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Knowledge flows in high-impact firms: How does relatedness influence survival, acquisition and exit?

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  • Jonathan Borggren
  • Rikard H. Eriksson
  • Urban Lindgren

Abstract

Following the impact on regional renewal and employment ascribed to rapidly growing firms (High impact firms, HIFs) this article argues that little is still known in economic geography and business studies today regarding the mechanisms influencing growth of such firms and, hence, the potential impact on regional employment. The aim of this article is thus to explore how the qualitative content of skills (i.e. the degree of similarity, relatedness and un-relatedness) recruited to a firm during a period of fast growth, which influences its future success. Our findings, based on a sample of 1589 HIFs in the Swedish economy, suggest that it is not only the number of people employed that matters to aid understanding of the future destiny of the firms—but also, more importantly, it is the scope of the skills recruited and their proximity to related industries.

Suggested Citation

  • Jonathan Borggren & Rikard H. Eriksson & Urban Lindgren, 2016. "Knowledge flows in high-impact firms: How does relatedness influence survival, acquisition and exit?," Journal of Economic Geography, Oxford University Press, vol. 16(3), pages 637-665.
    • Handle: RePEc:oup:jecgeo:v:16:y:2016:i:3:p:637-665.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbv014
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    Cited by:

    1. Lars-Fredrik Andersson & Therese Danley & Rikard Eriksson & Martin Henning, 2020. "Workers’ participation in regional economic change following establishment closure," Small Business Economics, Springer, vol. 54(2), pages 589-604, February.
    2. Riccardo Cappelli & Ron Boschma & Anet Weterings, 2019. "Labour mobility, skill-relatedness and new plant survival across different development stages of an industry," Environment and Planning A, , vol. 51(4), pages 869-890, June.
    3. Ron Boschma & Riccardo Cappelli & Anet Weterings, 2017. "Labour mobility, skill-relatedness and plant survival over the industry life cycle: Evidence from new Dutch plants," Papers in Evolutionary Economic Geography (PEEG) 1731, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2017.
    4. Antoine Habersetzer, Rikard Eriksson, Heike Mayer, 2017. "Entrepreneurship in the periphery: The role of pre-entry experience and home advantage for newly founded firms," Diskussionsschriften credresearchpaper14, Universitaet Bern, Departement Volkswirtschaft - CRED.

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