Are high-growth firms overrepresented in high-tech industries?
2016 (English)In: Industrial and Corporate Change, ISSN 0960-6491, E-ISSN 1464-3650, Vol. 25, no 1, 1-21 p.Article in journal (Refereed) Published
It is frequently argued that policymakers should target high-tech firms, i.e., firms with high R&D intensity, because such firms are considered more innovative and therefore potential fast-growers. This argument relies on the assumption that the association among high-tech status, innovativeness, and growth is actually positive. We examine this assumption by studying the industry distribution of high-growth firms (HGFs) across all four-digit NACE industries, using data covering all limited liability firms in Sweden during the period 1997-2008. The results of fractional logit regressions indicate that industries with high R&D intensity, ceteris paribus, can be expected to have a lower share of HGFs than can industries with lower R&D intensity. The findings cast doubt on the wisdom of targeting R&D industries or subsidizing R&D to promote firm growth. In contrast, we find that HGFs are overrepresented in knowledge-intensive service industries, i.e., service industries with a high share of human capital.
Place, publisher, year, edition, pages
Oxford University Press, 2016. Vol. 25, no 1, 1-21 p.
Research subject Economics
IdentifiersURN: urn:nbn:se:oru:diva-52997DOI: 10.1093/icc/dtv035ISI: 000371151300001ScopusID: 2-s2.0-84960129450OAI: oai:DiVA.org:oru-52997DiVA: diva2:1037732
R&D Fund of the Swedish Tourism and Hospitality Industry (BFUF)2016-10-172016-10-172016-10-19Bibliographically approved