Entry, Innovation and Firm Growth



Recent studies have demonstrated the quantitative importance of entry, exit, growth, and decline in the industrial population (see 4Baldwin, 1995). This turnover rewards innovative activity and contributes to productivity growth. Entry is not the only process that causes turnover in the firm population. Growth and decline also occur in the incumbent population. But entry and exit make a significant contribution to the total amount of turnover that takes place.


Small Firm Productivity Growth Percent Level Product Innovation Customer Service 
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© Springer Science+Business Media New York 1999

Authors and Affiliations

  1. 1.Statistics CanadaOttawaCanada

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