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Innovation and firm growth in high-tech sectors: A quantile regression approach

Coad, Alex; Rao, Rekha

Authors

Alex Coad

Rekha Rao



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. © 2007 Elsevier B.V. All rights reserved.

Citation

Coad, A., & Rao, R. (2008). Innovation and firm growth in high-tech sectors: A quantile regression approach. Research Policy, 37(4), 633-648. https://doi.org/10.1016/j.respol.2008.01.003

Journal Article Type Article
Publication Date May 1, 2008
Journal Research Policy
Print ISSN 0048-7333
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 37
Issue 4
Pages 633-648
DOI https://doi.org/10.1016/j.respol.2008.01.003
Keywords innovation, firm growth, quantile regression, fast-growth firms, patents
Public URL https://uwe-repository.worktribe.com/output/1012760
Publisher URL http://dx.doi.org/10.1016/j.respol.2008.01.003


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