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Entry, Innovation and Exit from LAN Switch Industry

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  • Roberto Fontana

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

  • Lionel Nesta

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

We investigate whether the form of exit is triggered by the form of entry and technical expertise, an exercise which has been persistently missing in the literature, for a sample of 121 firms in the LAN switch industry. We find that pre-entry experience, technical expertise, and intangible assets are important determinants of firm survival. Extending the analysis to the case of heterogeneous exit, we find that firms with high pre-entry experience and higher technical expertise are more likely to exit by acquisition than by failure. Conversely, possessing a larger intangible capital and previous experience in related markets does not lead to a higher probability of being acquired.

Suggested Citation

  • Roberto Fontana & Lionel Nesta, 2007. "Entry, Innovation and Exit from LAN Switch Industry," SciencePo Working papers Main hal-00973045, HAL.
    • Handle: RePEc:hal:spmain:hal-00973045
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-00973045
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    References listed on IDEAS

    as
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