The role of business subsidies in job-creation start-ups, gazelles and imcumbents

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Our data concerning the whole Finnish company population from the years 2003-2008 suggest that the impacts of business subsidies on employment growth differ more between high-growth start-ups and other firms than between start-ups and over five years old incumbents. All subsidies seem to relate positively to the contemporary employment growth both among start-ups and incumbents. Furthermore, our data show that both the employment of start-ups and older incumbents receiving employment or other subsidies grow more than that of non-subsidized firms after subsidy reception. Instead, we find that business subsidies do not provide significant further boost for the contemporary or after-subsidy growth of gazelles. There are apparently some other factors dominating the growth of young high-growth firms making them to grow strongly, in many cases, with or without subsidies.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ETLA Discussion Papers ; No. 1246

Classification and Topics

• Classification: Wirtschaft ; Labor Demand ; Market Structure, Firm Strategy, and Market Performance: General ; Technological Change: Choices and Consequences; Diffusion Processes
• Subject: public subsidies ; technology policy ; growth ; Finland ; Unternehmensfinanzierung ; Subvention ; Beschäftigungseffekt ; Forschungs- und Technologiepolitik ; Finnland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Koski, Heli ; Pajarinen, Mika
• Event: Veröffentlichung
• (who): The Research Institute of the Finnish Economy (ETLA)
• (where): Helsinki
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/87788