– 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.
– The authors use a longitudinal firm-level data set to analyze the implications of using the Eurostat-OECD definition.
– 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.
– 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.
– Policy based on the Eurostat-OECD definition of HGFs might be misleading or even counterproductive.
– No previous studies have analyzed the implications of using the Eurostat-OECD definition of HGFs.
