The Economic Contribution of High-Growth Firms: Do Definitions Matter?
AbstractPrior studies have defined high-growth firms (HGFs) in terms of sales or employment, and analyzed their contribution to employment growth. We define HGFs by employment and sales and add definitions of value added and productivity. We examine the contribution of HGFs to employment growth, economic growth, productivity growth, and sales growth. All HGFs give a disproportionately large positive contribution to economic growth and most also give large positive contributions to growth in employment, productivity and sales. Although HGFs of different definitions are usually not the same firms, young firms are more likely to be HGFs irrespective of definition.
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Bibliographic InfoPaper provided by The Ratio Institute in its series Ratio Working Papers with number 151.
Length: 20 pages
Date of creation: 10 May 2010
Date of revision:
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Gazelles; Firm growth; High-impact firms;
Other versions of this item:
- Daunfeldt, Sven-Olov & Elert, Niklas & Johansson, Dan, 2010. "The economic contribution of high-growth firms: Do definitions matter?," HUI Working Papers 35, HUI Research.
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-15 (All new papers)
- NEP-CSE-2010-05-15 (Economics of Strategic Management)
- NEP-ENT-2010-05-15 (Entrepreneurship)
- NEP-SBM-2010-05-15 (Small Business Management)
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