Duration models: determinants of research-based spin-offs survival

Abstract

Existing literature has shown that research-based spin-off firms usually exhibit lower death risks than other start-ups. However, few studies have focused on the survival determinants of these particular firms. From a matched employer-employee data set this paper fills in this gap by providing evidence using a sample of RBSOs created in Portugal from 1979 until 2007 and observed until 2012. Specifically, we use duration analysis – both accelerated failure time models and proportional hazard models - to investigate if firm characteristics and location characteristics play a role on these firms’ survival. Results from the Weibull model show a positive impact of variables such as firm size and age on these firms’ survival probability as well as the location of spin-offs in municipalities with high entry rates and low exit rates.