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Entry, Innovation and Exit from LAN Switch Industry

Listed author(s):
  • Roberto Fontana

    (OFCE - OFCE - Sciences Po)

  • Lionel Nesta

    ()

    (OFCE - OFCE - Sciences Po)

We investigate whether the form of exit is triggered by the form of entry and technical expertise, an exercise which has been persistently missing in the literature, for a sample of 121 firms in the LAN switch industry. We find that pre-entry experience, technical expertise, and intangible assets are important determinants of firm survival. Extending the analysis to the case of heterogeneous exit, we find that firms with high pre-entry experience and higher technical expertise are more likely to exit by acquisition than by failure. Conversely, possessing a larger intangible capital and previous experience in related markets does not lead to a higher probability of being acquired.

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File URL: https://hal-sciencespo.archives-ouvertes.fr/hal-00973045/document
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Paper provided by HAL in its series Working Papers with number hal-00973045.

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Date of creation: Jan 2007
Handle: RePEc:hal:wpaper:hal-00973045
Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-00973045
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