Firm #’s in your sector shrinking? Why? R&D density. Start innovating!
What is R&D density and why is it important to your survival? The inverse of average firm sales or simply the number of firms divided by industry sales determines sectors with high R&D intensity are sectors with future forward competitive environments requiring intense focus and investment to enter.
And how do to you break in ? Here’s how via a simple theory and evidence on the determinants of firm R&D