The Australian Government is now operating in line with Caretaker Conventions, pending the outcome of the 2025 federal election.
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