The role of business subsidies in job-creation start-ups, gazelles and imcumbents

Heli Koski and Mika Pajarinen

No 1246, Discussion Papers from The Research Institute of the Finnish Economy

Abstract: Our data concerning the whole Finnish company population from the years 2003-2008 suggest that the impacts of business subsidies on employment growth differ more between high-growth start-ups and other firms than between start-ups and over five years old incumbents. All subsidies seem to relate positively to the contemporary employment growth both among start-ups and incumbents. Furthermore, our data show that both the employment of start-ups and older incumbents receiving employment or other subsidies grow more than that of non-subsidized firms after subsidy reception. Instead, we find that business subsidies do not provide significant further boost for the contemporary or after-subsidy growth of gazelles. There are apparently some other factors dominating the growth of young high-growth firms making them to grow strongly, in many cases, with or without subsidies.

Keywords: public subsidies; technology policy; growth; Finland (search for similar items in EconPapers)
JEL-codes: J23 L10 O33 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2011
New Economics Papers: this item is included in nep-cse, nep-ent and nep-sbm
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Citations: View citations in EconPapers (2)

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