Search

Previous work has found that a small number of export superstars contribute disproportionally to the economy's overall exports. Differently from export superstars, this study is the first to define high growth exporters (HGXs) (that are not export superstars) as a new firm category. We provide their economic importance and depict their micro-level anatomy. By tracking HGXs in Croatia for over a quarter of a century, 44 out of 100 export superstars in 2019 were previously HGXs. HGXs represent only 0.5% of all firms and 18% of high growth firms (HGFs) in the economy, but are responsible for about 25% of new exports and 5% of new jobs. During their growth episode, HGXs hire more employees from technology intensive industries with previous experience in exporting. They often hire on a single year work contract, and more frequently send new employees to work abroad. HGX also increase their presence in more advanced markets, increase the number of new export products and decrease their reliance on the largest product or largest export market. We argue HGXs represent an under-researched category of firms. [ABSTRACT FROM AUTHOR]

Copyright of Deutsches Institut für Wirtschaftsforschung: DIW-Wochenbericht is the property of DIW Berlin and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Knowledge created outside the firm, but within the same region, is a key enabler of high-growth firms. This paper develops an entrepreneurial ecosystems conceptual framework focussing on knowledge spillovers and regional absorptive capacity, to account for interregional differences in high-growth firm rates. This is tested using panel data from 378 regions in Great Britain. Knowledge creation (SME-engaging and research-intensive universities, innovative firms) and knowledge spillovers (primarily through vertically related industries) reveal to be of key importance. Other key regional enablers of high growth firms pertain to entrepreneurship culture, talent, intermediate services, networks, finance and demand growth. [ABSTRACT FROM AUTHOR]

Scholars and practitioners have investigated high growth firms because a small number of high growth firms contribute disproportionately to economic development. However, we find that the standard perception and support programs of high growth firms are heavily geared toward to firms in the high-tech sector that seek venture capital investment and hyper growth. The authors in this paper conducted multiple research projects of high growth firms in Kansas City, St Louis, Indianapolis, Columbus, and Montana, and came to conclude that many high growth firms are sector agonistic, locally rooted, grow organically based on market niche, and exist in every city. This alternative model of high growth firms leads to a completely different set of policy and support implications, which we synthesize in eight points. [ABSTRACT FROM AUTHOR]

High growth firms receive a lot attention from policy and academia. In this paper we investigate the general validity of an investor startup database in studying high growth firms and growth persistence. To do so, we match Dutch administrative firm level panel data with this startup database. We establish two main facts. First, although the vast majority of high growth firms in the Dutch economy does not appear in the database, included firms do have a higher probability of being a high growth firm. Second, in contrast to regular Dutch firms and previous findings in the literature, startups show a strikingly persistent growth pattern: their growth phases are prolonged. We conclude that commercial startup databases can complement more traditional data sources, but interpretation requires care due to unclear selection in the database. [ABSTRACT FROM AUTHOR]

Where do firms move? While there is plenty of past literature on this subject, studies have tended to focus on large manufacturing firms and their interregional movements. This paper proposes to analyze high-growth firms, which by definition generate a direct contribution to economic development, and their movements within an intrametropolitan area, specifically Columbus, Franklin County, Ohio. The past literature related to the neoclassical, behavioral, and institutional schools is reviewed. Each school produces a hypothesis: the neoclassical predicts movement to suburban areas, the behavior school to a nearby location, and the institutional school to places with higher vibrancy, such as downtown. The findings come with three distinct patterns of movements. In other words, the paper presents a complex reality in which all three hypotheses are partially supported, and no single theory is sufficient. Thus, we need to embrace a high level of heterogeneity among high-growth firms, which, despite their variety, can still provide more nuanced implications for economic and real estate developers, both in theory and practice. [ABSTRACT FROM AUTHOR]

The article discusses a new branch of industrial policy — support of high growth firms (HGFs, gazelle firms). Methodologically, the article is the first in Russia analysis of the international literature on the state programs of stimulation of the HGFs. The period, starting with the first publications on this topic in 2005–10 and ending with modern editions, has been covered. The primary purpose of the article was the establishment of the place of the policy of support for the HGFs within the framework of industrial policy, as well as to establish the changes that this new type of policy makes to economic regulation in general. Significant differences between the policy of support for HGFs and public policy on small and medium-sized enterprises, as well as differences from innovation policy, have been revealed. We proved that in the stimulation of the HGFs is particularly acute the generic and, at the same time, the most controversial feature of industrial policy — its selectivity, i.e. targeting specific economic actors, rather than the whole economy.

Business growth has been widely noted in the academic literature as a relevant variable that explains the level of employment and welfare. Recently, other studies consider the influence of High-Growth firms and Gazelles to explain the dynamics growth. The aim of this work is to approach business growth from a theoretical point of view, establishing is impact as a multidimensional variable. Some factors that explain the growth are look over to improve the impacts of them in the business growth such as size, age, region and economic cycle. Finally, this paper analyzes the studies of Colombian growth and their characteristics to explain their path and conditioning factors

How do high-growth firms (HGFs) affect the rest of the economy? We explore this question using Hungarian administrative microdata. Relying on the Birch definition of HGFs, we find evidence for stronger productivity growth for firms operating in industries with more HGFs and for firms supplying industries with more HGFs. Knowledge spillovers or the surge of HGFs' demand for intermediate inputs could explain these positive associations. Firms with intermediate productivity levels seem most likely to benefit from this effect, while we find no differences by age or export status. The results hold irrespective of the level of spatial aggregation and are robust to alternative definitions of HGFs as well as different measures of productivity or spillover. [ABSTRACT FROM AUTHOR]

In most developed countries, high growth firms (HGFs) are disproportionately responsible for net job creation, yet there is little information about how well such firms sustain their performance over time. Using GMM on a panel of 79,200 Romanian SMEs from 2000 to 2012, this paper evaluates the extent to which HGFs register stable and sustained growth over time, accounting for a variety of definitions for "high growth" that have been used in academic and policy literatures. Our results indicate that high growth SMEs are unable to maintain high growth rates for long, but do register lower volatility in growth rates and higher chances of survival. Identification of HGFs and results regarding growth volatility and persistence vary significantly with the specific definition of "high growth" used, as well as with the specific variable used to measure growth (e.g., revenue, employees, profit, productivity). Our findings have direct implications for growth policies and programs that depend on identifying HGFs. [ABSTRACT FROM AUTHOR]

The past twenty years have seen increased importance attached to high growth firms (HGFs). Despite decades of research, our knowledge of HGFs remains limited. Scholars have asserted that a key differentiator of HGFs is their ability to create value for their customers, yet this relationship has gone untested. This paper makes an important contribution to the literature by empirically exploring this relationship. Drawing on comparative cohorts of HGFs and non-HGFs, this paper finds that HGFs were found to be much more likely than their non-HGF counterparts to be positively influencing customer perceived value, the creation of which is considered to be an important enabler of firm performance and growth. In addition to its empirical contribution to the high growth entrepreneurship literature, this paper raises issues for future research.

This paper analyses the role that R&D and innovation has on the likelihood of a firm becoming a High-Growth Firm (HGF). The microdata is from the Community Innovation Survey provided by Eurostat, it covers the period 2008–2010, and we classify the EU countries into three clusters: Core countries, Mediterranean countries, and New EU Members. Our results show that there are large differences between each cluster. Technological innovations promote the likelihood of Core countries becoming an HGF, non-technological innovations are a key determinant for Mediterranean countries, and in New EU members the drivers are more related to firm characteristics and international trade.

Copyright of Revista Criterio Libre is the property of Revista Criterio Libre and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Promoting high growth firms (HGFs) has become a strong fixation within enterprise policy. This is a debate article seeking to examine and challenge the mythology perpetuated by policy makers and embedded within high growth entrepreneurship policy frameworks. Within the article we argue that a number of distinctive ‘myths’ have become deeply embedded within these policy frameworks. Such myths have been built on misconceived preconceptions of HGFs, which has resulted in policy-makers taking a myopic view of these firms. A key aim of the paper is to highlight how false perceptions of HGFs translate into inappropriate policy interventions. The paper challenges some of the most commonly held myths about these firms (that they are predominantly young, small, high-tech, VC-backed, university spin-outs, who grow in an orderly organic fashion, operating similarly irrespective of location) and identifies a clear mismatch between how policy makers perceive HGFs and what they actually look like in reality. Suggestions for the design of future policy approaches are forwarded. [ABSTRACT FROM AUTHOR]

This paper examines the dynamics of entrepreneurial acquisitions undertaken by UK high growth small and medium enterprises (SMEs). While entrepreneurial acquisitions are increasingly deployed by SMEs, little is known about their antecedents, motivational drivers and organisational outcomes. Drawing on detailed case study evidence from Scotland, the key factor found to be driving these acquisitions was the desire to augment and exploit technological complementarities between the acquiring and acquired firms. Acquisition can therefore be conceptualised as an advanced stage of the outside-in ‘open innovation’ strategies proactively used within these innovative SMEs. Firms executing this strategy typically have an acute propensity for risk, a desire for close customer engagement, effective business models and strong external orientation. The work suggests that greater attention should be paid within M&A theory to the dynamics of these types of smaller scale entrepreneurial acquisitions. [ABSTRACT FROM AUTHOR]

Theoretical and empirical studies of firm-industry dynamics have extensively focused on the process of growth. Theory predicts innovation, efficiency, profitability and financial status as the central channels through which firms can possibly achieve outstanding growth performance. The question is whether such high-growth performance is sustained over time and, if so, what are the factors enabling persistent high-growth patterns. Exploiting panels of Italian, Spanish, French and UK firms, we relate high growth, persistent high growth and other growth patterns to measures of efficiency, innovativeness, profitability and financial conditions. We find that high-growth firms are characterized by higher productivity and leverage, and that persistent high-growth firms do not systematically differ from other high-growth firms in none of the considered economic and financial dimensions. The findings are robust across countries, manufacturing and services. [ABSTRACT FROM AUTHOR]

High growth firms are now a major focus within enterprise policy. This paper provides a theoretically informed analysis of the rationale and effectiveness of targeted public sector support designed to develop these firms. Drawing on empirical research undertaken in the UK, this paper challenges the appropriateness of the theoretical assumptions embodied in these state-backed support instruments. It outlines the nature of these programmes and provides a critique of some of their inherent weaknesses, revealing that the assumptions underpinning these programmes are often flawed. The paper examines the limitations of their selection procedures, the thematic nature of support and exit dynamics. It found that offering early stage firms intensive levels of resources may have important (and detrimental) unintended consequences previously overlooked by policy makers. The paper offers some suggestions for how policy instruments could be better attuned to the needs of these growth-oriented firms. [ABSTRACT FROM AUTHOR]

In recent years, there has been an upsurge of interest by policy makers in high growth firms. Interest in these dynamic firms has primarily been driven by their prodigious ability to create new employment. Despite this, very little is known about the complex corporate geographies of these firms and their internationalisation processes. Using quantitative and qualitative data, this paper explores this issue by examining Scottish high growth firms. High growth firms were found to adopt more aggressive forms of international expansion, such as overseas acquisitions, than their non-high growth firm counterparts. As a result of these complex growth processes, a large proportion of high growth firm employment growth is generated outside Scotland. The paper concludes that the regional development impact of high growth firms for small peripheral economies in the UK is more limited than originally envisaged. The implications of the study for further research and public policy are examined. [ABSTRACT FROM AUTHOR]

Enterprise policy is increasingly favouring support for high growth firms (HGFs). However, this may be less effective in promoting new jobs and economic development in peripheral regions. This issue is addressed by a study of HGFs in Scotland. Scottish HGFs differ in a number of respects from the stylised facts in the literature. They create less employment than their counterparts elsewhere in the UK. Most have a significant physical presence outside of Scotland, thereby reducing their Scottish 'footprint' and domestic job creation. Scottish HGFs appear to have a high propensity to be acquired, increasing the susceptibility of the head office to closure. The evidence suggests that the tendency towards 'policy universalism' in the sphere of entrepreneurship policy is problematic. [ABSTRACT FROM AUTHOR]

Abstract: High growth firms and reducing innovation barriers figure high in the European innovation policy debate. Do high growth firms face specific innovation barriers which are relevant for innovation policy? In this paper we study the robustness of the perception of innovation barriers when alternative definitions of high growth firms are used. Using data from two waves of the European Innovation survey (CIS 4 and CIS 2006) we show not only that different definitions of high growth firms lead to quite different results across country groups, but also that the results are quite different for the CIS 4 and CIS 2006 samples. We argue that in the light of the available empirical evidence this non-robustness should not come as a surprise and that this negative result makes it difficult to specifically target high growth firms with public policies. Fostering the emergence of high growth innovative firms in Europe may not be feasible with targeted funding policies only but needs a systemic approach. [Copyright &y& Elsevier]

High growth firms play a disproportionate role in contributing to the economic vitality of regional economies. These are precisely the types of businesses that policy makers need to support in order to generate economic growth. Despite this, the article argues that current regional industrial and enterprise promotion policies in the UK are poorly equipped to help firms grow rapidly. This argument is developed by means of a critical examination of innovation support policies in Scotland. Indeed, many governments use such policies as a surrogate form of high growth firm policy. The article discusses the underlying principles and types of support which are needed to help foster and support rapidly growing firms. It argues that effective policy needs to be targeted, selective and customized to the specialist needs of high growth firms. The implementation of these types of policies is best delivered at a sub-national or regional level. [ABSTRACT FROM PUBLISHER]