Recent studies show that the likelihood of survival differs significantly across firms. Both firm and industry characteristics are hypothesized to account for this heterogenity. Using a longitudinal database of manufacturing firms we investigate whether firm or industry characteristics dominate. Our evidence suggests that both firm- and industry-specific characteristics shape new-firm survival during the first years subsequent to entry. However, in the longer run, most of the industry factors have little influence on the likelihood of survival, but firm-specific characteristics still exert a considerable influence in shaping firm survival rates.

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Tinbergen Institute Discussion Paper Series
Tinbergen Institute

Audretsch, D.B, Houweling, P, & Thurik, A.R. (1997). New Firm Survival: Industry versus Firm Effects (No. TI 97-063/3). Tinbergen Institute Discussion Paper Series. Retrieved from