Premium
Innovation, Technological Conditions and New Firm Survival *
Author(s) -
JENSEN PAUL H.,
WEBSTER ELIZABETH,
BUDDELMEYER HIELKE
Publication year - 2008
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2008.00509.x
Subject(s) - salient , equity (law) , economics , business , business cycle , industrial organization , macroeconomics , political science , law , artificial intelligence , computer science
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.