Do Manufacturing Entrepreneurs in Australia Have (or Develop) a Productivity Advantage?

33 Pages Posted: 31 Oct 2017

See all articles by Sasan Bakhtiari

Sasan Bakhtiari

Australian Department of Industry; Crawford School, ANU

Date Written: October 29, 2017

Abstract

Young firms are integral to productivity enhancing resources reallocation. However, they need to be more productive than the average firm to play that part. In Australia, manufacturing entrepreneurs are quite unproductive upon entry. Yet, the productivity of those that survive makes a quantum leap in one year and starts to converge to that of the mature firms. Those entrepreneurs that grow substantially by age three, termed as transformative, have a major productivity advantage. Interesting productivity dynamics are also afoot for entrepreneurs located within clusters of firms and patents that lead to productivity advantages. The findings shed light on a multitude of externalities affecting the productivity of young firms and have implications for the related government policies.

Keywords: Entrepreneurship, Survival, Productivity, Growth, Clusters, Patents

JEL Classification: D24, L26, L6, M13, R12

Suggested Citation

Bakhtiari, Sasan, Do Manufacturing Entrepreneurs in Australia Have (or Develop) a Productivity Advantage? (October 29, 2017). Available at SSRN: https://ssrn.com/abstract=3061612 or http://dx.doi.org/10.2139/ssrn.3061612

Sasan Bakhtiari (Contact Author)

Australian Department of Industry ( email )

341 George Street
Sydney, NSW 2000
Australia

HOME PAGE: http://sites.google.com/site/sasanbakhtiari

Crawford School, ANU ( email )

7 Liversidge Street
Lennox Crossing
Canberra, ACT 0200
Australia

HOME PAGE: http://sites.google.com/site/sasanbakhtiari

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