Creating good public policy to support high-growth firms
Writing in Small Business Economics Scott Shane argues that policy-makers should stop subsidising start-ups and instead focus on supporting the small subset of new businesses with high growth potential. However, both Shane and other scholars who have made the same argument only offer broad-brush proposals to achieve this objective. The aim of this article, in contrast, is to engage in a detailed discussion of how to create appropriate policies for high-growth firms (HGFs). Drawing on research in Scotland, we argue that policy-makers are looking for HGFs in the wrong places. The heterogeneous nature of HGFs in terms of sector, age, size and origins makes in impractical to target support on particular sectors, technologies or types of firms (e.g., new or R&D intensive). The article proposes a reorientation of HGFs, both in terms of appropriate targeting and forms of support. Public policy also needs to focus on the retention of HGFs which are acquired by non-local businesses. Finally, policy-makers need to properly reflect upon the specificities of their entrepreneurial environment when devising appropriate policy interventions. Copyright Springer Science+Business Media, LLC. 2013
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Magnus Henrekson & Dan Johansson, 2010.
"Gazelles as job creators: a survey and interpretation of the evidence,"
Small Business Economics,
Springer, vol. 35(2), pages 227-244, September.
- Henrekson, Magnus & Johansson, Dan, 2008. "Gazelles as Job Creators – A Survey and Interpretation of the Evidence," Working Paper Series 733, Research Institute of Industrial Economics.
- Henrekson, Magnus & Johansson, Dan, 2008. "Gazelles as Job Creators – A Survey and Interpretation of the Evidence," Ratio Working Papers 117, The Ratio Institute.
- Spielkamp, Alfred & Czarnitzki, Dirk & Rammer, Christian, 2008.
"Innovation Success of Non-R&D-Performers: Substituting Technology by Management in SMEs,"
ZEW Discussion Papers
08-092, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Christian Rammer & Dirk Czarnitzki & Alfred Spielkamp, 2009. "Innovation success of non-R&D-performers: substituting technology by management in SMEs," Small Business Economics, Springer, vol. 33(1), pages 35-58, June.
- Robson, Paul J A & Bennett, Robert J, 2000. " SME Growth: The Relationship with Business Advice and External Collaboration," Small Business Economics, Springer, vol. 15(3), pages 193-208.
- Mark Freel, 2000. "External linkages and product innovation in small manufacturing firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 12(3), pages 245-266, July.
- Pooran Wynarczyk & Robert Watson, 2005. "Firm Growth and Supply Chain Partnerships: An Empirical Analysis of U.K. SME Subcontractors," Small Business Economics, Springer, vol. 24(1), pages 39-51, February.
- Henrekson, Magnus & Johansson, Dan, 2008.
"Competencies and Institutions Fostering High-growth Firms,"
Working Paper Series
757, Research Institute of Industrial Economics.
- Henrekson, Magnus & Johansson, Dan, 2008. "Competencies and Institutions Fostering High-growth Firms," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 5(1), pages 1-80, November.
- Henrekson, Magnus & Johansson, Dan, 2008. "Competencies and Institutions Fostering High-growth Firms," Ratio Working Papers 123, The Ratio Institute.
- Elizabeth Garnsey & Erik Stam & Paul Heffernan, 2006.
"New Firm Growth: Exploring Processes and Paths,"
Industry and Innovation,
Taylor & Francis Journals, vol. 13(1), pages 1-20.
- Garnsey, E. & Stam, F.C. & Heffernan, P. & Hugo, O., 2003. "New Firm Growth: Exploring Processes and Paths," ERIM Report Series Research in Management ERS-2003-096-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Rodrik, Dani, 2004.
"Industrial Policy for the Twenty-First Century,"
CEPR Discussion Papers
4767, C.E.P.R. Discussion Papers.
- Colin Mason & Richard Harrison, 2006. "After the exit: Acquisitions, entrepreneurial recycling and regional economic development," Regional Studies, Taylor & Francis Journals, vol. 40(1), pages 55-73.
- Gompers, Paul & Kovner, Anna & Lerner, Josh & Scharfstein, David, 2010. "Performance persistence in entrepreneurship," Journal of Financial Economics, Elsevier, vol. 96(1), pages 18-32, April.
- Mark J. Ahn & Michael D. Meeks & Sally Davenport & Rebecca Bednarek, 2009. "Death Of Distance? — Biotechnology Agglomeration Patterns, Alliance Proximity, And Firm Performance," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 247-264.
- Kevin Mole & Mark Hart & Stephen Roper & David Saal, 2008. "Differential gains from Business Link support and advice: a treatment effects approach," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 26(2), pages 315-334, April.
- Audretsch, David B., 2007.
"The Entrepreneurial Society,"
Oxford University Press, number 9780195183504.
- Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.
- Rialp, Alex & Rialp, Josep & Knight, Gary A., 2005. "The phenomenon of early internationalizing firms: what do we know after a decade (1993-2003) of scientific inquiry?," International Business Review, Elsevier, vol. 14(2), pages 147-166, April.
- Josh Lerner, 2010. "The future of public efforts to boost entrepreneurship and venture capital," Small Business Economics, Springer, vol. 35(3), pages 255-264, October.
- Junfu Zhang, 2011.
"The advantage of experienced start-up founders in venture capital acquisition: evidence from serial entrepreneurs,"
Small Business Economics,
Springer, vol. 36(2), pages 187-208, February.
- Zhang, Junfu, 2007. "The Advantage of Experienced Start-Up Founders in Venture Capital Acquisition: Evidence from Serial Entrepreneurs," IZA Discussion Papers 2964, Institute for the Study of Labor (IZA).
- Meric Gertler, 2010. "Rules of the Game: The Place of Institutions in Regional Economic Change," Regional Studies, Taylor & Francis Journals, vol. 44(1), pages 1-15.
- Karlsson, Charlie & Andersson, Martin, 2009. "Entrepreneurship Policies: Principles, Problems and Opportunities," CISEG Working Papers Series 7, Centre for Innovation Systems, Entrepreneurship and Growth, Jönköping International Business School.
- Simon Parker & David Storey & Arjen Witteloostuijn, 2010. "What happens to gazelles? The importance of dynamic management strategy," Small Business Economics, Springer, vol. 35(2), pages 203-226, September.
- Erik Stam & Karl Wennberg, 2009.
"The roles of R&D in new firm growth,"
Small Business Economics,
Springer, vol. 33(1), pages 77-89, June.
- Vohora, Ajay & Wright, Mike & Lockett, Andy, 2004. "Critical junctures in the development of university high-tech spinout companies," Research Policy, Elsevier, vol. 33(1), pages 147-175, January.
- Massimo Colombo & Philippe Mustar & Mike Wright, 2010. "Dynamics of Science-based entrepreneurship," The Journal of Technology Transfer, Springer, vol. 35(1), pages 1-15, February.
- Meuleman,M. & Amess, K. & Wright, M. & Scholes, L., 2008. "Agency, strategic entrepreneurship and the performance of private equity backed buyouts," Vlerick Leuven Gent Management School Working Paper Series 2008-05, Vlerick Leuven Gent Management School.
When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:40:y:2013:i:2:p:211-225. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.