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

Daunfeldt, Sven-Olov, Halvarsson, Daniel and Johansson, Dan (2015). Using the Eurostat-OECD Definition of High-Growth Firms: A Cautionary Note. Journal of Entrepreneurship and Public Policy, 4(1): 50–56.

Posted: 11 May 2021

See all articles by Sven-Olov Daunfeldt

Sven-Olov Daunfeldt

HUI Research

Daniel Halvarsson

Ratio Institute

Dan Johansson

Örebro University School of Business

Date Written: May 4, 2015

Abstract

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.

Keywords: Industrial policy, Firm performance, Small to medium sized enterprises, Gazelles, High-growth firms

JEL Classification: L22, L25, L26

Suggested Citation

Daunfeldt, Sven-Olov and Halvarsson, Daniel and Johansson, Dan, Using the Eurostat-OECD Definition of High-Growth Firms: A Cautionary Note (May 4, 2015). Daunfeldt, Sven-Olov, Halvarsson, Daniel and Johansson, Dan (2015). Using the Eurostat-OECD Definition of High-Growth Firms: A Cautionary Note. Journal of Entrepreneurship and Public Policy, 4(1): 50–56., Available at SSRN: https://ssrn.com/abstract=3839430

Sven-Olov Daunfeldt

HUI Research ( email )

Regerinsgatan 60
Stockholm, SE-10329
Sweden

Daniel Halvarsson

Ratio Institute ( email )

P.O. Box 3203
SE-103 64 Stockholm
Sweden

Dan Johansson (Contact Author)

Örebro University School of Business ( email )

School of Business
Örebro, SE-70182
Sweden

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
28
PlumX Metrics