The impact of diversifying and de novo firms on regional innovation performance in an emerging industry: a longitudinal study of the U.S. ethanol industry

Yeolan Lee and Eric A. Fong

Industry and Innovation, 2019, vol. 26, issue 7, 769-794

Abstract: There is growing interest among strategy scholars and policy makers regarding the influence of diversifying and de novo firms on regional innovation activities in emerging industries. This paper examines how the population, entry, and exit of diversifying and de novo firms in regions influence regional innovation output in an emerging industry. Using longitudinal data from the U.S. ethanol industry, we find that the local population and exit of diversifying and de novo firms have differing impacts on regional innovation output. Our findings contribute to the literature on firm heterogeneity, agglomeration, and regional innovation systems.

Date: 2019
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DOI: 10.1080/13662716.2018.1531747

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