Table 8.

Small Firms’ Market Entry Strategies

	(1)	(2)	(3)
	% Small Firms Among Pioneer Entrants	% Small Firms Among Follow-On Entrants	P[(1) = (2)]†
Drug Firms (N=107)
Definition 1	54.5%	46.9%	0.6513
Definition 2	45.4%	35.4%	0.5541
Definition 3	36.4%	11.5%	0.1379
Device Firms (N=275)
Definition 1	17.2%	21.7%	0.4430
Definition 2	10.3%	19.4%	0.0657
Definition 3	6.9%	14.3%	0.0751

^†P-values are from a 2-sided t-test with unequal variances.

A small firm is one that is not a) publicly listed, b) does not have revenues of more than $500 million per year, and c) is not a subsidiary of a firm of type a or b. Results not sensitive to using revenues of more than $1 billion as a cutoff.

Definition 1: only those firms that were defined as “small” at least one year before an application was submitted; Definition 2: excludes those firms that were or became subsidiaries of established firms within five years of a given PMA submission; Definition 3: firms that never met criteria a, b, or c above.