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Public Aid and the Performance of Born Globals

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  • Flora Bellone
  • Catherine Laffineur
  • Sophie Pommet

Abstract

[eng] Analyses of born-global firms have not yet provided a comprehensive picture of the role of public aid in supporting those firms that specifically seek to internationalize early and intensively. To fill this gap, this paper uses a unique dataset that combines comprehensive infor-mation about both the production and export activities of newly established French manufacturing firms and a variety of public support instruments allocated to those firms by Bpifrance, the French public investment bank. Our key result is that French born globals are less likely than their more traditional exporting counterparts to receive public aid dedicated to generally sup¬port their investment projects. By contrast, they are as or more likely to receive public aids specifically dedicated to support their innovation and internationalization projects. We also show that the returns on aid dedicated to investment projects are especially high for born globals. We conclude that there is room to improve the allocative efficiency of public support towards born-global firms.

Suggested Citation

  • Flora Bellone & Catherine Laffineur & Sophie Pommet, 2023. "Public Aid and the Performance of Born Globals," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 540, pages 43-60.
    • Handle: RePEc:nse:ecosta:ecostat_2023_540_3
    DOI: https://doi.org/10.24187/ecostat.2023.540.2102
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    1. Felix Tintelnot, 2017. "Global Production with Export Platforms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(1), pages 157-209.
    2. Sui Sui & Matthias Baum, 2014. "Internationalization strategy, firm resources and the survival of SMEs in the export market," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(7), pages 821-841, September.
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