Grow and Go? Retaining Scale-ups in the Nordic Countries
Scale-ups, i.e. firms that grow fast over a short period of time, significantly contribute
to job creation and economic growth. This study uses granular firm, establishment
and employee data to understand how relocations, domestic expansions or foreign acquisitions
impact the life cycle of scale-ups. Around 95% of scale-ups remain in their “home”
region over the 2014-20 period, reflecting the importance of their personal local
business networks in driving growth. Instead of relocating, many scale-ups create
new plants or branches in different regions to serve new customers, tap into new markets,
or to gain access to new resources and capabilities. Scale-ups that relocate or expand
continue to grow. However, relocations and expansions can be a challenge for talent
retention, as they may lead existing employees to find other opportunities in new
places. Foreign capital appears to support the scale-ups’ growth process. Across the
five Nordic countries, between 6% and 20% of scale-ups became foreign owned between
2014 and 2020.
Published on August 04, 2023
In series:OECD Regional Development Papersview more titles