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Innovation and Firm Survival Over the Industry Life Cycle - Small Business Economics
We analyze how patents, R&D subsidies, and subsidized R&D collaborations influence firm survival in the German photovoltaics industry. We collected data on 154 firms, covering the whole industry life cycle from the emergence of the industry in 1964 until 2016, including the industry’s shakeout and decline.
Medigy Insights
Firms that invest in product innovation (e.g., product patents) are more likely to survive across an industry’s life cycle, while process innovation and public R&D subsidies show little impact on long-term survival.
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