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 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.
| Original language | English |
|---|---|
| Pages (from-to) | 633-648 |
| Number of pages | 16 |
| Journal | Research Policy |
| Volume | 37 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2008 May |
| Externally published | Yes |
Keywords
- Fast-growth firms
- Firm growth
- Innovation
- Patents
- Quantile regression
ASJC Scopus subject areas
- Strategy and Management
- Management Science and Operations Research
- Management of Technology and Innovation