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High-Growth Firms: Not So Vital After All?

PublikationArtikel (med peer review)
Daniel Halvarsson, Entreprenörskap, Företagandets villkor, Gaseller, High-growth firms, Innovation, Oana Mihaescu, Sven-Olov Daunfeldt

Sammanfattning

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

Daunfeldt, S-O., Halvarsson, D., & Mihaescu, O. (2016). High-Growth Firms: Not So Vital After All?International Review of Entrepreneurship, 14(4), paper no. 1541.


Liknande innehåll

Third-Generation Innovation Policy: System Transformation or Reinforcing Business as Usual?
BokkapitelPublikation
Bergkvist, J. E., Moodysson, J., & Sandström, C.
Publiceringsår

2022

Publicerat i

Questioning the Entrepreneurial State, 201.

Sammanfattning

There has been a shift in innovation policy in recent years toward more focus on systemic transformation and changed directionality. In this chapter, we describe a collection of challenges that such policies need to address. Based on a review of dominant frameworks regarding socio-technical transitions, we compare these theories with examples of innovation policy in different countries. Systemic transformation across an economy usually requires a process of creative destruction in which new competencies may be required, actors need to be connected in novel ways, and institutions may need to be changed. Our empirical illustrations show that support programs and initiatives across Europe do not always seem to result in such a process, as they include mechanisms favoring large, established firms and universities. These actors have often fine-tuned their activities and capabilities to the existing order, and therefore have few incentives to engage in renewal. As the incumbent actors also control superior financial and relational resources, there is a risk that they captivate innovation policies and thus reinforce established structures rather than contributing to systemic transformation.

Less from more: China built wind power, but gained little electricity.
BokkapitelPublikation
Grafström, J.
Publiceringsår

2022

Publicerat i

Questioning the Entrepreneurial State, 219.

Sammanfattning

This chapter investigates Chinese wind power development and concludes that innovation cannot be pushed by the efforts of many, and that when the state clarifies directions and objectives, these can be achieved but with severe and unexpected side effects. Two topics are explored: wind curtailment and low technological development, both examples of unproductive entrepreneurship induced by government policies. The goal of wind power capacity expansion leads to construction (i.e., generation capacity) but little electricity. Examples of failures include low grid connectivity with, some years averaging 15% of generation capacity broken or unconnected to the grid. A key lesson for Europe is that forced innovation often amounts to little and that the old saying holds up: “no plan survives contact with reality.”

The book can be downloaded here.

Ratio Working Paper No. 354: Foreign Ownership and Transferring of Gender Norms
Working paperPublikation
Halvarsson, D., Lark, O. & Gustavsson Tingvall, P.
Publiceringsår

2022

Publicerat i

Ratio Working Paper

Sammanfattning

In this paper, we study foreign ownership as a vehicle for transferring gender norms across international borders. Specifically, we analyze how the wage differential between men and women in Swedish firms is affected by the degree of gender inequality in the home country of foreign investors. The results suggest that gender norms of the home country matter—the gender wage gap in foreign-owned subsidiaries appears to increase with the degree of gender inequality prevailing in the investors’ home market. This finding is identified from within job-spell variation in wages and proves robust across a series of specifications.

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