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Born Globals—Is there fire behind the smoke?

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  • Choquette, Eliane
  • Rask, Morten
  • Sala, Davide
  • Schröder, Philipp

Abstract

Are Born Globals really different from firms with other start-up histories? We address this question based on a unique longitudinal data set that tracks all Danish manufacturing start-ups founded between 1994 and 2008 (23,201 firms). This novel application of register data allows us to provide the first detailed account of Born Globals compared to proper control groups of other start-ups. Chiefly we investigate firm performance, which in turn permits interference on socioeconomic impact. We find that the occurrence of BGs is not specific to certain sectors, nor does their frequency change in light of rapid ICT progress. However, we find that Born Globals have significantly higher turnover and employment levels as well as job growth rates. Moreover, they show a considerably wider market reach, but little to no productivity advantage compared to firms with less or later internationalization. Thus, Born Globals are special in some but not all aspects.

Suggested Citation

  • Choquette, Eliane & Rask, Morten & Sala, Davide & Schröder, Philipp, 2017. "Born Globals—Is there fire behind the smoke?," International Business Review, Elsevier, vol. 26(3), pages 448-460.
    • Handle: RePEc:eee:iburev:v:26:y:2017:i:3:p:448-460
    DOI: 10.1016/j.ibusrev.2016.10.005
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