M. Ugur
Inverted-U relationship between R&D intensity and survival: Evidence on scale and complementarity effects in UK data
Ugur, M.; Trushin, E.; Solomon, E.
Authors
E. Trushin
E. Solomon
Abstract
Existing evidence on the relationship between R&D intensity and firm survival is varied and often conflicting. We argue that this may be due to overlooking R&D scale effects and complementarity between R&D intensity and market concentration. Drawing on Schumpeterian models of competition and innovation, we address these issues by developing a formal model of firm survival and using a panel dataset of 37,930 of R&D-active UK firms over 1998–2012. We report the following findings: (i) the relationship between R&D intensity and firm survival follows an inverted-U pattern that reflects diminishing scale effects; (ii) R&D intensity and market concentration are complements in that R&D-active firms have longer survival time if they are in more concentrated industries; and (iii) creative destruction as proxied by median R&D intensity in the industry and the premium on business lending have negative effects on firm survival. Other findings concerning age, size, productivity, relative growth, Pavitt technology classes and the macroeconomic environment are in line with the existing literature. The results are strongly or moderately robust to different samples, stepwise estimations, and controls for frailty and left truncation.
Citation
Ugur, M., Trushin, E., & Solomon, E. (2016). Inverted-U relationship between R&D intensity and survival: Evidence on scale and complementarity effects in UK data. Research Policy, 45(7), 1474-1492. https://doi.org/10.1016/j.respol.2016.04.007
Journal Article Type | Article |
---|---|
Acceptance Date | Apr 21, 2016 |
Online Publication Date | May 10, 2016 |
Publication Date | May 10, 2016 |
Deposit Date | May 18, 2016 |
Publicly Available Date | Jul 21, 2016 |
Journal | Research Policy |
Print ISSN | 0048-7333 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 45 |
Issue | 7 |
Pages | 1474-1492 |
DOI | https://doi.org/10.1016/j.respol.2016.04.007 |
Public URL | https://durham-repository.worktribe.com/output/1384239 |
Files
Published Journal Article
(1.4 Mb)
PDF
Publisher Licence URL
http://creativecommons.org/licenses/by/4.0/
Copyright Statement
© 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license
(http://creativecommons.org/licenses/by/4.0/).
You might also like
R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis
(2016)
Journal Article
Downloadable Citations
About Durham Research Online (DRO)
Administrator e-mail: dro.admin@durham.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search