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Firm growth: empirical analysis

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  • Alex Coad

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  • Werner Hölzl

Abstract

Recent research has led to the empirical regularity that firm growth rate distributions are heavy tailed. This finding implies that a few firms experience spectacular growth rates and decline, but that most firms have marginal growth rates. The literature on high growth firms shows that high growth firms are the central drivers of job creation in the economy but that these firms are neither clustered in high technology sectors nor are these firms necessarily young and small. The evidence on the determinants of firm growth confirms that firm growth is difficult to predict. The finding that firm growth is well approximated by a random process does not only reflect the heterogeneity at the firm level but is also associated with the low persistence of growth rates over time.

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Paper provided by Philipps University Marburg, Department of Geography in its series Papers on Economics and Evolution with number 2010-02.

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Date of creation: Feb 2010
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Handle: RePEc:esi:evopap:2010-02

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Keywords: firm growth Length 25 pages;

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Cited by:
  1. Daunfeldt, Sven-Olov & Elert, Niklas & Johansson, Dan, 2010. "The economic contribution of high-growth firms: Do definitions matter?," HUI Working Papers 35, HUI Research.
  2. Klaus Friesenbichler, 2013. "Firm Growth in Conflict Countries: Some Evidence from South Asia," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 33-44, May.
  3. Peter Huber & Harald Oberhofer & Michael Pfaffermayr, 2014. "Job creation and the intra-distribution dynamics of the firm size distribution," Industrial and Corporate Change, Oxford University Press, vol. 23(1), pages 171-197, February.
  4. Pietro Moncada-Paterno-Castello, 2011. "Companies' growth in the EU: What is research and innovation policy's role?," JRC-IPTS Working Papers on Corporate R&D and Innovation 2011-03, Institute of Prospective Technological Studies, Joint Research Centre.
  5. Werner Hölzl & Jürgen Janger, 2012. "Innovation Barriers across Firms and Countries," WIFO Working Papers 426, WIFO.
  6. Pietro Moncada-Paternò-Castello & Peter Voigt, 2012. "Projection of R&D-intensive enterprise growth to the year 2020: Implications for EU policy?," JRC-IPTS Working Papers on Corporate R&D and Innovation 2012-01, Institute of Prospective Technological Studies, Joint Research Centre.
  7. Jan de Kok & Haibo Zhou & Chantal Hartog & Peter van der Zwan, 2012. "The Risk of growing fast: does fast growth have a negative impact on the survival rates of firms?," Scales Research Reports H201209, EIM Business and Policy Research.
  8. Segarra Blasco, Agustí, 1958- & Teruel, Mercedes, 2014. "High-growth firms and innovation: an empirical analysis for Spanish firms," Working Papers 2072/228402, Universitat Rovira i Virgili, Department of Economics.
  9. Jan de Kok & Haibo Zhou & Chantal Hartog, 2012. "The risk of growing fast," Scales Research Reports H201119, EIM Business and Policy Research.
  10. Westerberg, Hans Seerar, 2014. "The Return to R&D and Seller-buyer Interactions: A Quantile Regression Approach," Ratio Working Papers 231, The Ratio Institute.
  11. Sánchez-Valadez, Manuel, 2012. "Decisiones financieras, competencia en el mercado y desempeño de las empresas: Evidencia empírica para Iberoamérica/Financial Decisions, Market Competition and Firm Performance: Empirical Evidence ," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 359 (36 pag, Abril.
  12. Segarra Blasco, Agustí & Teruel Carrizosa, Mercedes, 2011. "High Growth Firms and Innovation: an empirical analysis for Spanish firms," Working Papers 2072/179669, Universitat Rovira i Virgili, Department of Economics.
  13. Werner Hölzl, 2012. "Job Creation and Employment Size Categories. A Study of Methodological Alternatives," WIFO Working Papers 425, WIFO.

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