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Knowledge flows in high-impact firms: How does relatedness influence survival, acquisition and exit?

Author

Listed:
  • Jonathan Borggren
  • Rikard H. Eriksson
  • Urban Lindgren

Abstract

Following the impact on regional renewal and employment ascribed to rapidly growing firms (high-impact firms, HIFs), this paper argues that little is still known in economic geography and business studies today regarding the mechanisms influencing growth of such firms and, hence, the potential impact on regional employment. The aim of this paper is thus to explore how the qualitative content of skills (i.e. the degree of similarity, relatedness and unrelatedness) recruited to a firm during a period of fast growth influences its future success. Our findings, based on a sample of 1,589 HIFs in the Swedish economy, suggest that it is not only the number of people employed that matters in aiding the understanding of the future destiny of the firms –"but also, more importantly, it is the scope of the skills recruited and their proximity to related industries.

Suggested Citation

  • Jonathan Borggren & Rikard H. Eriksson & Urban Lindgren, 2015. "Knowledge flows in high-impact firms: How does relatedness influence survival, acquisition and exit?," Papers in Evolutionary Economic Geography (PEEG) 1512, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    • Handle: RePEc:egu:wpaper:1512
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    Cited by:

    1. Bellmann, Lisa & Brixy, Udo, 2018. "Hiring by start-ups and regional labor supply," IAB-Discussion Paper 201818, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.

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    More about this item

    Keywords

    high-impact firms; skills; relatedness; labor flows;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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