This essay argues that the economic contribution of certain firms – be they small, young or rapidly growing – has to be understood in a broader context of creative destruction. Growth of some firms requires contraction and exit of some other firms to free up resources that can be reallocated...

High-growth firms (HGFs) are critical for net job creation and economic growth. We analyze HGFs using the theory of competence blocs, linking firm growth to property rights and the interaction of complementary expertise. Specifically, we discuss how the institutional framework affects the...

It is often claimed that small and young firms account for a disproportionately large share of net employment growth. We conduct a meta analysis of the empirical evidence regarding whether net employment growth rather is generated by a few rapidly growing firms – so-called Gazelles – that...

The parallel development of management theory and practice over three phases of economic development is surveyed; (1) the pre-oil crisis experience 1969-1975, (2) the post oil crisis sobering up through most of the 1990s and (3) the emergence of new global production organizations , blurring the...

In the literature concerning the geography of new firm formation, explanatory variables pertaining to industrial organization and political economy are seldom considered. Such variables were thus included when investigating what conditions influenced entry of Swedish limited liability firms...

In this paper we analyze whether a firm’s return to its R&D stock is affected by seller-buyer interactions. We suggest that firms that are in close contact with their customers will be relatively more sensitive to their customers’ needs, and therefore adjust their R&D activities accordingly....