TY - JOUR
T1 - Innovation and firm growth in high-tech sectors
T2 - a quantile regression approach
AU - Coad, A
AU - Rao Nicholson, Rekha
PY - 2008/5
Y1 - 2008/5
N2 - 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 innovative activity. 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 firm’. Using a quantile regression approach, we observe that innovation is of crucial importance for a handful of ‘superstar’ fast-growth firms.
AB - 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 innovative activity. 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 firm’. Using a quantile regression approach, we observe that innovation is of crucial importance for a handful of ‘superstar’ fast-growth firms.
UR - http://www.scopus.com/inward/record.url?scp=41749089115&partnerID=8YFLogxK
UR - http://dx.doi.org/10.1016/j.respol.2008.01.003
UR - http://www.scopus.com/inward/record.url?eid=2-s2.0-41749089115&partnerID=8YFLogxK
U2 - 10.1016/j.respol.2008.01.003
DO - 10.1016/j.respol.2008.01.003
M3 - Article
SN - 0048-7333
VL - 37
SP - 633
EP - 648
JO - Research Policy
JF - Research Policy
IS - 4
ER -