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Old firms and new products: Does experience increase survival? ESRI WP584, February 2018

Lawless, Martina and Studnicka, Zuzanna (2018) Old firms and new products: Does experience increase survival? ESRI WP584, February 2018. [Working Paper]

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    We examine the relationship between exporting experience and the duration of firm export product flows. We find that more experienced firms (in years of exporting) show a higher probability of failure associated with the introduction of new products. Although apparently counter-intuitive, we show that this finding is consistent with models of multiproduct firms in which firms begin exporting by launching the products closest to their core competency and gradually expand their range of products by exporting those that are further away from their core, resulting in lower survival probability for later products. Validating this interpretation, we show that the distance of the new products to the core competency of the firm plays an important role in determining the survival of new products.

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    Item Type: Working Paper
    Subjects for non-EU documents: Countries > Ireland
    EU policies and themes > Policies & related activities > economic and financial affairs > business/private economic activity
    EU policies and themes > External relations > international trade
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Economic and Social Research Institute (ESRI), Dublin > ESRI Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 29 Dec 2019 16:50
    Number of Pages: 21
    Last Modified: 29 Dec 2019 16:50

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