The Long-Run Performance of Born Globals in Computing: The Role of Digital Platforms

Shon Ferguson and Magnus Henrekson ()

No 1224, Working Paper Series from Research Institute of Industrial Economics

Abstract: Using data on all Swedish computing startups founded 2007–2015, we find a systematic positive relationship between the propensity of a computing firm to reach customers globally via digital platforms and its long-run employment growth relative to domestic-oriented computer firms. We also find positive, yet weaker, evidence that born globals in computing grow faster in terms of sales or value added. Our analysis also indicates that very few computing firms fit the profile of born globals; only 15% of the 250 largest computing employers in 2015 were born globals. Moreover, only 1.5% of computing startups founded 2007–2015 were computer game publishers, which arguably have the highest propensity to be born global. Thus, although we find positive born global effects at the firm level, policymakers must be aware that encouraging more born globals need not necessarily lead to large benefits for the overall economy.

Keywords: Born globals; Computing industry; Exporting; Firm growth; Globalization; Job creation (search for similar items in EconPapers)
JEL-codes: F14 F23 L25 M13 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2018-08-10, Revised 2019-10-23
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ent, nep-int and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:1224

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