This paper discusses the effects of the existence of natural and/or exogenously imposed thresholds in firm size distributions on estimations of the relation between firm size and the variance in firm growth rates. We argue that these estimations are upwardly biased whenever the threshold...

The aim of this paper is to understand what economic mechanisms may cause the Law of Proportionate Effect to break down for fast-growing and shrinking firms. Recent evidence has highlighted that the first-order coefficients of quantile auto-regression of firm size decline across quantiles. Our...

Although innovation is essential to build a competitive advantage and survive in the long run, some firms choose to exit, through mergers and acquisitions (M&As), or radically change their business portfolio and identity. This paper examines how innovative capabilities influence the decision of...

The paper investigates the relationship between the strong inertia of finns profits and the persistence in innovative activities. The empirical analysis implements a non-parametric approach based on modelling the dynamics of the evolving cross-section distributions to analyse firms'...

The paper investigates the effects of mergers and acquisitions (M&A) on corporate research and development (R&D) strategies using Community Innovation Survey data on the Dutch manufacturing sector. The focus of the research is whether M&A affect corporate innovation strategies, favouring...

Using a game theoretical model on firms' simultaneous investments in product and process innovation, we deduct and empirically test hypotheses on the optimal R&D portfolio, investment, performance, and dynamic efficiency of R&D for acquisitions and in independently competing firms. We use...