THE RISKS OF INNOVATION: ARE INNOVATING FIRMS LESS LIKELY TO DIE?

• 成果类型: Article
• 署名作者: Fernandes, Ana M.; Paunov, Caroline
• 署名单位: The World Bank; Organisation for Economic Co-operation & Development (OECD)
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00446
• 发表日期: 2015-07
• 页码: 638-653
• 关键词: DEVELOPING-COUNTRIES; plant-survival; duration; GROWTH; PRODUCTIVITY; models; entry; EXIT; TECHNOLOGY; DYNAMICS

摘要

While innovation matters for competitiveness, it may expose firms to survival risks. Using plant-product data for Chile and discrete-time hazard models, we show that innovating plants have a lower hazard of exit. However, risk has a strong impact on the innovation-exit relationship: only innovators that retain diversified sources of revenue or face lower market risk are less likely to die. Single-product innovators are at greater risk of exiting. Exposure to technical risk does not affect exit probabilities differentially. We provide tentative evidence that single-product innovators have higher profits, which helps to rationalize their innovation decision despite the increased risk of exit.