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Gazelles and industry growth: a study of young high-growth firms in The Netherlands

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  • Jaap W. B. Bos
  • Erik Stam

Abstract

This article examines to what extent and how the presence of gazelles, young high-impact firms, is related to the growth of industries over time. For this purpose, we analyze gazelles in The Netherlands over a 12-year period, annually from 1997 until 2008, and relate them to the dynamics of industry employment. We use a panel vector autoregressive model to explore the relationship between the prevalence of gazelles in an industry and industry employment growth, in an economy-wide dataset including 43 two-digit industries. An increase in the prevalence of gazelles in an industry appears to have a positive effect on subsequent industry growth. We do not find evidence of an inverse causal relationship: there are no long-run positive effects of increases in industry growth on the prevalence of gazelles. There is also no relationship between overrepresentation of gazelles and subsequent industry growth. Copyright 2014 The Author 2013. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • Jaap W. B. Bos & Erik Stam, 2014. "Gazelles and industry growth: a study of young high-growth firms in The Netherlands," Industrial and Corporate Change, Oxford University Press, vol. 23(1), pages 145-169, February.
  • Handle: RePEc:oup:indcch:v:23:y:2014:i:1:p:145-169
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    Cited by:

    1. F.C. Stam & Andrew van de Ven, 2018. "Entrepreneurial Ecosystems : A Systems Perspective," Working Papers 18-06, Utrecht School of Economics.
    2. Cosimo Abbate & Alessandro Sapio, 2016. "Gazelles and muppets in the City: Stock market listing, risk sharing, and firm growth quantiles," LEM Papers Series 2016/33, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Sven-Olov Daunfeldt & Niklas Elert & Dan Johansson, 2016. "Are high-growth firms overrepresented in high-tech industries?," Industrial and Corporate Change, Oxford University Press, vol. 25(1), pages 1-21.
    4. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    5. repec:col:000093:017124 is not listed on IDEAS
    6. repec:elg:eechap:14395_15 is not listed on IDEAS
    7. Masatoshi Kato & Koichiro Onishi & Yuji Honjo, 2017. "Does patenting always help new-firm survival?," Discussion Paper Series 159, School of Economics, Kwansei Gakuin University, revised May 2017.
    8. Besnik A. Krasniqi & Sameeksha Desai, 2016. "Institutional drivers of high-growth firms: country-level evidence from 26 transition economies," Small Business Economics, Springer, vol. 47(4), pages 1075-1094, December.
    9. Masatoshi Kato, 2017. "Founders’ human capital and external knowledge sourcing: An absorptive capacity perspective for innovative start-ups," Discussion Paper Series 162, School of Economics, Kwansei Gakuin University, revised Jun 2017.
    10. Giuseppina Testa & Katarzyna Szkuta, 2018. "Improving access to finance for young innovative enterprises with growth potential: evidence of impact on firms' output - Part 2. R&D grant schemes: lessons learned from evaluations," JRC Working Papers JRC109879, Joint Research Centre (Seville site).
    11. Masatoshi Kato, 2016. "Internal R&D and External Knowledge Acquisition of Start-up Firms: Exploring the Role of Entrepreneurial Human Capital," Discussion Paper Series 145, School of Economics, Kwansei Gakuin University, revised Jul 2016.
    12. Alex Coad & Sven-Olov Daunfeldt & Dan Johansson & Karl Wennberg, 2014. "Whom do high-growth firms hire?," Industrial and Corporate Change, Oxford University Press, vol. 23(1), pages 293-327, February.
    13. repec:nax:conyad:v:64:y:2019:i:1:p:59-60 is not listed on IDEAS

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