IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Does size or age of innovative firms affect their growth persistence? -Evidence from a panel of innovative Spanish firms-

This study examines serial correlation in employment, sales and innovative sales growth rates in a balanced panel of 3,300 Spanish firms over the years 2002-2009, obtained by matching different waves of the Spanish Encuesta sobre Innovacion en las Empresas, the Spanish innovation survey conducted annually by the Spanish National Statistics Institute (INE). The main objective is to verify whether the changes (increase/decrease) in these figures are persistent over time, whether such persistence (if any) differs between SMEs and larger firms, and if it is affected by a firm's age. To do so, we adopted a semi-parametric quantile regression approach. This methodology is well suited to cases where outliers (high-growth firms) are the subject of investigation and/or when they have to be assumed as being very heterogeneous. Empirical results indicate that among those innovative firms experiencing high employment growth, the smaller and younger grow faster than larger firms, but the jobs they create are not persistent over time. However, while being smaller and younger helps growing more in terms of employment and sales, it is not an advantage when innovative sales growth is considered: in this case larger firms experience faster growth.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://iri.jrc.ec.europa.eu/documents/10180/bf2da533-f98e-4c5d-9eb0-0d5caeedc9c6
Download Restriction: no

Paper provided by Joint Research Centre (Seville site) in its series JRC Working Papers on Corporate R&D and Innovation with number 2012-03.

as
in new window

Length: 25 pages
Date of creation: Sep 2012
Handle: RePEc:ipt:wpaper:201203
Contact details of provider: Postal:
C/ Inca Garcilaso, s/n 41092 Seville

Phone: +34 954 48 8318
Fax: +34 954 48 8300
Web page: https://ec.europa.eu/jrc/en

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Alex Coad & Rekha Rao, 2006. "Innovation and Firm Growth in High-Tech Sectors: A Quantile Regression Approach," LEM Papers Series 2006/18, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  2. José Calvo, 2006. "Testing Gibrat’s Law for Small, Young and Innovating Firms," Small Business Economics, Springer, vol. 26(2), pages 117-123, 03.
  3. Thomas Hatzichronoglou, 1997. "Revision of the High-Technology Sector and Product Classification," OECD Science, Technology and Industry Working Papers 1997/2, OECD Publishing.
  4. Bronwyn H. Hall & Jacques Mairesse, 1992. "Exploring the Relationship Between R&D and Productivity in French Manufacturing Firms," NBER Working Papers 3956, National Bureau of Economic Research, Inc.
  5. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
  6. Alex Coad & Jaganaddha Tamvada, 2012. "Firm growth and barriers to growth among small firms in India," Small Business Economics, Springer, vol. 39(2), pages 383-400, September.
  7. Giulio Bottazzi & Angelo Secchi, 2003. "Common Properties and Sectoral Specificities in the Dynamics of U.S. Manufacturing Companies," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(3_4), pages 217-232, December.
  8. Alex Coad, 2007. "Neoclassical vs evolutionary theories of financial constraints : critique and prospectus," Documents de travail du Centre d'Economie de la Sorbonne r07008, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  9. Alex Coad & Rekha Rao, 2006. "Innovation and market value: a quantile regression analysis," Economics Bulletin, AccessEcon, vol. 15(13), pages 1-10.
  10. Daria Ciriaci, 2011. "Intangible resources: the relevance of training for European firms’ innovative performance," JRC Working Papers on Corporate R&D and Innovation 2011-06, Joint Research Centre (Seville site).
  11. Hart, Peter E & Oulton, Nicholas, 1996. "Growth and Size of Firms," Economic Journal, Royal Economic Society, vol. 106(438), pages 1242-52, September.
  12. Scherer, F M, 1992. "Schumpeter and Plausible Capitalism," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1416-1433, September.
  13. P. Geroski, 1998. "An Applied Econometrician's View of Large Company Performance," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 13(3), pages 271-294, June.
  14. Francesco Bogliacino, 2014. "Innovation and employment: A firm level analysis with European R&D Scoreboard data," Economia, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 15(2), pages 141-154.
  15. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  16. Paloma López-García & Sergio Puente & Ángel Luis Gómez, 2007. "Firm productivity dynamics in Spain," Working Papers 0739, Banco de España;Working Papers Homepage.
  17. Malerba, Franco & Orsenigo, Luigi, 1996. "Schumpeterian patterns of innovation are technology-specific," Research Policy, Elsevier, vol. 25(3), pages 451-478, May.
  18. Jaap W.B. Bos & Ryan C.R. van Lamoen & Mark W.J.L. Sanders, 2011. "Producing Innovations: Determinants of Innovativity and Efficiency," DEGIT Conference Papers c016_060, DEGIT, Dynamics, Economic Growth, and International Trade.
  19. Giulio Bottazzi & Alex Coad & Nadia Jacoby & Angelo Secchi, 2011. "Corporate growth and industrial dynamics: evidence from French manufacturing," Applied Economics, Taylor & Francis Journals, vol. 43(1), pages 103-116.
  20. Alex Coad, 2006. "Towards an Explanation of the Exponential Distribution of Firm Growth Rates," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00113346, HAL.
  21. Coad, Alex, 2007. "Testing the principle of `growth of the fitter': The relationship between profits and firm growth," Structural Change and Economic Dynamics, Elsevier, vol. 18(3), pages 370-386, September.
  22. Gavin C Reid, 1994. "Early Life-Cycle Behaviour of Micro-Firms in Scotland," CRIEFF Discussion Papers 9410, Centre for Research into Industry, Enterprise, Finance and the Firm.
  23. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-670, May.
  24. Fritsch, Michael & Meschede, Monika, 1998. "Product Innovation, Process Innovation, and Size," Freiberg Working Papers 1998,13, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  25. Singh, Ajit & Whittington, Geoffrey, 1975. "The Size and Growth of Firms," MPRA Paper 51715, University Library of Munich, Germany.
  26. Czarnitzki, Dirk & Delanote, Julie, 2012. "Young innovative companies: The new high-growth firms?," ZEW Discussion Papers 12-030, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  27. Pietro Moncada-Paternò-Castello & Peter Voigt, 2012. "Projection of R&D-intensive enterprise growth to the year 2020: Implications for EU policy?," JRC Working Papers on Corporate R&D and Innovation 2012-01, Joint Research Centre (Seville site).
  28. Audretsch, David B., 1995. "Innovation, growth and survival," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 441-457, December.
  29. Chesher, Andrew, 1979. "Testing the Law of Proportionate Effect," Journal of Industrial Economics, Wiley Blackwell, vol. 27(4), pages 403-411, June.
  30. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521608275, October.
  31. Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-43, May.
  32. Giulio Bottazzi & Elena Cefis & Giovanni Dosi, 2002. "Corporate growth and industrial structures: some evidence from the Italian manufacturing industry," Industrial and Corporate Change, Oxford University Press, vol. 11(4), pages 705-723, August.
  33. Alex Coad, 2007. "A Closer Look at Serial Growth Rate Correlation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 31(1), pages 69-82, August.
  34. Giulio Bottazzi & E. Cefis & Giovanni Dosi & Angelo Secchi, 2003. "Invariances and diversities in the evolution of manufacturing industries," Working Papers 03-17, Utrecht School of Economics.
  35. Mariana Mazzucato & Paul A Geroski, 2001. "Learning and the Sources of Corporate Growth," Open Discussion Papers in Economics 43, The Open University, Faculty of Social Sciences, Department of Economics.
  36. Bogliacino, Francesco & Piva, Mariacristina & Vivarelli, Marco, 2012. "R&D and employment: An application of the LSDVC estimator using European microdata," Economics Letters, Elsevier, vol. 116(1), pages 56-59.
  37. José Fariñas & Lourdes Moreno, 2000. "Firms' Growth, Size and Age: A Nonparametric Approach," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 17(3), pages 249-265, November.
  38. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
  39. Stephan Schulmeister, 1990. "Das technologische Profil des österreichischen Außenhandels," WIFO Monatsberichte (monthly reports), WIFO, vol. 63(12), pages 663-675, December.
  40. Kumar, M S, 1985. "Growth, Acquisition Activity and Firm Size: Evidence from the United Kingdom," Journal of Industrial Economics, Wiley Blackwell, vol. 33(3), pages 327-338, March.
  41. Giulio Bottazzi & Angelo Secchi, 2006. "Explaining the distribution of firm growth rates," RAND Journal of Economics, RAND Corporation, vol. 37(2), pages 235-256, 06.
  42. Daria Ciriaci, 2011. "Design and European firms’ innovative performance: A less costly innovation activity for European SMEs?," JRC Working Papers on Corporate R&D and Innovation 2011-08, Joint Research Centre (Seville site).
  43. Francesca Lotti & Enrico Santarelli & Marco Vivarelli, 2003. "Does Gibrat's Law hold among young, small firms?," Journal of Evolutionary Economics, Springer, vol. 13(3), pages 213-235, August.
  44. Acs, Zoltan J. & Isberg, Steven C., 1991. "Innovation, firm size and corporate finance : An initial inquiry," Economics Letters, Elsevier, vol. 35(3), pages 323-326, March.
  45. Audretsch, David B. & Santarelli, Enrico & Vivarelli, Marco, 1999. "Start-up size and industrial dynamics: some evidence from Italian manufacturing," International Journal of Industrial Organization, Elsevier, vol. 17(7), pages 965-983, October.
  46. John Sutton, 1997. "Gibrat's Legacy," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59, March.
  47. Paloma López-García & Sergio Puente & Ángel Luis Gómez, 2009. "Employment generation by small firms in Spain," Occasional Papers 0903, Banco de España;Occasional Papers Homepage.
  48. Raquel Ortega-Argilés & Peter Voigt, 2009. "Business R&D in SMEs," JRC Working Papers on Corporate R&D and Innovation 2009-7, Joint Research Centre (Seville site).
  49. Giulio Bottazzi & Giovanni Dosi & Marco Lippi & Fabio Pammolli & Massimo Riccaboni, 2001. "Innovation and Corporate Growth in the Evolution of the Drug Industry," LEM Papers Series 2001/02, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  50. repec:ebl:ecbull:v:15:y:2006:i:13:p:1-10 is not listed on IDEAS
  51. Geroski, Paul A & Machin, Stephen & Walters, Christopher F, 1997. "Corporate Growth and Profitability," Journal of Industrial Economics, Wiley Blackwell, vol. 45(2), pages 171-189, June.
  52. Michael Peneder, "undated". "Intangible Investment and Human Resources. The New WIFO Taxonomy of Manufacturing Industries," WIFO Working Papers 114, WIFO.
  53. Daria Ciriaci & Pietro Moncada-Paternò-Castello & Peter Voigt, 2012. "Does size or age of innovative firms affect their growth persistence? -Evidence from a panel of innovative Spanish firms-," JRC Working Papers on Corporate R&D and Innovation 2012-03, Joint Research Centre (Seville site).
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ipt:wpaper:201203. 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: (Institute Publication Officer)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.