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Original Articles

Mayflies and long-distance runners: the effects of new business formation on industry growth

Pages 919-922 | Published online: 28 Sep 2007
 

Abstract

This note analyses the effects of new business formation on industry growth. Dynamic panel techniques are used to test two hypotheses. First, does hit-and-run competition secure efficiency in an industry? Second, do innovative startups lead to amplified innovations by diminishing the knowledge filter? The results illustrate how new businesses can be viewed as either mayflies or long-distance runners.

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