INNOVATION, AND DEATH RATE OF ENTERPRISE
Abstract
Although innovation is believed to be the right strategy to win the competition in an increasingly competitive business environment, not all companies are willing and daring to do so. Behind the opportunity to get profit from the sale of new products, innovation activities are also at risk of failure in doing commercialization of new products. The worst result that can be experienced by a company due to failure is death. This study aims to analyze how the influence of innovation activities measured through R&D expenditures and the number of resident patent applications on the death rate of companies in member countries of OECD. The results showed that the 16 countries sampled in the study are not proven that innovation activities can increase the mortality rate of companies in these countries. In fact, innovation activities were found to reduce the mortality rate of companies in the research countries samples.References
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