The Post-Entry Performance of Irish Plants: Does a plant's Technological Activity Matter?
Is Research and Development activity an important determinant of the probability that a plant will survive? We model the survival of a cohort of Indigenous plants over the period 1986 to 1996 as a function of sectoral and firm characteristics. We use a firm-level dataset provided by Forfás, the policy and advisory board for industrial development in Ireland. We conclude that R&D activity is an important factor which increases the probability of survival for that plant. Specifically, R&D active indigenous plants had a higher probability of surviving the entire period 1986-1996 than non-R&D active plants. We show that this result is robust to alternative measures of technological activity in indigenous plants.
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