Mayflies and long-distance runners: The effects of new business formation on industry growth

Oliver Falck

No V-39-05, Passauer Diskussionspapiere, Volkswirtschaftliche Reihe from University of Passau, Faculty of Business and Economics

Abstract: This paper analyzes the effects of new business formation on industry growth. Dynamic panel techniques are used to test two hypotheses. First, does hit-andrun competition secure efficiency in an industry? Second, do innovative startups lead to amplified innovations by diminishing the knowledge filter? The results illustrate how new businesses can be viewed as either mayflies or longdistance runners.

Keywords: Entry and exit; growth; hit-and-run competition; innovation; dynamic panel techniques (search for similar items in EconPapers)
JEL-codes: L16 M13 O31 O41 (search for similar items in EconPapers)
Date: 2005
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https://www.econstor.eu/bitstream/10419/55008/1/68424411X.pdf (application/pdf)

Related works:
Journal Article: Mayflies and long-distance runners: the effects of new business formation on industry growth (2007)
Working Paper: Mayflies and long-distance runners: The effects of new business formation on industry growth (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:upadvr:v3905

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