- A-Z
- Jena Economic Resea...
- Volume 8
- New Business Format...
New Business Formation and the Productivity of
Manufacturing Incumbents: Effects and Mechanisms
- Abgebildete Person
- Erschienen
- 25. Oktober 2014
- Nummer des Discussion-Papers
-
2014-025
- Schlagwort(e)
-
incumbent firms
New business formation
productivity
- Zusammenfsg.
-
We analyze the effect of new business formation on the productivity of incumbent manufacturing establishments. We obtain robust empirical evidence of productivity improvements that are due to the emergence of new businesses in the same industry, that is, on the output market. This effect is spatially limited to the respective region. Regional competition from new businesses on the input market and cross-industry effects are not related to incumbents’ productivity changes. The effect that new competition has on incumbents is moderated by an incumbent’s distance from the technological frontier; incumbents close to the frontier exhibit a more pronounced positive reaction.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- JEL-Classification for JER
- L26 - Entrepreneurship ; D20 - General ; O12 - Microeconomic Analyses of Economic Development