Economics at your fingertips  

Does innovation facilitate firm survival? Evidence from Chinese high-tech firms

Dongyang Zhang, Wenping Zheng and Lutao Ning

Economic Modelling, 2018, vol. 75, issue C, 458-468

Abstract: The impact of innovation mechanisms on firm survival remains inconclusive in the existing literature, especially when we consider the case of a rapidly growing emerging economy. Using a unique firm-level dataset of 14,065 Chinese high-tech start-ups from 2007 to 2013, we employ a discrete time hazard model to study the impact of differences in internal and external innovation mechanisms, specifically, innovation efficiency and spillover effect derived from trade, on the likelihood of firms' survival as these factors are currently less understood. Bigger and older technology-intensive firms tend to have lower probalility of exit. Our results suggest that innovation as measured by patents, innovation efficiency and firms' import and export activities can increase the survival rate of Chinese high-tech firms. This implies that policy makers should focus on promoting both internal and external innovation mechanisms to improve the survival of indigenous high-tech firms.

Keywords: Innovation; Patents; Survival; High-tech firms; China (search for similar items in EconPapers)
JEL-codes: O30 O31 L11 C41 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-02-23
Handle: RePEc:eee:ecmode:v:75:y:2018:i:c:p:458-468