Appendix A: Correlation Matrix

Table A1: Correlation Matrix – Young SMEs – Total

GROWi,t / GROWi,t-1 / AGEi,t-1 / SIZEi,t-1 / R&Di,t-1 / L.PRODi,t-1 / CFi,-t-1 / LEVi,t-1 / FDi,t-1×R&Di,t-1 / ITRi,t
GROWi,t / 1
GROWi,t-1 / 0.2941*** / 1
AGEi,t-1 / -0.2279*** / -0.1597*** / 1
SIZEi,t-1 / -0.2512*** / -0.1346*** / 0.1811*** / 1
R&Di,t-1 / 0.1149*** / 0.0517** / 0.2109*** / 0.1847*** / 1
L.PRODi,t-1 / 0.0102 / -0.0098 / 0.0397* / -0.009 / 0.0548** / 1
CFi,t-1 / 0.3972*** / 0.2866*** / 0.1449*** / 0.1433*** / 0.0148 / -0.0493** / 1
LEVi,t-1 / 0.2588*** / 0.1949*** / 0.1012*** / 0.1081*** / 0.0201 / -0.0104 / -0.1594*** / 1
FDi,t-1×R&Di,t-1 / -0.1195*** / -0.0851*** / -0.0445** / -0.0367* / 0.4509*** / -0.0071 / -0.1781*** / -0.0379* / 1
ITRi,t / -0.3244*** / -0.1712*** / -0.0128 / -0.0512** / -0.1066*** / 0.0113 / -0.0341* / 0.4819*** / 0.0401* / 1

Notes: 1. ***statistical significant at the 1% level. 2. ** statistical significant at the 5% level. 3. * statistical significant at 10% level.

Table A2: Correlation Matrix – Young SMEs – High-Tech

GROWi,t / GROWi,t-1 / AGEi,t-1 / SIZEi,t-1 / R&Di,t-1 / L.PRODi,t-1 / CFi,-t-1 / LEVi,t-1 / FDi,t-1×R&Di,t-1 / ITRi,t
GROWi,t / 1
GROWi,t-1 / 0.2345*** / 1
AGEi,t-1 / -0.1590*** / -0.1081*** / 1
SIZEi,t-1 / -0.2045*** / -0.0897*** / 0.2043*** / 1
R&Di,t-1 / 0.2478*** / 0.2808*** / 0.2553*** / 0.1549*** / 1
L.PRODi,t-1 / 0.2145*** / 0.1611*** / 0.0556** / -0.0179 / 0.1332*** / 1
CFi,t-1 / 0.4267*** / 0.2795*** / 0.2005*** / 0.0947*** / -0.0119 / -0.0789*** / 1
LEVi,t-1 / 0.3205*** / 0.2217*** / 0.1991*** / 0.1113*** / 0.0142 / -0.0061 / -0.1891*** / 1
FDi,t-1×R&Di,t-1 / -0.3345*** / -0.2617*** / -0.0111 / 0.0315* / 0.4901*** / -0.0781*** / -0.2379*** / 0.1023*** / 1
ITRi,t / -0.3818*** / -0.2719*** / 0.0091 / -0.2121*** / -0.1761*** / 0.0391* / 0.0124 / 0.5192*** / 0.0918*** / 1

Notes: 1. ***statistical significant at the 1% level. 2. ** statistical significant at the 5% level. 3. * statistical significant at 10% level.

Table A3: Correlation Matrix – Older SMEs – Total

GROWi,t / GROWi,t-1 / AGEi,t-1 / SIZEi,t-1 / R&Di,t-1 / L.PRODi,t-1 / CFi,-t-1 / LEVi,t-1 / FDi,t-1×R&Di,t-1 / ITRi,t
GROWi,t / 1
GROWi,t-1 / 0.0141 / 1
AGEi,t-1 / -0.0098 / -0.0051 / 1
SIZEi,t-1 / -0.0287* / -0.0148 / 0.0471** / 1
R&Di,t-1 / 0.2975*** / 0.2483*** / 0.1338*** / 0.2461*** / 1
L.PRODi,t-1 / 0.0542** / 0.0314* / 0.0876*** / 0.1789*** / 0.2812*** / 1
CFi,t-1 / 0.1012*** / 0.0502** / 0.1409*** / 0.0132 / 0.1008*** / -0.0201 / 1
LEVi,t-1 / 0.0978*** / 0.0849*** / 0.1144*** / 0.1605*** / 0.2372*** / 0.0816*** / -0.2022*** / 1
FDi,t-1×R&Di,t-1 / 0.0134 / -0.0098 / 0.0356* / -0.0071 / 0.3718*** / 0.0102 / -0.1678*** / 0.0822*** / 1
ITRi,t / 0.0128 / -0.0078 / -0.0144 / -0.0362* / -0.0537** / -0.0062 / -0.0151 / 0.4441*** / 0.0163 / 1

Notes: 1. ***statistical significant at the 1% level. 2. ** statistical significant at the 5% level. 3. * statistical significant at 10% level.

Table A4: Correlation Matrix – Older SMEs – High-Tech

GROWi,t / GROWi,t-1 / AGEi,t-1 / SIZEi,t-1 / R&Di,t-1 / L.PRODi,t-1 / CFi,-t-1 / LEVi,t-1 / FDi,t-1×R&Di,t-1 / ITRi,t
GROWi,t / 1
GROWi,t-1 / 0.0117 / 1
AGEi,t-1 / -0.0043 / -0.0068 / 1
SIZEi,t-1 / -0.0146 / -0.0109 / 0.0891*** / 1
R&Di,t-1 / 0.4012*** / 0.2718*** / 0.1912*** / 0.1114*** / 1
L.PRODi,t-1 / 0.2678*** / 0.1944*** / 0.1789*** / 0.1290*** / 0.2509*** / 1
CFi,t-1 / 0.3366*** / 0.2625*** / 0.2946*** / 0.0509** / 0.2023*** / -0.0391* / 1
LEVi,t-1 / 0.1946*** / 0.1789*** / 0.2612*** / 0.2744*** / -0.0118 / 0.2143*** / -0.2390*** / 1
FDi,t-1×R&Di,t-1 / -0.2223*** / -0.1098*** / -0.0071 / 0.0488** / 0.4466*** / -0.1005*** / -0.2114*** / 0.1354*** / 1
ITRi,t / -0.1241*** / -0.0477** / 0.0345* / -0.1255*** / -0.1981*** / 0.0789*** / 0.0384* / 0.4677*** / 0.0809*** / 1

Notes: 1. ***statistical significant at the 1% level. 2. ** statistical significant at the 5% level. 3. * statistical significant at 10% level.

Appendix B: Robustness of Results

Table B1: Alternative Criterion for Selecting SMEs Based on Age

Dependent Variable: GROWi,t
Young SMEs / Older SMEs
Total Young SMEs / High-tech Young SMEs / Total Older SMEs / High-Tech Older SMEs
Independent Variables / I / II / I / II / I / II / I / II
GROWi,t-1 / 0.1191***
(0.0300) / 0.1309***
(0.0341) / 0.0478**
(0.0231) / 0.0411**
(0.0204) / 0.0314
(0.0564) / 0.0241
(0.0590) / 0.0155
(0.0576) / 0.0141
(0.0533)
AGEi,t-1 / -0.0543***
(0.0145) / -0.0578***
(0.0141) / -0.0456***
(0.0110) / -0.0487***
(0.0144) / -0.0135
(0.0189) / -0.0180
(0.0244) / -0.0059
(0.0191) / -0.0067
(0.0202)
SIZEi,t-1 / -0.0643***
(0.0181) / -0.0675***
(0.0170) / -0.0445***
(0.0129) / -0.0479***
(0.0123) / -0.0129
(0.0256) / -0.0201
(0.0319) / -0.0102
(0.0186) / -0.0141
(0.0199)
R&Di,t-1 / 0.1144***
(0.0333) / 0.4616***
(0.0891) / 0.2891***
(0.0638) / 0.5676***
(0.1355)
L.PRODi,t-1 / 0.0068
(0.0159) / 0.0043
(0.0149) / 0.0547***
(0.0161) / 0.0579***
(0.0143) / 0.0259**
(0.0100) / 0.0307***
(0.0116) / 0.1251***
(0.0266) / 0.1208***
(0.0244)
CFi,t-1 / 0.6099***
(0.0745) / 0.5848***
(0.0807) / 0.8881***
(0.1906) / 0.8602***
(0.1861) / 0.1583***
(0.0301) / 0.2331***
(0.0701) / 0.5145***
(0.1299) / 0.5453***
(0.1390)
LEVi,t-1 / 0.1433***
(0.0351) / 0.2896***
(0.0577) / -0.0277
(0.0598) / 0.1454***
(0.0330)
FDi,t-1×R&Di,t-1 / -0.0577
(0.0424) / -0.2891***
(0.0472) / -0.0501
(0.0497) / -0.1671***
(0.0488)
ITRi,t-1 / -0.0411***
(0.0130) / -0.0645***
(0.0176) / 0.0108
(0.0215) / -0.0344***
(0.0140)
DHT / 0.1905***
(0.0375) / 0.1849***
(0.0322) / 0.0944***
(0.0286) / 0.1551***
(0.0305)
λi,t / -0.1091***
(0.0201) / -0.1227***
(0.0303) / -0.1466***
(0.0415) / -0.1378***
(0.0407) / -0.1544***
(0.0412) / -0.1609***
(0.0561) / -0.1178***
(0.0341) / -0.1098***
(0.0245)
CONS / 0.0081
(0.0361) / 0.0102
(0.0389) / -0.0144
(0.0502) / -0.0163
(0.0478) / 0.0111
(0.0182) / 0.0064
(0.0190) / 0.0034
(0.0177) / 0.0010
(0.0081)
F(N(0,1)) / 97.19*** / 95.01*** / 98.99*** / 98.76*** / 72.16*** / 66.56*** / 86.01*** / 85.14***
Wald Time dummies Test / 33.60*** / 29.44*** / 35.78*** / 32.12*** / 27.74*** / 28.17*** / 31.54*** / 33.90***
Hansen (N(0,1)) / 125.01[212] / 123.33[212] / 121.56[205] / 120.89[205] / 130.43[212] / 121.68[212] / 132.14[205] / 134.69[205]
m1 (N(0,1)) / -5.69*** / -4.60*** / -4.52*** / -4.49*** / -5.44*** / -5.36*** / -5.25*** / -5.84***
m2 (N(0,1)) / -0.15 / -0.21 / -0.40 / -0.18 / -0.38 / -0.46 / -0.27 / -0.21
Firms / 236 / 236 / 77 / 77 / 1411 / 1411 / 193 / 193
Obser. / 1185 / 1185 / 418 / 418 / 8466 / 8466 / 1186 / 1186

Notes: 1. Standard deviations in parenthesis. 2. *** statistical significance at the 1% level; 2. ** statistical significance at the 5% level. 3. Degrees of Freedom of the Hansen test are in [] parentheses.

4. The estimates include time dummy variables, but not shown.

Table B2: Alternative Criterion for Measuring Growth and Size

Dependent Variable: GROW*i,t
Young SMEs / Older SMEs
Total Young SMEs / High-tech Young SMEs / Total Older SMEs / High-Tech Older SMEs
Independent Variables / I / II / I / II / I / II / I / II
GROW*i,t-1 / 0.0971***
(0.0219) / 0.0916***
(0.0208) / 0.0599***
(0.0167) / 0.0623***
(0.0205) / 0.0314
(0.0564) / 0.0246
(0.0719) / 0.0191
(0.0555) / 0.0162
(0.0493)
AGEi,t-1 / -0.0544***
(0.0139) / -0.0501***
(0.0111) / -0.0390**
(0.0166) / -0.0437***
(0.0149) / -0.0135
(0.0189) / -0.0091
(0.0166) / -0.0034
(0.0189) / -0.0046
(0.0240)
SIZE*i,t-1 / -0.0531***
(0.0122) / -0.0510***
(0.0129) / -0.0432***
(0.0135) / -0.0445***
(0.0143) / -0.0129
(0.0256) / -0.0210
(0.0331) / -0.0127
(0.0224) / -0.0119
(0.0190)
R&Di,t-1 / 0.0988**
(0.0434) / 0.4008***
(0.0891) / 0.2891***
(0.0638) / 0.6299***
(0.1145)
L.PRODi,t-1 / 0.0155
(0.0288) / 0.0103
(0.0204) / 0.0577***
(0.0124) / 0.0594***
(0.0156) / 0.0259**
(0.0102) / 0.0320***
(0.0114) / 0.1209***
(0.0288) / 0.1155***
(0.0244)
CFi,t-1 / 0.5112***
(0.0761) / 0.5478***
(0.0817) / 0.8899***
(0.1605) / 0.8565***
(0.1877) / 0.1583***
(0.0301) / 0.1866***
(0.0471) / 0.5005***
(0.1244) / 0.4677***
(0.1561)
LEVi,t-1 / 0.1341***
(0.0315) / 0.2901***
(0.0511) / -0.0277
(0.0598) / 0.1566***
(0.0448)
FDi,t-1×R&Di,t-1 / -0.0718
(0.0987) / -0.2818***
(0.0460) / -0.0489
(0.0590) / -0.1398***
(0.0407)
ITRi,t-1 / -0.0409***
(0.00145) / -0.0556***
(0.0112) / 0.0145
(0.0277) / -0.0366***
(0.0118)
DHT / 0.1588***
(0.0371) / 0.1409***
(0.0366) / 0.0799***
(0.0204) / 0.0808***
(0.0270)
λi,t / -0.0911***
(0.0189) / -0.1177***
(0.0249) / -0.1566***
(0.0453) / -0.1280***
(0.0315) / -0.1544***
(0.0412) / -0.1567***
(0.0486) / -0.1366***
(0.0328) / -0.1299***
(0.0348)
CONS / 0.0134
(0.0456) / 0.0056
(0.0389) / -0.0119
(0.0444) / -0.0190
(0.0460) / 0.0111
(0.0182) / 0.0144
(0.0209) / 0.0088
(0.0291) / 0.0025
(0.0128)
F(N(0,1)) / 97.40*** / 90.88*** / 97.10*** / 97.16*** / 72.16*** / 70.11*** / 87.77*** / 85.56***
Wald Time dummies Test / 32.88*** / 31.45*** / 34.48*** / 30.91*** / 27.74*** / 28.32*** / 32.56*** / 31.17***
Hansen (N(0,1)) / 125.01[212] / 126.09[212] / 120.11[205] / 121.34[205] / 130.43[212] / 129.11[212] / 139.10[205] / 134.95[205]
m1 (N(0,1)) / -5.88*** / -5.91*** / -5.44*** / -5.90*** / -5.44*** / -5.07*** / -4.44*** / -5.67***
m2 (N(0,1)) / -0.18 / -0.26 / -0.10 / -0.16 / -0.38 / -0.52 / -0.41 / -0.19
Firms / 459 / 459 / 88 / 88 / 1188 / 1188 / 182 / 182
Obser. / 2523 / 2523 / 485 / 485 / 7128 / 7128 / 1119 / 1119

Table B3: Estimations Using LSDVC (2005) Estimator

Dependent Variable: GROWi,t
Young SMEs / Older SMEs
Total Young SMEs / High-tech Young SMEs / Total Older SMEs / High-Tech Older SMEs
Independent Variables / I / II / I / II / I / II / I / II
GROWi,t-1 / 0.1371***
(0.0210) / 0.1345***
(0.0298) / 0.0614***
(0.0203) / 0.0597***
(0.0206) / 0.0191
(0.0561) / 0.0232
(0.0661) / 0.0090
(0.0352) / 0.0066
(0.0373)
AGEi,t-1 / -0.0564***
(0.0135) / -0.0487***
(0.0096) / -0.0401***
(0.0112) / -0.0372***
(0.0120) / -0.0155
(0.0188) / -0.0137
(0.0249) / -0.0026
(0.0108) / -0.0074
(0.0209)
SIZEi,t-1 / -0.0500***
(0.0098) / -0.0565***
(0.0176) / -0.0422***
(0.0107) / -0.0467***
(0.0139) / -0.0155
(0.0249) / -0.0201
(0.0354) / -0.0176
(0.0244) / -0.0051
(0.0106)
R&Di,t-1 / 0.1177**
(0.0550) / 0.3566***
(0.0666) / 0.3667***
(0.0800) / 0.6446***
(0.1368)
L.PRODi,t-1 / 0.0122
(0.0288) / 0.0065
(0.0222) / 0.0529***
(0.0115) / 0.0590***
(0.0165) / 0.0265**
(0.0077) / 0.0302***
(0.0112) / 0.1206***
(0.0288) / 0.1169***
(0.0276)
CFi,t-1 / 0.5004***
(0.0453) / 0.5677***
(0.0762) / 0.8776***
(0.1608) / 0.8043***
(0.1559) / 0.2019***
(0.0644) / 0.2233***
(0.0688) / 0.4433***
(0.1094) / 0.5323***
(0.1270)
LEVi,t-1 / 0.1455***
(0.0362) / 0.2855***
(0.0580) / -0.0261
(0.0489) / 0.1255***
(0.0287)
FDi,t-1×R&Di,t-1 / -0.0546
(0.0490) / -0.3009***
(0.0546) / -0.0461
(0.0598) / -0.1349***
(0.0391)
ITRi,t-1 / -0.0362***
(0.0013) / -0.0538***
(0.0112) / 0.0144
(0.0256) / -0.0288***
(0.0116)
λi,t / -0.1017***
(0.0256) / -0.0987***
(0.0197) / -0.1309***
(0.0449) / -0.1297***
(0.0313) / -0.1352***
(0.0409) / -0.1506***
(0.0513) / -0.1344***
(0.0384) / -0.1192***
(0.0243)
Wald Time dummies Test / 27.12*** / 29.00*** / 30.02*** / 31.95*** / 30.08*** / 28.28*** / 27.56*** / 28.81***
Firms / 459 / 459 / 88 / 88 / 1188 / 1188 / 182 / 182
Obser. / 2523 / 2523 / 485 / 485 / 7128 / 7128 / 1119 / 1119

Notes: 1. Standard deviations in parenthesis. 2. ***statistical significance at the 1% level; 2. ** statistical significance at the 5% level. 3. The sectoral dummy is dropped in young and older total SMEs. 4. The estimates include time dummy variables, but not show.