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Are The Dynamics Of Knowledge-Based Industries Any Different?

Author

Listed:
  • Ricardo Paes Mamede

    (GEE, Ministério da Economia e da Inovação; ISCTE - Instituto Universitário de Lisboa)

  • Daniel Mota

    (Instituto Nacional de Estatística)

  • Manuel Mira Godinho

    (Instituto Superior de Economia e Gestão, Universidade Técnica de Lisboa)

Abstract

The concept of «knowledge-based industries» (KBIs) has been widely used both in the academy and in policy-making over the last decade, due to the increasing role those industries play – both in terms of value added and employment – in contemporary, advanced economies. In this paper we discuss the extent to which KBIs differ from other industries in what concerns some of the stylised facts and regularities of industry dynamics usually found in the literature. In particular, we analyse the patterns and the determinants of firm entry and post-entry performance (measured in terms of survival of new firms), comparing KBIs groups with the remaining industries, using data for the Portuguese economy in the second half of the 1990s. We find that KBIs and the firms within them show some signs of distinctiveness in their dynamics as compared to the general case. In particular, on average, KBIs firms have higher survival chances, and entry within the KBIs groups is less responsive to incentives.

Suggested Citation

  • Ricardo Paes Mamede & Daniel Mota & Manuel Mira Godinho, 2007. "Are The Dynamics Of Knowledge-Based Industries Any Different?," GEE Papers 0003, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Nov 2007.
  • Handle: RePEc:mde:wpaper:0003
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    More about this item

    Keywords

    knowledge-based industries; market entry; firm survival;
    All these keywords.

    JEL classification:

    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other

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