Using the Eurostat-OECD Definition of High-Growth Firms : A Cautionary Note

• Purpose – High-growth firms (HGFs) have attracted an increasing amount of attention from researchers and policymakers, and the Eurostat-Organisation for Economic Co-operation and Development (OECD) definition of HGFs has become increasingly popular. The paper aims to discuss this issue.Design/methodology/approach – The authors use a longitudinal firm-level data set to analyze the implications of using the Eurostat-OECD definition.Findings – The results indicate that this definition excluded almost 95 percent of surviving firms in Sweden, and about 40 percent of new private jobs during 2005-2008.Research limitations/implications – The proportion of small firms and their growth patterns differ across countries, and the authors therefore advise caution in using this definition in future studies.Practical implications – Policy based on the Eurostat-OECD definition of HGFs might be misleading or even counterproductive.Originality/value – No previous studies have analyzed the implications of using the Eurostat-OECD definition of HGFs.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Keyword

Industrial policy

Firm performance

Small to medium sized enterprises

Gazelles

High-growth firms

Economics

Nationalekonomi

General Microdata Analysis - others

Publication and Content Type

ref (subject category)

art (subject category)