IDEAS home Printed from https://ideas.repec.org/a/ekz/ekonoz/2019107.html
   My bibliography  Save this article

Unleashing firms´ growth potential

Author

Listed:
  • Rudy Aernoudt

    (Senior economist DG GROW European Commission)

Abstract

For a long time, growth has been assumed to be the result of an optimal combination of the production factors of labour and capital. This article argues that growth of companies no longer depends on only those two factors, but also on a third one: i.e., intangibles, such as investment readiness, investors mindset and entrepreneurship. Tangibles are the necessary, but not sufficient condition. The current era of robotization, digitalization and disruptive innovation increases the importance of the intangibles. Therefore, regional policy should henceforth be reoriented towards those intangibles leaving behind the classical subsidy-oriented policy, focused on SMEs as such, without controlling for those intangibles. That is the only way to achieve that companies with a growth potential can succeed in becoming a scale-up company, and that lifestyle companies optimize their growth potential. Moreover, if support policies are designed on that basis, they might even bring former offshored companies back.

Suggested Citation

  • Rudy Aernoudt, 2019. "Unleashing firms´ growth potential," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 95(01), pages 135-155.
    • Handle: RePEc:ekz:ekonoz:2019107
    as

    Download full text from publisher

    File URL: http://www.euskadi.eus/web01-a2reveko/es/k86aEkonomiazWar/ekonomiaz/downloadPDF?R01HNoPortal=true&idpubl=91®istro=12
    File Function: complete text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    entrepreneurship; high-growth focused policies; investment-readiness; lifestyle companies; offshoring; reshoring; scale-up gap;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ekz:ekonoz:2019107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iñaki Treviño (email available below). General contact details of provider: https://edirc.repec.org/data/debages.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.