biotech industry during two periods, 1996-1999 and 1999-2002. We have two main results. First, Gibrat's law is violated. The growth of annual turnover is influenced by teh initial size of the firm. The effect is non-linear, negative for small firms. Second, location has a significant impact on growth. We use different sets of dummies to characterize location and different measures of firm growth. As a whole, our results point at Marseilles (and its region) and Nanterre (but not Paris and Evry) as favorable places for the growth of firms between 1999 and 2002. For the 1996-1999, the favorable places are Strasbourg (and Alsace) and Rh“ne-Alpes (Lyon/Grenoble). Our analysis thus suggests that the changes in the (notably legal) environment of French biotech firms that took place in 1999 had a drastic effect of the comparative advantages of locations for biotech firms.

Suggested Citation

  • Avenel, E. & Corolleur, F. & Gauthier, C. & Rieu, C., 2005. "Start-ups, firm growth and the consolidation of the French biotech industry," Working Papers 200503, Grenoble Applied Economics Laboratory (GAEL).
  • Handle: RePEc:gbl:wpaper:200503
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    File URL: https://gael.univ-grenoble-alpes.fr/sites/gael/files/doc-recherche/WP/A2005/gael2005-03.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    BIOTECHNOLOGY; INDUSTRIAL CLUSTERING; FIRM GROWTH; FRANCE;

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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