Survival of Spinoffs and Other Startups: First Evidence for the Private Sector in Germany, 1976-2008

Daniel Fackler () and Claus Schnabel
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Daniel Fackler: IWH Halle

No 7542, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using a 50 percent sample of all establishments in the German private sector, we report that spinoffs are larger and initially employ more skilled and more experienced workers than other startups. Controlling for these and other differences, we find that spinoffs are less likely to exit than other startups. We show that in West and East Germany and in all sectors investigated pulled spinoffs (where the parent company continues after they are founded) generally have the lowest exit hazards, followed by pushed spinoffs (where the parent company stops operations). The difference between both types of spinoffs is particularly pronounced in the first three years. Contrary to expectations, intra-industry spinoffs are not found to have lower exit hazards in our sample.

Keywords: spinoffs; startups; firm exits; Germany (search for similar items in EconPapers)
JEL-codes: C41 D22 L2 M13 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2013-08
New Economics Papers: this item is included in nep-bec, nep-ent and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published - substantially revised version published as 'Spinoffs in Germany: Characteristics, Survival, and the Role of their Parents', in: Small Business Economics, 2016, 46 (1), 93-114 ( co-authored by Alexandra Schmucker,)

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Related works:
Working Paper: Survival of spinoffs and other startups: First evidence for the private sector in Germany, 1976-2008 (2013)
Working Paper: Survival of spinoffs and other startups: First evidence for the private sector in Germany, 1976 - 2008 (2013)
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