The Risks of Innovation : Are Innovating Firms Less Likely to Die?

• Tác giả: Caroline Paunov
• Ngôn ngữ: eng
• Ký hiệu phân loại: 609.2 Historical, geographic, persons treatment
• Thông tin xuất bản: MIT Press, 2015
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 230577
• Chủ đề: 1. firm exit; 2. firm survival; 3. multi-product firms; 4. product innovation

Tóm tắt

While innovation matters for competitiveness it may expose firms to survival risks. Using plant-product data for Chile and discrete-time hazard models we show that innovating plants have a lower hazard of exit. However, risk impacts strongly on the innovation-exit relationship: only innovators that retain diversified sources of revenue or face lower market risk are less likely to die. Single-product innovators are at greater risk of exiting. Exposure to technical risk does not affect exit probabilities differentially. We provide tentative evidence that single-product innovators have higher profits which helps to rationalize their innovation decision despite the increased risk of exit.