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Regional Incidence of High-Growth Firms

Alex Coad, Clemens Domnick (), Pietro Santoleri and Stjepan Srhoj
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Clemens Domnick: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en

No JRC134577, JRC Research Reports from Joint Research Centre

Abstract: Policy-makers and scholars often assume that a higher incidence of high-growth firms (HGFs) is synonymous with vibrant regional economic dynamics. We test whether more developed regions, which presumably feature superior entrepreneurial ecosystems (EE), have a higher incidence of HGFs. Empirical evidence suggests that the highest shares of HGFs in Europe are found in peripheral regions, which goes against common assumptions and popular theories. The results call for i) a more nuanced interpretation of regional HGF shares, including a better understanding of their nature and drivers as well as ii) a refinement of the theoretical EE framework.

Keywords: high-growth firms; regional policy; regional economic development (search for similar items in EconPapers)
JEL-codes: L26 R11 (search for similar items in EconPapers)
Pages: 2 pages
Date: 2023-07
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ent, nep-sbm, nep-tid and nep-ure
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