Innovation and firm growth in "complex technology" sectors: a quantile regression approach

Alex Coad () and Rekha Rao-Nicholson

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Abstract: Innovation is commonly seen as the principal engine of economic development. In this paper, we investigate the microfoundations of economic growth by relating innovation to sales growth at the firm-level, for incumbent firms in four «complex technology» sectors. The average firm, which experiences only modest growth, may grow for a number of reasons that may or may not be related to «innovativeness». However, given that firms are heterogeneous and that growth rates distributions are typically heavy-tailed, it may be misleading to use regression techniques that focus on the average firm. Using a quantile regression approach, we observe that innovativeness is of crucial importance for a handful of «superstar» fast-growth firms.

Keywords: quantile regression; firm growth; Innovation; croissance des firmes; régression par quantile (search for similar items in EconPapers)
Date: 2006-06
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00118797
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Citations: View citations in EconPapers (2)

Published in 2006

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Related works:
Working Paper: Innovation and firm growth in "complex technology" sectors: a quantile regression approach (2006)
Working Paper: Innovation and firm growth in "complex technology" sectors: a quantile regression approach (2006)
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