High-growth firms and innovation: an empirical analysis for Spanish firms

Segarra Blasco, Agustí, 1958- and Mercedes Teruel

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: This paper analyses the effect of R&D investment on firm growth. We use an extensive sample of Spanish manufacturing and service firms. The database comprises diverse waves of Spanish Community Innovation Survey and covers the period 2004–2008. First, a probit model corrected for sample selection analyses the role of innovation on the probability of being a high-growth firm (HGF). Second, a quantile regression technique is applied to explore the determinants of firm growth. Our database shows that a small number of firms experience fast growth rates in terms of sales or employees. Our results reveal that R&D investments positively affect the probability of becoming a HGF. However, differences appear between manufacturing and service firms. Finally, when we study the impact of R&D investment on firm growth, quantile estimations show that internal R&D presents a significant positive impact for the upper quantiles, while external R&D shows a significant positive impact up to the median. Keywords : High-growth firms, Firm growth, Innovation activity. JEL Classifications : L11, L25, L26, O30

Keywords: Empreses -- Creixement; Innovacions tecnològiques; Emprenedoria; Investigació industrial; 33 - Economia (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-bec, nep-com, nep-cse, nep-ent, nep-eur, nep-ino, nep-knm, nep-sbm and nep-tid
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Citations: View citations in EconPapers (80)

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Persistent link: https://EconPapers.repec.org/RePEc:urv:wpaper:2072/228402

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