Firm Age and Innovation

Posted: 2 Oct 2008

See all articles by Natarajan Balasubramanian

Natarajan Balasubramanian

Syracuse University - Whitman School of Management

Jeongsik Lee

University of California, Los Angeles (UCLA) - Policy Area

Multiple version iconThere are 2 versions of this paper

Date Written: October 2008

Abstract

We examine how firm age relates to innovtion quality, and how this relationship varies depending on the nature of technology. Using data on patents of COMPUSTAT firms, we find that firm age is negatively related to technical quality, and that this effect is greater in technologically active areas. The economic implication of this effect is substantial; each additional year reduces the impact of a 10% increase in R&D intensity on the firm's market value by over 3%.

Suggested Citation

Balasubramanian, Natarajan and Lee, Jeongsik, Firm Age and Innovation (October 2008). Industrial and Corporate Change, Vol. 17, Issue 5, pp. 1019-1047, 2008, Available at SSRN: https://ssrn.com/abstract=1276646 or http://dx.doi.org/dtn028

Natarajan Balasubramanian

Syracuse University - Whitman School of Management ( email )

United States

Jeongsik Lee

University of California, Los Angeles (UCLA) - Policy Area ( email )

110 Westwood Plaza
Los Angeles, CA 90095
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
697
PlumX Metrics