Local Policies for High-Growth Firms

Abstract

This chapter identifies types of local policies that are conducive to generating high-growth firms. It discusses the transitions on the person level that precede the realization of a full-fledged high-growth firm: transitions into ambitious individuals, entrepreneur, and ambitious entrepreneurs. Insight into these preceding transitions is necessary in order to increase the pool of potential high-growth firms and to target particular transitions in the path toward becoming a high-growth firm. Important enabling high-growth firm policies can be found in the areas of education policy and labor market policy. Even though these enabling policies are rather generic in nature, they can be made more effective by targeting particular groups that are more relevant for particular transitions toward becoming a high-growth firm. In addition, there are many targeted industrial policies and regional cluster policies that also have direct implications for the presence of high-growth firms. In order for local policies to be effective they should not conflict with national and supranational policies.