Innovation, Technological Conditions and New Firm Survival

Jensen, Paul H.; Webster, Elizabeth; Buddelmeyer, Hielke

doi:10.1111/j.1475-4932.2008.00509.x

Innovation, Technological Conditions and New Firm Survival

Economic Record, Vol. 84, No. 267, pp. 434-448, December 2008

15 Pages Posted: 10 Dec 2008

See all articles by Paul H. Jensen

Paul H. Jensen

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Elizabeth Webster

Swinburne University of Technology; University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Hielke Buddelmeyer

Melbourne Institute; IZA Institute of Labor Economics

There are 2 versions of this paper

Abstract

High neonatal mortality is one of the most salient 'facts' about firm performance in the industrial organisation literature. We model firm survival and examine the relative influence of firm, industry and macroeconomic factors on survival for new vis-à-vis incumbent firms in Australia. In particular, we focus on how the intensity of innovation in each industry relates to firm survival. Our results imply that while new firms thrive in risky and innovative industries, they are also more susceptible to business cycle effects such as changes in the rate of growth of industry profits and the availability of equity finance.

JEL Classification: L16, M13

Suggested Citation: Suggested Citation

Jensen, Paul H. and Webster, Elizabeth M. and Buddelmeyer, Hielke, Innovation, Technological Conditions and New Firm Survival. Economic Record, Vol. 84, No. 267, pp. 434-448, December 2008, Available at SSRN: https://ssrn.com/abstract=1311546 or http://dx.doi.org/10.1111/j.1475-4932.2008.00509.x