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Determinants of high-growth firms

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  • Gerrit de Wit
  • Mercedes Teruel

Abstract

High-growth firms have been shown to be a key factor for economic growth and structural change. This paper analyses the determinants of the number of highgrowth firms in a country for 17 OECD countries between 1999 and 2005, using the Amadeus data set, the GEM data set, and others. The first contribution of this paper is that it is - as far as we know - the first empirical analysis of highgrowth firms at the country level on the basis of actual measured growth. Second, we find indicative empirical evidence for three driving forces of high growth, viz. entrepreneurship, institutional settings, and opportunities for growth, all in accordance with theory and empirical findings in related fields of research. Third, the paper gives a tentative explanation of the differences in the average percentage of high-growth firms between countries. Finally, the paper gives some clues for policy makers how to promote high-growth firms.

Suggested Citation

  • Gerrit de Wit & Mercedes Teruel, 2011. "Determinants of high-growth firms," Scales Research Reports H201107, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h201107
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    References listed on IDEAS

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    Cited by:

    1. Suzanne Mawson, 2018. "Customer perceived value in high growth firms," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(75), pages 755-778, December.
    2. Sorin Gabriel Anton, 2019. "Leverage and firm growth: an empirical investigation of gazelles from emerging Europe," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 209-232, March.
    3. Peter Voigt & Pietro Moncada-Paternò-Castello, 2012. "Can Fast Growing R&D-Intensive Smes Affect the Economic Structure of the Eu Economy?: A Projection to the Year 2020," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 2(2), pages 96-128, December.
    4. Wim Naudé, 2011. "Foreign Aid for Innovation: The Missing Ingredient in Private Sector Development?," Working Papers 2011/35, Maastricht School of Management.
    5. Pietro Moncada-Paternò-Castello, 2022. "Top R&D investors, structural change and the R&D growth performance of young and old firms," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 1-33, March.
    6. Pietro Moncada-Paternò-Castello, 2016. "Sector dynamics and demographics of top R&D firms in the global economy," JRC Working Papers on Corporate R&D and Innovation 2016-06, Joint Research Centre.
    7. HERMANS, Julie & VANDERSTRAETEN, Johanna & DEJARDIN, Marcus & RAMDANI, Dendi & STAM, Erik & VAN WITTELOOSTUIJN, Arjen, 2012. "Ambitious entrepreneurship: Antecedents and consequences," Working Papers 2012023, University of Antwerp, Faculty of Business and Economics.
    8. Daunfeldt, Sven-Olov & Seerar Westerberg, Hans, 2017. "Are unemployed immigrants more likely to be hired by high-growth firms? Evidence from matched employer-employee data," HUI Working Papers 128, HUI Research.
    9. Sven-Olov Daunfeldt & Niklas Elert & Dan Johansson, 2014. "The Economic Contribution of High-Growth Firms: Do Policy Implications Depend on the Choice of Growth Indicator?," Journal of Industry, Competition and Trade, Springer, vol. 14(3), pages 337-365, September.
    10. Besnik A. Krasniqi & Sameeksha Desai, 2016. "Institutional drivers of high-growth firms: country-level evidence from 26 transition economies," Small Business Economics, Springer, vol. 47(4), pages 1075-1094, December.
    11. Pietro Moncada-Paternò-Castello & Peter Voigt, 2012. "Projection of R&D-intensive enterprise growth to the year 2020: Implications for EU policy?," JRC Working Papers on Corporate R&D and Innovation 2012-01, Joint Research Centre.
    12. André van Stel & Sander Wennekers & Jolanda Hessels & Chantal Hartog, 2011. "Global Entrepreneurship Monitor 2010 The Netherlands," Scales Research Reports A201108, EIM Business and Policy Research.
    13. Szerb, László & Varga, Attila & Komlósi, Éva, 2017. "Gyors növekedésű vállalatok Magyarországon. Az innovatív, a rejtélyes és a virtuális gazellák [Fast-growing businesses in Hungary: The innovative, mysterious and virtual gazelles]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 476-506.
    14. Daunfeldt, Sven-Olov & Westerberg, Hans, 2019. "High-growth firms and the labor market entry of first generation immigrants," HFI Working Papers 2, Institute of Retail Economics (Handelns Forskningsinstitut).
    15. Daria Ciriaci & Pietro Moncada-Paternò-Castello & Peter Voigt, 2016. "Innovation and job creation: a sustainable relation?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 189-213, August.
    16. Zoltan J. Ács & Wim Naudé, 2011. "Entrepreneurship, Stages of Development, and Industrialization," WIDER Working Paper Series wp-2011-080, World Institute for Development Economic Research (UNU-WIDER).
    17. Acs, Zoltan J. & Wim Naud�, 2011. "Entrepreneurship, Stages of Development, and Industrialization," WIDER Working Paper Series 080, World Institute for Development Economic Research (UNU-WIDER).
    18. Pietro Moncada-Paterno-Castello, 2011. "Companies' growth in the EU: What is research and innovation policy's role?," JRC Working Papers on Corporate R&D and Innovation 2011-03, Joint Research Centre.

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