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Innovation and the Survival of New Firms Across British Regions

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  • Christian Helmers
  • Mark Rogers

Abstract

This paper analyses the survival of the complete cohort of more than 162,000 limited companies incorporated in Britain in 2001 over the subsequent five-year period. For this purpose, we estimate firms' hazards of failure and survival functions using nonparametric and semi-parametric techniques. The paper focuses on two important policy-related issues. The first is to what extent survival rates vary across regions in Britain. A second, and related, policy issue concerns innovation. The data available allows us to look at the intellectual property (IP) activity of all British firms, including that of the 162,000 new firms in 2001. The results indicate substantial differences in survival rates across regions, and also that IP activity is associated with a higher probability of survival. These differences across regions, and the importance of IP activity, remain when we condition on a large range of regional, industry and firm-level characteristics shifting firms' hazards of failure.

Suggested Citation

  • Christian Helmers & Mark Rogers, 2008. "Innovation and the Survival of New Firms Across British Regions," Economics Series Working Papers 416, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:416
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    References listed on IDEAS

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    Cited by:

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    2. Ventsislava Nikolova-Minkova, 2022. "Bulgarian and Foreign Trademark Activity in Bulgaria and Bulgarian Trademark Activity Abroad for the Period 2000-2019," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 173-196.
    3. Mirjana Radovic-Markovic, 2012. "Analysis of the Level of Development of Private Sector in Serbia During the Last Decade," Book Chapters, in: João Sousa Andrade & Marta C. N. Simões & Ivan Stosic & Dejan Eric & Hasan Hanic (ed.), Managing Structural Changes - Trends and Requirements, edition 1, volume 1, chapter 13, pages 249-277, Institute of Economic Sciences.
    4. Zhang M. & Mohnen P., 2013. "Innovation and survival of new firms in Chinese manufacturing, 2000-2006," MERIT Working Papers 2013-057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Ornella Wanda Maietta & Fernanda Mazzotta, 2018. "Firm Survival and Innovation: Knowledge Context Matters!," CSEF Working Papers 496, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    6. Ventsislava Nikolova-Minkova, 2022. "The Trademark Application Activity in Bulgaria According to the Nice Classification and Economic Sectors for the Period 2010-2020," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 109-141.

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    More about this item

    Keywords

    Start-ups; Firm Survival; Region; IP;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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