High-growth versus declining firms: the differential impact of human capital and R&D
Goedhuys, Micheline Sleuwaegen, Leo
Goedhuys, Micheline
Sleuwaegen, Leo
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Publication Type
Journal article with impact factor
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Supervisor
Publication Year
2016
Journal
Applied Economics Letters
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Publication Volume
23
Publication Issue
5
Publication Begin page
369
Publication End page
372
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Abstract
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.
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Keywords
Entrepreneurship