Survival and growth of start-ups in innovation- and knowledge-based branches: an empirical analysis of the French ICT sector

Abstract

The ICT sector in France is characterized by intense firm birth rates, but also by a high mortality. Five years after the start-up, only 38.7% of the firms survived, comparing to 51.0% in the middle high technology and 46.3% in non-innovative branches (Lasch, 2003a). The high growth potential of ICT firms is linked to specific problems, such as a higher risk of failure, a difficult financing, the lack of knowledge in firm management of new entrepreneurs, etc. (Pleschak, 1997). Mostly SMEs, young ICT firms are extremely fragile, so the present chapter proposes to discuss the crucial topic of survival and growth in innovation and knowledge-based sectors.

Citation

Lasch, F., Le Roy, F. and Yami, S. (2005), "Survival and growth of start-ups in innovation- and knowledge-based branches: an empirical analysis of the French ICT sector", Vinig, G.T. and Van Der Voort, R.C.W. (Ed.) The Emergence of Entrepreneurial Economics (Research on Technological Innovation, Management and Policy, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 99-127. https://doi.org/10.1016/S0737-1071(05)09007-4