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Working Paper No. 151. The economic contribution of high-growth firms

PublicationWorking paper
Dan Johansson, Företagandets villkor, Gaseller, High-growth firms, High-impact firms, Niklas Elert, Sven-Olov Daunfeldt
Working Paper No. 151.
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Abstract

Prior studies have defined high-growth firms (HGFs) in terms of sales or employment, and analyzed their contribution to employment growth. We define HGFs by employment and sales and add definitions of value added and productivity. We examine the contribution of HGFs to employment growth, economic growth, productivity growth, and sales growth. All HGFs give a disproportionately large positive contribution to economic growth and most also give large positive contributions to growth in employment, productivity and sales. Although HGFs of different definitions are usually not the same firms, young firms are more likely to be HGFs irrespective of definition.

Related content: The Economic Contribution of High-Growth Firms

Daunfeldt, S-O., Elert, N. & Johansson, D. (2010). The economic contribution of high-growth firms: Do definitions matter? Ratio Working Paper No. 151.

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Working Paper No. 151. The economic contribution of high-growth firms
Working paperPublication
Daunfeldt, S-O., Elert, N. & Johansson, D.
Publication year

2010

Abstract

Prior studies have defined high-growth firms (HGFs) in terms of sales or employment, and analyzed their contribution to employment growth. We define HGFs by employment and sales and add definitions of value added and productivity. We examine the contribution of HGFs to employment growth, economic growth, productivity growth, and sales growth. All HGFs give a disproportionately large positive contribution to economic growth and most also give large positive contributions to growth in employment, productivity and sales. Although HGFs of different definitions are usually not the same firms, young firms are more likely to be HGFs irrespective of definition.

Related content: The Economic Contribution of High-Growth Firms

The Economic Contribution of High-Growth Firms
Artikel (med peer review)Publication
Daunfeldt, S-O., Elert, N. & Johansson, D.
Publication year

2014

Abstract

Prior studies have defined high-growth firms (HGFs) in terms of growth in firm employment or firm sales, and primarily analyzed their contribution to overall employment growth. In this paper we define HGFs using the commonly applied growth indicators (employment and sales), but also add definitions based on growth in value added and productivity. Our results indicate that HGFs in terms of employment are not the same firms as HGFs in terms of productivity, and that their economic contributions differ significantly. Economic policy promoting fast growth in employment may therefore come at the cost of reduced productivity growth. Although HGFs of different definitions may not be the same firms, young firms are more likely to be HGFs irrespective of definition. This suggests that economic policy should focus on the conditions for new firm formation and early growth of firms, rather than target a particular type of HGFs.

Related content: Working Paper No. 151

Working Paper No. 151. The economic contribution of high-growth firms
Working paperPublication
Daunfeldt, S-O., Elert, N. & Johansson, D.
Publication year

2010

Abstract

Prior studies have defined high-growth firms (HGFs) in terms of sales or employment, and analyzed their contribution to employment growth. We define HGFs by employment and sales and add definitions of value added and productivity. We examine the contribution of HGFs to employment growth, economic growth, productivity growth, and sales growth. All HGFs give a disproportionately large positive contribution to economic growth and most also give large positive contributions to growth in employment, productivity and sales. Although HGFs of different definitions are usually not the same firms, young firms are more likely to be HGFs irrespective of definition.

Related content: The Economic Contribution of High-Growth Firms

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