Abstract

The focus of this empirical study is on business survival amongst a panel of new technology based UK and German firms. This is of great importance for several reasons. Firstly, because survival is the most basic measure of success, particularly in studies evaluating the relative merits of business start-up support programmes and government interventions. Analysing the particular characteristics of surviving and non-surviving businesses may provide some important insights into areas where public policy might intervene to correct for market failures or imperfections. This in turn may lead to higher initial and subsequent growth. As technological advance is so fundamentally related to economic growth, the lessons that we learn from this study are crucial to developing our understanding of critical initial success factors of NTBFs.

The rest of this paper is organised as follows; in section II we review the empirical literature from previous survival studies. In section III we discuss the source of our data. In section IV we present some basic sample statistics. Section V contains our survival analysis and results. We conclude in Section VI.

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