Does the hazard rate for new plants vary between low- and high-tech industries?
✍ Scribed by Talat Mahmood
- Book ID
- 104751376
- Publisher
- Springer US
- Year
- 1992
- Tongue
- English
- Weight
- 519 KB
- Volume
- 4
- Category
- Article
- ISSN
- 0921-898X
No coin nor oath required. For personal study only.
✦ Synopsis
Talat M a h m o o d
ABSTRACT. Based on a longitudinal data base the hazard rates of over 12000 newly established plants in U.S. manufacturing industry in 1976 are estimated and then compared between low and high-tech industries. It is found that the hazard rate differs across industries, and it also varies between low and high-tech industries. The hazard rate in lowtech industries is reduced in the presence of scale economies, whereas the exposure to risk tends to be higher in high-tech industries. The influence of start-up size in reducing the hazard rate is apparently similar between low and high-tech industries, but its role is found to be more important in the high-technological industries. Market growth and R&D intensity exert no influence on the hazard rate in either the low-or high-tech industries.