Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87788
Authors: 
Koski, Heli
Pajarinen, Mika
Year of Publication: 
2011
Series/Report no.: 
ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 1246
Abstract: 
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.
Subjects: 
public subsidies
technology policy
growth
Finland
JEL: 
J23
L10
O33
Document Type: 
Working Paper

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