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The Post-Entry Performance of Irish Plants: Does a plant's Technological Activity Matter?

  • Allan Kearns
  • Frances Ruane

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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File URL: http://www.tcd.ie/Economics/TEP/1998/9820.pdf
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Paper provided by Trinity College Dublin, Department of Economics in its series Economics Technical Papers with number 9820.

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Date of creation: 1998
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Handle: RePEc:tcd:tcduet:9820
Contact details of provider: Postal: Trinity College, Dublin 2
Phone: (+ 353 1) 6081325
Fax: 6772503
Web page: http://www.tcd.ie/Economics/

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  1. Evans, David S, 1987. "The Relationship between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 567-81, June.
  2. Dunne, T. & Roberts, M.J. & Samuelson, L., 1988. "The Growth And Failure Of U.S. Manufacturing Plants," Papers 1-87-5, Pennsylvania State - Department of Economics.
  3. David G. Blanchflower & Bruce D. Meyer, 1991. "A Longitudinal Analysis of Young Entrepreneurs in Australia and the United States," NBER Working Papers 3746, National Bureau of Economic Research, Inc.
  4. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
  5. Jozef Konings & Patrick P. Walsh, 1997. "The Effect of Real Exchange Rate Movements on the Life Expectancy of Manufacturing Plants in Ireland, 1973-94," Economics Technical Papers 977, Trinity College Dublin, Department of Economics.
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