Growth of New Technology-Based Firms: Which Factors Matter?

Growth of New Technology-Based Firms: Which Factors Matter? This paper deals with the explanation of variations in the growth between New Technology-based Firms (NTBFs) and non-innovative firm foundations. Based on theoretical models explaining the growth of firms, hypotheses on potential determinants are derived. The regression results indicate strong correlations between the growth rate on the one hand and firm-specific, founder-specific as well as external factors on the other. These factors influence the growth rates of innovative and non-innovative young firms in different ways. Furthermore, based on the results of multivariate regressions, NTBFs achieve on average higher growth rates than non-innovative firm foundations. Moreover, the net employment effect of those NTBFs founded in 1989/90 is positive. This does not hold for non-innovative young firms, in which the number of jobs destroyed by closures and shrinking firms is larger than the number of new jobs in growing and expanding firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Growth of New Technology-Based Firms: Which Factors Matter?

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Publisher
Springer Journals
Copyright
Copyright © 1999 by Kluwer Academic Publishers
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1023/A:1008138709724
Publisher site
See Article on Publisher Site

Abstract

This paper deals with the explanation of variations in the growth between New Technology-based Firms (NTBFs) and non-innovative firm foundations. Based on theoretical models explaining the growth of firms, hypotheses on potential determinants are derived. The regression results indicate strong correlations between the growth rate on the one hand and firm-specific, founder-specific as well as external factors on the other. These factors influence the growth rates of innovative and non-innovative young firms in different ways. Furthermore, based on the results of multivariate regressions, NTBFs achieve on average higher growth rates than non-innovative firm foundations. Moreover, the net employment effect of those NTBFs founded in 1989/90 is positive. This does not hold for non-innovative young firms, in which the number of jobs destroyed by closures and shrinking firms is larger than the number of new jobs in growing and expanding firms.

Journal

Small Business EconomicsSpringer Journals

Published: Sep 30, 2004

References

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