Technology and the size distribution of firms

Evidence from Dutch manufacturing

Research output: Contribution to journalArticle

21 Citations (Scopus)

Abstract

Empirical studies have shown that the size distribution of firms can be described as a Pareto distribution. However, these studies have focused on large firms and aggregate statistics. Little attention has been placed on the role of technology in shaping firm size distributions. Using a comprehensive dataset of manufacturing firms and the Community Innovation Survey from the Netherlands, the paper investigates the relationship between firm size and technology. It shows that technological factors shape the distribution of firm size, suggesting that the Pareto law is not an invariant property and that technology can constrain the "self-organising" character of industrial economies.
Original languageEnglish
Pages (from-to)303-328
Number of pages26
JournalReview of Industrial Organization
Volume27
Issue number4
DOIs
Publication statusPublished - 1 Dec 2005

Fingerprint

Pareto principle
Innovation
Statistics
Size distribution of firms
Manufacturing
Pareto distribution
Self-organizing
Manufacturing firms
Empirical study
Pareto
Large firms
Firm size
Firm size distribution
The Netherlands
Factors
Community Innovation Survey

Keywords

  • Firm size
  • Innovation

Cite this

Technology and the size distribution of firms : Evidence from Dutch manufacturing. / Marsili, O.

In: Review of Industrial Organization, Vol. 27, No. 4, 01.12.2005, p. 303-328.

Research output: Contribution to journalArticle

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