Innovation and firm growth in high-tech sectors: A quantile regression approach

Alex Coad () and Rekha Rao ()

Research Policy, 2008, vol. 37, issue 4, pages 633-648

Abstract: We relate innovation to sales growth for incumbent firms in high-tech sectors. A firm, on average, experiences only modest growth and may grow for a number of reasons that may or may not be related to innovative activity. However, given that the returns to innovation are highly skewed and that growth rates distributions are heavy-tailed, it may be misleading to use regression techniques that focus on the 'average effect for the average firm'. Using a quantile regression approach, we observe that innovation is of crucial importance for a handful of 'superstar' fast-growth firms.

Date: 2008
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Related works:
Working Paper: Innovation and Firm Growth in High-Tech Sectors: A Quantile Regression Approach (2006)
Working Paper: Innovation and Firm Growth in High-Tech Sectors: A Quantile Regression Approach (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:eee:respol:v:37:y:2008:i:4:p:633-648

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