Technological Regimes and Firm Survival: Evidence Across Sectors and Over Time

• Published in: Small business economics Vol. 30; no. 2; pp. 175 - 186
• Main Authors: Lin, Pei-Chou, Huang, Deng-Shing
• Format: Journal Article
• Language: English
• Published: Boston Springer 01.02.2008; Springer US; Springer Nature B.V
• Subjects: Age; Business and Management; Business innovation; Business management; Business structures; Creativity; Datasets; Economic conditions; Empirical research; Employment; Enterprises; Entrepreneurs; Entrepreneurship; Hypotheses; Industrial efficiency; Industrial market; Industrial Organization; Innovations; Management; Manufacturing; Microeconomics; Minimum efficient scale; Research & development expenditures; Research and development; Small businesses; Startups; Studies; Survival; Survival rates; Taiwan; Technological innovation; Technology; Taiwan; L26; technological regimes; firm survival; L1; L2; Taiwanese manufacturing
• ISSN: 0921-898X; 1573-0913
• DOI: 10.1007/s11187-006-9026-x

In addition to the usual variables representing firm-and industry-specific features that impact the firm's survival, this paper uses three R&D related variables to reflect two Schumpeterian technological regimes: creative destruction (the entrepreneurial regime) and creative accumulation (the routinized regime). After controlling for age, size, entry barriers, capital intensity, the profit margin, the concentration ratio, the profit-cost ratio and entry rates, the empirical results confirm the theoretical relationship between technological regimes and the survival rate of new firms: new firms are more likely to survive under the entrepreneurial regime. Moreover, this effect is larger within the younger cohorts of firms than within the older ones.