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Using the eurostat-OECD definition of high-growth firms: a cautionary note

Author

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  • Sven-Olov Daunfeldt
  • Dan Johansson
  • Daniel Halvarsson

Abstract

Purpose - – High-growth firms (HGFs) have attracted an increasing amount of attention from researchers and policymakers, and the Eurostat-Organisation for Economic Co-operation and Development (OECD) definition of HGFs has become increasingly popular. The paper aims to discuss this issue. Design/methodology/approach - – The authors use a longitudinal firm-level data set to analyze the implications of using the Eurostat-OECD definition. Findings - – The results indicate that this definition excluded almost 95 percent of surviving firms in Sweden, and about 40 percent of new private jobs during 2005-2008. Research limitations/implications - – The proportion of small firms and their growth patterns differ across countries, and the authors therefore advise caution in using this definition in future studies. Practical implications - – Policy based on the Eurostat-OECD definition of HGFs might be misleading or even counterproductive. Originality/value - – No previous studies have analyzed the implications of using the Eurostat-OECD definition of HGFs.

Suggested Citation

  • Sven-Olov Daunfeldt & Dan Johansson & Daniel Halvarsson, 2015. "Using the eurostat-OECD definition of high-growth firms: a cautionary note," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 4(1), pages 50-56, April.
    • Handle: RePEc:eme:jepppp:v:4:y:2015:i:1:p:50-56
    DOI: 10.1108/JEPP-05-2013-0020
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