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on Technology and Industrial Dynamics |
| By: | McKelvie, Alexander (Syracuse University); Brattström, Anna (Stockholm School of Economics); Wennberg, Karl (Ratio) |
| Abstract: | This paper seeks to untangle the relationship between new firm’s innovative activities and subsequent growth. We theorize about the inter-related roles of managerial growth willingness, inputs and outputs of innovative activities, and their subsequent link to sales growth. Investigating a longitudinal sample of 282 new Swedish firms reveals a complex set of mediating relationships that, when combined, help explain how innovation affects growth. First, we find growth willingness has an important relationship with innovative inputs such as R&D and market knowledge competence. Second, these inputs affect important innovative outputs such as new product development and the percentage of sales from new products. Third, these outputs directly affect growth – whereas the innovative inputs such as R&D do not have a direct impact. Taken together, our paper highlights the joint importance of managerial attitudes and strategic choices that help to shed new light on the effect of innovation on new firm growth. Implications for research and public policy are discussed. |
| Keywords: | New Firm Growth; Innovation; RD; Growth Willingness |
| JEL: | L22 L26 M13 |
| Date: | 2013–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0206&r=tid |
| By: | Coad, Alex; Segarra Blasco, Agustí, 1958-; Teruel, Mercedes |
| Abstract: | This paper explores the relationship between firm growth, innovation and firm age. We hypothesize that young firms undertake riskier innovation activities and are more oriented towards employment growth than towards harvesting returns in the form of sales growth. Using an extensive sample of Community Innovation Survey for the period 2004-2010, we apply quantile regressions and a Heckman sample selection technique to study the impact of R&D activities on firm growth according to firm age. Our results show that R&D intensity is positively associated with firm growth. However, for young firms R&D shows an increasing influence across the quantiles, while for old firms R&D shows a stable or perhaps decreasing effect over the quantiles. Firm age shows a significant negative impact among young firms, while for the sample of old firms the impact of firm age becomes non-significant. Our Heckman estimations show the evolution of the impact of the R&D on firm growth confirming a significant impact on sales and productivity growth, while the impact is negligible for employment growth. Keywords: firm age, firm growth, innovation, quantile regression. JEL CODES: L25, L20 |
| Keywords: | Empreses -- Creixement, Organització industrial, Innovacions tecnològiques, 33 - Economia, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/211886&r=tid |
| By: | Russell Thomson (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne) |
| Abstract: | This paper presents new estimates of the efficacy of R&D tax incentives using cross-countrycross-industry data and a novel measure of tax policy that incorporates differences in the average capital–labour ratio in R&D investment across industries and variation in the tax treatment of different expenditure types across countries and over time. The results suggest that, in the short run, industry increases R&D investment by 0.24 dollars for every dollar of tax revenue forgone. The results appear to be more robust than estimates based on crosscountry or firm-level data. |
| Keywords: | Innovation policy, R&D tax credits, determinants of R&D investment |
| JEL: | E22 O31 O57 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2013n18&r=tid |