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EmployeesAssociate Researcher

Sven-Olov Daunfeldt

Contact information

Phone
070-295 72 84
Email
sven-olov.daunfeldt@huiresearch.se

My research is primarily focused on analyzing firms’ growth processes, the institutional conditions for firm growth, and the importance of high-growth firms. Many of my recent projects have been focused on investigating the effects of different policy reforms. I have, for example, investigated if a liberalization of the Swedish employment protection legislation act affected the labor market position of immigrants, if a reduction of the pay-roll tax for young employees increased employment among the treated firms, and if targeted R&D grants towards SMEs improve firm performance. I have written more than 110 papers in total, of which about 50 are published in peer-reviewed scientific journals such as the Journal of Population Economics, Regional Studies, Industrial and Corporate Change, and Small Business Economics.

Related publications

    Article (with peer review)

    Amundsen versus Scott: are growth paths related to firm performance?

    Coad, A., Daunfeldt, SO. & Halvarsson, D.

    Publication year

    2022

    Published in

    Small Business Economics 59, 593–610 (2022).

    Abstract

    In the race to the South Pole, Roald Amundsen’s expedition covered an equal distance each day, irrespective of weather conditions, while Scott’s pace was erratic. Amundsen won the race and returned without loss of life, while Scott and his men died. In the context of firm growth, the Amundsen hypothesis suggests that smoother growth paths are associated with better performance in subsequent periods. We develop a new method to investigate how firms’ sales growth deviates from their long-run average growth path. Our baseline results suggest that growth path volatility is associated with higher growth of sales and profits, but also with higher exit rates. However, this result is driven by firms with negative growth rates. For positive-growth firms, volatility is negatively associated with both sales growth and survival, providing nuanced support for the Amundsen hypothesis.

    The article can be accessed here.

    Book chapter

    Do Targeted R&D Grants toward SMEs Increase Employment and Demand for High Human Capital Workers?

    Daunfeldt, S. O., Halvarsson, D., Tingvall, P. G., & McKelvie, A.

    Publication year

    2022

    Published in

    Springer.

    Abstract

    Most previous studies on the employment effects of government R&D grants targeting SMEs are characterized by data-, measurement-, and selection problems, making it difficult to construct a relevant control group of firms that did not receive an R&D grant. We investigate the effects on employment and firm-level demand for high human capital workers of two Swedish programs targeted toward growth-oriented SMEs using Coarsened Exact Matching. Our most striking result is the absence of any statistically significant effects. We find no robust evidence that the targeted R&D grant programs had any positive and statistically significant effects on the number of employees recruited into these SMEs, or that the grants are associated with an increase in the demand for high human capital workers. The lack of statistically significant findings is troublesome considering that government support programs require a positive impact to cover the administrative costs associated with these programs.

    The book can be downloaded here for free.

    Article (with peer review)

    Bursting into life: firm growth and growth persistence by age

    Coad, A., Daunfeldt, S-O., & Halvarsson, D.

    Publication year

    2018

    Published in

    Small Business Economics

    Abstract

    Is firm growth more persistent for young or old firms? Theory gives us no clear guidance, and previous empirical investigations have been hampered by a lack of detailed data on firm age, as well as a non-representative coverage of young firms. We overcome these shortcomings using a rich dataset on all limited liability firms in Sweden during 1998–2008, covering firms of all ages and information on registered start year. Sales growth for new ventures is characterized by positive persistence, which quickly turns negative as firms get older. Young firms are more likely to have two consecutive periods of positive growth. While new firms experience an early burst of sustained growth, older firms have more erratic growth paths.
    Related content: Working Paper No. 264

    Article (with peer review)

    High-Growth Firms: Not So Vital After All?

    Daunfeldt, S-O., Halvarsson, D., & Mihaescu, O.

    Publication year

    2016

    Published in

    International Review of Entrepreneurship

    Abstract

    High-growth firms have received considerable interest recently since they create most of the new jobs in the economy. The purpose of our paper is to investigate the characteristics of high-growth firms prior to their growth period, and whether these characteristics differ across industries. Using data on a large sample of limited liability firms in Sweden for the period 2007-2010, we find that high-growth firms do not have the characteristics that we typically associate with successful firms. On the contrary, our results indicate that high-growth firms initially have low profits and a weak financial position. This might explain why studies have found that so few high-growth firms are capable of sustaining their high growth rates in subsequent periods, and thus question policies that are targeted towards these companies.
    Related content: Working paper No. 263

    Article (without peer review)

    Statliga innovationsstöd till små och medelstora företag – har de någon effekt?

    Daunfeldt, S-O., Gustavsson Tingvall, P., & Halvarsson, D.

    Publication year

    2016

    Published in

    Ekonomisk debatt

    Abstract

    Syftet med denna rapport har varit att presentera resultat från en kontrafaktisk effektutvärdering av Vinnovas stödprogram Vinn Nu och Forska & Väx. Vi finner inga statistiskt säkerställda effekter av stödprogrammen på antalet anställda, arbetskraftsproduktiviteten, andelen högutbildade arbetare eller andelen forskare i de stödmottagande företagen. Den enda positiva effekt som kan observeras är att stöden lett till en ökad omsättning för stödföretagen jämfört med liknande företag som inte tilldelades stöd. Denna effekt är dock begränsad till företag med mindre än sex anställda och observeras endast under det första året efter det att stöden upphört.

    Working paper

    Ratio Working Paper No. 264: Bursting into life: Firm growth and growth persistence by age

    Coad, A, Daunfeldt, S-O, Halvarsson, d
    Download

    Publication year

    2015

    Published in

    -

    Abstract

    Is firm growth more persistent for young or old firms? Theory gives us no clear answer, and previous empirical investigations have been hampered by a lack of detailed data on firm age, as well as a non-representative coverage of young firms. We overcome these shortcomings using a rich dataset on all limited liability firms
    in Sweden during 1997-2010, covering firms of all ages and information on registered start year. We find that sales growth for new ventures is characterized by positive persistence, whereas it quickly turns negative and remains negative as firms get older. It thus seems that the growth paths of older firms are buffeted around by environmental turbulence, and that older firms may have challenges in adapting their strategies to changing market conditions, whereas new firms experience an early burst of sustained growth.

    Working paper

    Ratio Working Paper No. 263: High-growth firms: Not so vital after all?

    Daunfeldt, S-O, Halvarsson, D, Mihaescu, O
    Download

    Publication year

    2015

    Published in

    High-Growth Firms: Not So Vital After All?

    Abstract

    High-growth firms have received considerable interest recently since they create most of the new jobs in the economy. The purpose of our paper is to investigate the characteristics of high-growth firms prior to their
    growth period, and whether these characteristics differ across industries. Using data on a large sample of limited liability firms in Sweden for the period 2007-2010, we find that high-growth firms do not have the characteristics that we typically associate with successful firms. On the contrary, our results indicate that high-growth firms have low profits and a weak financial position. This might explain why studies have found that high-growth firms are seldom capable of sustaining their high growth rates in subsequent periods, and thus question policies that are targeted towards these companies.
    Related content: High-Growth Firms: Not So Vital After All?

    Reports

    Företagsstöd till innovativa små och medelstora företag

    Halvarsson, D., Daunfeldt, S-V. & Gustavsson Tingvall, P.
    Download

    Publication year

    2014

    Published in

    Tillväxtanalys

    Abstract

    Tillväxtanalys har utvärderat Vinnovas “Vinn Nu och Forska och Väx”-program mellan 2006 och 2010. Företagens utveckling har följts, under och upp till 5 år efter stöd, och där indikerar analyserna få statistiskt säkerställda positiva effekter av stöden.

    Syftet med föreliggande rapport är dels fortsätta diskussionen kring de metodproblem som finns vid analyser och utvärderingar av selektiva företagsstöd, dels med hjälp av databasen och nya ekonometriska metoder genomföra en kontrafaktisk utvärdering av två program (VINN NU och Forska & Väx) och som utvecklats av Vinnova för att stimulera innovationsdriven tillväxt i små och medelstora
    företag. Ett mål med studien är att förbättra kunskaperna kring den komplexa dynamik som kännetecknar innovation och entreprenörskap samt stimulera till diskussion om och under vilka förutsättningar olika typer av selektiva företagsstöd kan leda till innovationer och tillväxt.

    I rapporten genomförs en statistisk analys av företagsstödens effekter på antal anställda, produktivitet, omsättning samt andelen arbetstagare med högre utbildning. Resultaten visar på mycket begränsade statistiskt säkerställda positiva effekter på dessa målvariabler under den tidsperiod (2006–2010) som analyserats. I rapporten och diskussioner med Vinnova har olika tänkbara orsaker diskuterats. Är den studerade tidsperioden för kort för att spåra påtagliga tillväxteffekter? Är storleken på stöden för små eller saknas kritisk massa för att uppnå statens intentioner att främja innovation och tillväxt? Vilka metodologiska begränsningar finns i en kontrafaktisk analys av de komplexa processer i företag som leder till teknisk utveckling och introduktion av nya produkter och tjänster på marknaden? Vilken roll kan selektiva instrument spela i närings- och innovationspolitiken?

    Article (with peer review)

    Congestion Charges in Stockholm: How Have They Affected Retail Revenues?

    Daunfeldt, S-O., Rudholm, N., & Rämme, U.

    Publication year

    2013

    Published in

    Transportmetrica A: Transport Science 9

    Abstract

    Did the introduction of congestion charges in Stockholm city reduce retail revenues? Data from 20 shopping malls – 8 within the toll area, and 12 outside the toll area – and from a sample of retail stores located along the main shopping streets was analysed using an intervention-control approach. Favourable outcomes, such as reduced traffic, less emissions of carbon-dioxide and perceived improvements in air quality and accessibility, do not seem to have been offset by reduced revenues for retailers located within the toll area.
    Related content: Working Paper No. 134

    Article (with peer review)

    When is Gibrat’s Law a Law?

    Daunfeldt, S-O., & Elert, N.

    Publication year

    2013

    Published in

    Small Business Economics 41

    Abstract

    The purpose of this article is to investigate if the industry context matters for whether Gibrat’s law is rejected or not using a dataset that consists of all limited firms in five-digit NACE-industries in Sweden during 1998–2004. The results reject Gibrat’s law on an aggregate level, since small firms grow faster than large firms. However, Gibrat’s law is confirmed about as often as it is rejected when industry-specific regressions are estimated. It is also found that the industry context—e.g., minimum efficient scale, market concentration rate, and number of young firms in the industry—matters for whether Gibrat’s law is rejected or not.

    Related content: Working paper No. 158

    Article (with peer review)

    Start-ups and firm in-migration

    Daunfeldt, S-O., Elert, N., & Rudholm, N.

    Publication year

    2013

    Published in

    Länk till artikel

    Abstract

    We use a data set covering 13,471 Swedish limited liability firms in the Swedish wholesale industries during 2000–2004 to ascertain the determinants of new start-ups and of in-migration of firms. Access to a large harbor, international airport or large railroad classification yard in the municipality nearly triples the number of start-ups and increases the expected number of in-migrating firms with 53 %. The presence of a university, many educated workers and low local taxes are also associated with more start-ups and firm in-migration.

    Related content: Working Paper No. 171

    Reports

    Snabbväxarnas dynamik – Är hög företagstillväxt uthållig?

    Daunfeldt, S-O. & Halvarsson, D.
    Download

    Publication year

    2011

    Published in

    Tillväxtanalys

    Abstract

    Daunfeldt, S-O. & Halvarsson, D. (2011). Snabbväxarnas dynamik – Är hög företagstillväxt uthållig? Rapport 2011:15. Tillväxtanalys.

    Reports

    Märkningar och konsumentbeteende – Kommer efterfrågan med Svanen?

    Rudholm, N., Daunfeldt, S-O., Heldt, T., Thunström, L. & Weiberth, C.
    Download

    Publication year

    2011

    Published in

    -

    Abstract

    I forskningsprojektet ”Kommer efterfrågan med Svanen?” har HUI Research studerat om och hur märkningar av ekologiska produkter påverkar efterfrågan på de märkta produkt­erna, konsumenters värdering av hälsorelaterade livsmedelsmärkningar samt om konsumenterna i livsmedelsbutiken är nöjda med sina val.

    Rapporten består alltså av tre delstudier, där den första studerar hur hyllmärkningar av ekologiska produkter påverkar efterfrågan på de märkta produkterna. Studien baseras på försäljningsdata från en ICA­Maxi butik belägen i Hemlingby köpcentrum i Gävle. Butiken har under den studerade tidsperioden introducerat hyllskyltningar för alla ekolo­giska produkter i butiken. Introduktionen av hyllskyltningen för de ekologiska varorna var exogent given för konsumenten eftersom den inte var känd för konsumenterna före dess införande, vilket gör att vi kan behandla detta som ett naturligt fältexperiment.

    Book chapter

    Habit Persistence in Food Consumption

    Daunfeldt, S-O., Nordström, J. & Thunström, L.

    Publication year

    2011

    Published in

    The Oxford Handbook of the Economics of Food Consumption and Policy

    Abstract

    Working paper

    Working paper No. 158. When is Gibrat’s Law a Law?

    Daunfeldt, S-O., & Elert, N.
    Download

    Publication year

    2010

    Published in

    When is Gibrat’s Law a Law?

    Abstract

    The purpose of this paper is to investigate if the industry context matters for whether Gibrat’s law is rejected or not using a dataset that consists of all limited firms in 5-digit NACE-industries in Sweden during 1998-2004. The results reject Gibrat’s law on an aggregate level, since small firms grow faster than large firms. However, Gibrat’s law is confirmed about as often as it is rejected when industry-specific regressions are estimated. It is also found that the industry context – e.g., minimum effcient scale, market concentration rate, and number of young firms in the industry – matters for whether Gibrat’s law is rejected or not.

    Related content: When is Gibrat’s Law a Law?

    Reports

    Hyll­skyltningar av ekologiska varor: Resultat från ett naturligt experiment

    Daunfeldt, S-­O. & Rudholm, N.

    Publication year

    2010

    Published in

    -

    Abstract

    Article (without peer review)

    Leder högre skatter på kapitalvinster till inlåsningseffekter?

    Daunfeldt, S-­O. & Rudholm, N.

    Publication year

    2010

    Published in

    Ekonomisk Debatt

    Abstract

    Höga skatter på kapitalvinster kan leda till att investerare blir mindre benägna att realisera sina kapitalvinster. Tidigare studier har använt sig av data från USA och finner att det existerar en inlåsningseffekt, men storleken på effekten varierar mellan studierna. I en ny studie drar Daunfeldt m fl (2010) slutsatsen att högre skatter på kapitalvinster också är förknippade med en inlåsningseffekt i Sverige. Resultaten från studien indikerar att en höjning av kapitalvinstskatten med 10 procent i genomsnitt leder till att antalet realiseringar minskar med nästan 9 procent. Inlåsningseffekten tenderar dessutom att vara större för investerare med beskattningsbar förmögenhet, vilket indikerar att dessa individer i högre utsträckning använder sig av skatteplanering för att undkomma beskattningen av kapitalvinster.

    Article (with peer review)

    Taxation, Dividend Payments and Ex-Day Price Changes

    Daunfeldt, S-O., Selander, C. & Wikström, M.

    Publication year

    2009

    Published in

    Multinational Finance Journal

    Abstract

    The purpose of the paper is to study the effects of taxation on dividend payments and ex-dividend price changes in Sweden during 1991-1995. Under this period, dividends and capital gains were taxed at a áat rate. Tax changes in Sweden during the 1990s thus provide an opportunity to include direct measures of the tax treatment of dividends and capital gains in the empirical analysis, in contrast to previous studies. The results indicate that tax reforms have large effects on dividend payments, while the effects on ex-dividend price changes are less conclusive.

    Article (with peer review)

    Revenues as Proxy for Profits

    Daunfeldt, S-O., & Rudholm, N.

    Publication year

    2009

    Published in

    Applied Economic Letters

    Abstract

    In the entry literature, researchers sometimes use revenues as a proxy for profits because this is the only data available. Doing so could seriously bias the results.

    Article (with peer review)

    Congestion charges and retail revenues: Results from the Stockholm road pricing trial

    Daunfeldt, S-O., Rudholm, N., & Rämme, U.

    Publication year

    2009

    Published in

    Transportation Research Part A: Policy and Practice

    Abstract

    This paper studies the impact of the Stockholm road pricing trial on retail revenues. The analysis is performed using revenue data from 14 shopping malls, 9 within the tool area and 5 outside the tool area. The data also include revenue data from a sample of retail stores located along the main shopping streets in Stockholm. The results show that the Stockholm road pricing trial did not negatively affect retail revenue, neither in shopping malls nor in the sample of retail stores.