Age, Size, Growth and Survival: UK Companies in the 1980s

Dunne, Paul; Hughes, Alan

doi:10.2307/2950485

Cited by 560 publications

(424 citation statements)

References 26 publications

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“…We treat the introduction of new products and packs as potentially endogenous and instrument for these variables in a dynamic growth model. Similar to some of other studies (e.g., Dunne andHughes, 1994, Bottazzi andSecchi, 2003) we find that smaller firms grow faster than larger ones. Our main result is that the introduction of new formulations, as well as of new packs, has a significant impact on growth in the short run, but only new forms have a long term effect on growth.…”

Section: Introductionsupporting

confidence: 80%

Growth and Returns to New Products and Pack Varieties: The Case of UK Pharmaceuticals

2016

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We use quarterly sales data from the UK pharmaceuticals market between 2003 and 2013 and estimate the impact of new introductions, i.e., new products and pack varieties within an anatomical therapy class on business unit growth. Using a dynamic lag adjustment growth model that accounts for endogeneity of new introductions, we find that a new product contributes to 18 per cent growth of the business unit while a new pack variety leads to 7 per cent growth for the business unit in the long run. Further, we find that there is significant variation in growth by size of firm and that the marginal effect of additional products on growth is larger for smaller business units. However, the marginal effect of pack varieties does not differ by firm size. AbstractWe use quarterly sales data from the UK pharmaceuticals market between 2003 and 2013 and estimate the impact of new introductions, i.e., new products and pack varieties within an anatomical therapy class on business unit growth. Using a dynamic lag adjustment growth model that accounts for endogeneity of new introductions, we find that a new product contributes to 18 per cent growth of the business unit while a new pack variety leads to 7 per cent growth for the business unit in the long run. Further, we find that there is significant variation in growth by size of firm and that the marginal effect of additional products on growth is larger for smaller business units. However, the marginal effect of pack varieties does not differ by firm size.

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Section: Introductionsupporting

confidence: 80%

Growth and Returns to New Products and Pack Varieties: The Case of UK Pharmaceuticals

2016

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“…Age itself, regardless of start-up period, may influence the growth rate (see, for instance, Dunne and Hughes, 1994;Dunne et al, 1989;Evans, 1987). On the one hand, establishments may take some time before they reach their optimal size; on the other hand, long established incumbents may have absolute cost advantages vis-a-vis newer entrants.…”

Section: Plant Growthmentioning

confidence: 99%

Foreign Direct Investment and Local Economic Development: Beyond Productivity Spillovers

Görg

Strobl

2004

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in

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“…If LPE holds firms growth rate should be uncorrelated with factors such as size and age. However, many studies find a negative correlation between firms growth and size (Mansfield, 1962, Evans, 1987, Kumar, 1985, Dunne and Hughes, 1994, McPherson, 1996, Das, 1995, and between firms growth and age (Evans, 1987, Dunne andHughes, 1994). Models of learning provide an explanation for the negative correlation between firm growth, and age and size (Lucas, 1978, Jovanovic, 1982, Pakes and Ericson, 1990.…”

Section: Introductionmentioning

confidence: 99%

The effect of institutional development on the growth of Brazilian firms

Carvalho¹

2008

Rev. Bras. Econ.

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Este artigo foca nos determinantes da taxa de crescimento das firmas no Brasil. Em particular, investigamos as características individuais das empresas que determinam o seu crescimento, como o desenvolvimento institucional afeta a performance da firma e como o desenvolvimento institucional afeta de maneira diversa pequenas e grandes empresas. Nossos resultados, consistentemente com os modelos de crescimento, indicam que taxas de crescimento decrescem com a idade e tamanho da empresa. Conforme o esperado, empresas que pertencem a um grupo econômico, exportam ou mantêm operações no exterior crescem mais rapidamente. Crescimento é negativamente correlacionado com lucratividade. Observamos também que fraco desenvolvimento institucional, mensurado em termos de corrupção e ineficiência do sistema judiciário e baixo desenvolvimento financeiro, tem impacto negativo sobre o crescimento das empresas. O impacto negativo da corrupção e ineficiência do sistema judiciário é mais acentuado em firmas menores. As grandes empresas são as que mais se beneficiam do desenvolvimento financeiro. No geral, nossos resultados indicam que o desenvolvimento institucional pode ser um mecanismo importante para a promoção do crescimento. Além do mais, o baixo desenvolvimento institucional tem o efeito perverso de promover a concentração. This article focuses on the determinants of firm's growth in Brazil. In particular it investigates the individual characteristics of firm that determine its

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Age, Size, Growth and Survival: UK Companies in the 1980s

Cited by 560 publications

References 26 publications

Growth and Returns to New Products and Pack Varieties: The Case of UK Pharmaceuticals

Growth and Returns to New Products and Pack Varieties: The Case of UK Pharmaceuticals

Foreign Direct Investment and Local Economic Development: Beyond Productivity Spillovers

The effect of institutional development on the growth of Brazilian firms

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