Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/89300 
Year of Publication: 
2007
Series/Report no.: 
LEM Working Paper Series No. 2006/18
Publisher: 
Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM), Pisa
Abstract: 
We relate innovation to sales growth for incumbent firms in high-tech sectors. A firm, on average, experiences only modest growth and may grow for a number of reasons that may or may not be related to innovativeness. However, given that the returns to innovation are highly skewed and that growth rates distributions are heavy-tailed, it may be misleading to use regression techniques that focus on the average effect for the average firms. Using a quantile regression approach, we observe that innovation is of crucial importance for a handful of superstar fast-growth firms. We also discuss policy implications of our results.
Subjects: 
Innovation
Firm Growth
Quantile Regression
Innovation Policy
Patents
JEL: 
O31
L25
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.