Knowledge and Creative Destruction over the Industry Life Cycle - The Case of the German Automobile Industry

Uwe Cantner (), Kristina Dreßler () and Jens J. Krüger ()
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Kristina Dreßler: University of Jena, Faculty of Economics
Jens J. Krüger: University of Jena, Faculty of Economics
Authors registered in the RePEc Author Service: Jens J. Krüger ()

No 05/2005, Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) from Friedrich Schiller University of Jena, School of of Economics and Business Administration

Abstract: This paper investigates how the survival of firms over the industry life cycle is affected by different kinds of knowledge, namely post-entry experience, pre-entry experience, and knowledge acquired by innovative activity. Therefore, a statistical survival analysis is performed for the German automobile industry over the period 1886- 1939 which applies a new approach that links instrumental variable estimation with the Cox regression. The main results are that all three knowledge components exert a significantly positive effect on the survival of firms. Furthermore, innovative activity is able to compensate for lacking pre-entry or post-entry experience, completely in accord with Schumpeterian creative destruction.

Keywords: firm survival; patents; innovation; automobile industry; hazard rates (search for similar items in EconPapers)
JEL-codes: C41 L10 L62 O33 (search for similar items in EconPapers)
Date: 2005-04-30
New Economics Papers: this item is included in nep-ent, nep-ino and nep-tid
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Related works:
Journal Article: Knowledge and Creative Destruction over the Industry Life Cycle: The Case of the German Automobile Industry (2009)
Working Paper: Knowledge and Creative Destruction over the Industry Life Cycle: The Case of the German Automobile Industry (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:jen:jenasw:2005-05

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