We provide evidence that both human capital and R&D increase the likelihood that a firm will be a high-growth firm in the industry. However, different from human capital, being an R&D active firm also increases the probability of substantial decline or failure, underscoring the risky nature of innovation. Quantile regression results show that, different from R&D, human capital is growth-enhancing for all firms, hence also those located in the lower quantiles of the distribution of growth rates across firms.
- l20 - Firm Objectives, Organization, and Behavior: General
- o25 - Industrial Policy
- o32 - Management of Technological Innovation and R&D
- j24 - "Human Capital; Skills; Occupational Choice; Labor Productivity"
- Firm growth
- high-growth firms
- human capital
- quantile regression
- firm size
- growth rate
- industrial development
- regression analysis
- research and development
Goedhuys - Degelin, M., & Sleuwaegen, L. (2016). High-growth versus declining firms: The differential impact of human capital and R&D. Applied Economics Letters, 23(5), 369-372. https://doi.org/10.1080/13504851.2015.1076139