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Do manufacturing entrepreneurs in Australia have (or develop) a productivity advantage?

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Staff Research Paper 7/2019
Publication Date: 
July 2019

This research paper investigates whether young manufacturing businesses have, or develop, productivity advantage compared to more mature firms.

Key findings include:

  • young manufacturing firms in Australia are quite unproductive upon entry
  • a small number of businesses grow very fast and have a productivity advantage—these are dubbed 'transformative'
  • co-locating with suppliers and clients does not seem to provide firms with much incentive to improve their productivity
  • businesses that co-locate with firms in the same industry or start within high-patenting areas have much faster productivity growth than other firms

The study used data from the Business Longitudinal Analysis Data Environment (BLADE) and the Australian Bureau of Statistics (ABS).

Author: Sasan Bakhtiari

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