Innovation, firm survival and productivity: the state of the art

M. Ugur, M. Vivarelli*

*Corresponding author for this work

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    9 Citations (Web of Science)

    Abstract

    We review the theoretical underpinnings and the empirical findings of the literature that investigates the effects of innovation on firm survival and firm productivity, which constitute the two main channels through which innovation drives growth. We aim to contribute to the ongoing debate along three paths. First, we discuss the extent to which the theoretical perspectives that inform the empirical models allow for heterogeneity in the effects of R&D/innovation on firm survival and productivity. Secondly, we draw attention to recent modelling and estimation effort that reveals novel sources of heterogeneity, non-linearity and volatility in the gains from R&D/innovation, particularly in terms of its effects on firm survival and productivity. Our third contribution is to link our findings with those from prior reviews to demonstrate how the state of the art is evolving and with what implications for future research.

    Original languageEnglish
    Pages (from-to)433-467
    Number of pages35
    JournalEconomics of Innovation and New Technology
    Volume30
    Issue number5
    Early online date24 Oct 2020
    DOIs
    Publication statusPublished - 4 Jul 2021

    JEL classifications

    • o40 - Economic Growth and Aggregate Productivity: General
    • o32 - Management of Technological Innovation and R&D

    Keywords

    • Innovation
    • R&D
    • productivity
    • survival
    • RESEARCH-AND-DEVELOPMENT
    • HIGH-TECH SECTORS
    • DEVELOPMENT CHOICE
    • DEVELOPMENT INVESTMENT
    • POST-ENTRY PERFORMANCE
    • IMPACT
    • MODELS
    • BUSINESS SURVIVAL
    • GROWTH
    • SAMPLE SELECTION

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