Regional incidence and persistence of high-growth firms: testing ideas from the entrepreneurial ecosystems literature
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Regional incidence and persistence of high-growth firms testing ideas from the entrepreneurial ecosystems literature.pdf
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2.03 MB
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40e8506ac7320f2446cdbd24b67ce58a
Author(s)
Coad, Alex
Domnick, Clemens
Santoleri, Pietro
Srhoj, Stjepan
Date Issued
January 8, 2025
Journal
Regional Studies
Publisher
Taylor & Francis
Citation
Coad, A., Domnick, C., Santoleri, P., & Srhoj, S. (2025). Regional incidence and persistence of high-growth firms: testing ideas from the entrepreneurial ecosystems literature. Regional Studies, 59(1).
Version
Final published version
Abstract
Policymakers and scholars often assume that a higher incidence of high-growth firms (HGFs) is synonymous with vibrant regional economic dynamics, and that HGF shares are persistent over time as entrepreneurial ecosystems (EEs) have slowly changing features. In this paper we test these hypotheses, which are deeply rooted in the EE literature. Results do not provide strong support for the hypothesis that more developed regions feature higher HGF shares. We do find evidence consistent with HGF shares displaying persistency over time. However, we show that more developed regions do not have higher persistence in their HGF shares, and that the strength in persistence does not increase across the HGFs distribution, which does not support path-dependency as the main mechanism behind the observed persistence. Overall, we call for a more nuanced interpretation of both regional HGF shares and the EEs literature.
MIT Department
Sloan School of Management
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Creative Commons Attribution-NonCommercial-NoDerivatives
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DOI of Published Version
https://doi.org/10.1080/00343404.2024.2433498
