1887

OECD Science, Technology and Industry Working Papers

The OECD Directorate for Science, Technology and Innovation (STI) leads OECD research on the contribution of science, technology and industry to well-being and economic growth. STI Working Papers cover a broad range of topics including definition and measurement of science and technology indicators, global value chains, and research on policies to promote innovation. These technical or analytical working papers are prepared by staff or outside consultants to share early insights and elicit feedback.

English

Business Dynamics in Europe

This study presents evidence on firm entry and exit, growth and survival derived with new data from Eurostat, covering nine European Union member countries. One contribution of the study is an analysis of the role of data quality for studies of firm demographics. Confronting results obtained with the Eurostat data with those of a previous OECD cross-country firm-level data project reveals that different size thresholds and difficulties in distinguishing genuine firm entry and exit from mergers & acquisitions, ownership changes or changes in legal form can have sizeable impacts on results. Cross-country differences in firm entry and exit rates are analysed with a special emphasis on detailed information and communication technology (ICT) related sectors, which has not been possible with previously available cross-country data. After controlling for some basic factors, such as countries’ industry composition, crosscountry differences in entry and exit rates in mature sectors turn out ...

English

Keywords: exit, survival, entry, micro data
JEL: M13: Business Administration and Business Economics; Marketing; Accounting; Personnel Economics / Business Administration / New Firms; Startups; L11: Industrial Organization / Market Structure, Firm Strategy, and Market Performance / Production, Pricing, and Market Structure; Size Distribution of Firms; G33: Financial Economics / Corporate Finance and Governance / Bankruptcy; Liquidation; C81: Mathematical and Quantitative Methods / Data Collection and Data Estimation Methodology; Computer Programs / Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
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