Startup Types and Macroeconomic Performance in Europe

Ralph De Haas, Vincent Sterk and Neeltje Van Horen

No 17400, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We construct a new and comprehensive data set on 1.3 million European startups. A cluster analysis identifies five distinct startup types that are consistently present across countries, industries, and cohorts. The initial differences between these startup types are persistent and each type displays a characteristic life cycle in terms of productivity, employment, and survival. An agnostic firm dynamics model helps quantify how much structural policy could improve macroeconomic performance by shifting the composition of startup cohorts. We show that policies benefiting high-performance startups, while discouraging the entry of underperforming firms, can yield substantial gains in aggregate employment and productivity.

Keywords: Startups; entrepreneurship (search for similar items in EconPapers)
JEL-codes: D22 D24 G32 L11 L25 L26 O47 (search for similar items in EconPapers)
Date: 2022-06
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Working Paper: Start-up types and macroeconomic performance in Europe (2022)
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