TY - JOUR
T1 - High-growth versus declining firms
T2 - The differential impact of human capital and R&D
AU - Goedhuys - Degelin, Micheline
AU - Sleuwaegen, L.
N1 - Export Date: 25 May 2016
Correspondence Address: Goedhuys, M.; UNU-MERITNetherlands; email: [email protected]
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PY - 2016
Y1 - 2016
N2 - 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.
AB - 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.
KW - Firm growth
KW - high-growth firms
KW - human capital
KW - quantile regression
KW - R&D
KW - firm size
KW - growth rate
KW - industrial development
KW - innovation
KW - probability
KW - regression analysis
KW - research and development
U2 - 10.1080/13504851.2015.1076139
DO - 10.1080/13504851.2015.1076139
M3 - Article
SN - 1350-4851
VL - 23
SP - 369
EP - 372
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 5
ER -