Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/183439 
Year of Publication: 
2018
Series/Report no.: 
IFN Working Paper No. 1210
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
Policymakers in several countries have recently taken steps to promote the rapid export expansion of small- and medium-sized enterprises (SMEs). The goal of these policies has been to create successful export-intensive firms, which are often referred to as born globals. These measures are motivated by studies claiming that born global firms are disproportionately important for job creation and economic growth. Using detailed register data on the universe of Swedish manufacturing firms born between 2001 and 2008, we find that born globals are a very small group of firms whose long-run size and growth do not outperform other exporting firms. Thus, the notion that born globals are superior to firms that follow a more gradual internationalization process, a conclusion largely based on case studies and surveys, does not withstand scrutiny. Policymakers must therefore be aware that encouraging more born globals need not necessarily lead to large benefits for the overall economy, especially in terms of employment.
Subjects: 
Born globals
Exporting
Firm growth
Globalization
Job creation
JEL: 
F14
F23
L25
M13
Document Type: 
Working Paper

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