This paper documents the relationship between capital intensity, the use of advanced manufacturing technology, growth rates, and exit probabilities for a sample of U.S. manufacturing plants. It utilizes data from a unique establishment survey of technology usage that allows us to control for both the quantity and heterogeneity of capital in the plant. The main findings are that capital-intensive plants and plants employing advanced technology have higher growth rates and are less likely to fail. The effects are present after controlling for plant productivity and age; however, the technology results are sensitive to the inclusion of size variables.
All Science Journal Classification (ASJC) codes
- Aerospace Engineering
- Industrial relations
- Industrial and Manufacturing Engineering
- Strategy and Management