PREDICTING PERFORMANCE IN NEW HIGH-TECHNOLOGY FIRMS.

The status of 250 high-technology firms was determined in 1973, at which time the median company studied would have been seven years old. At that time 26% had been discontinued, a much better survival rate than has been found for non-technically oriented firms. A relatively large number (22.8%) had been acquired or merged. Questionnaire responses from a sample of these firms indicated relatively high growth and moderate profitability. Twenty-seven companies achieved annual sales in excess of $5 million. As compared to the total population studied, these high growth companies were started more often by groups, were spin-offs from large organizations, and were more often similar to the parent firms.