2019

The Long-Run Performance of Born Globals in Computing: The Role of Digital Platforms

Reprint No. 2019:56

Author(s): Shon Ferguson and Magnus Henrekson Year: 2019 Title: International Review of Entrepreneurship Volume (No.): 17 (3) Pages: 257–280
Online article (restrictions may apply)

The Long-Run Performance of Born Globals in Computing: The Role of Digital Platforms Shon Ferguson and Magnus Henrekson


Using data on all Swedish startups in the computing sector founded 2007–2015, we find a systematic positive relationship between the propensity of a computing firm to reach customers globally via digital platforms and its long-run employment growth relative to domestic-oriented computing firms. We also find positive, yet weaker, evidence that born globals in computing grow faster in terms of sales or value added. Our analysis also indicates that very few computing firms fit the profile of born globals; only 15% of the 250 largest computing employers in 2015 were born globals. Moreover, only 1.5% of computing startups founded 2007–2015 were computer game publishers, which arguably have the highest propensity to be born global. Thus, although we find positive born global effects at the firm level, policymakers must be aware that encouraging more born globals need not necessarily lead to large benefits for the overall economy.


Reference:
Ferguson, Shon and Magnus Henrekson (2019), "The Long-Run Performance of Born Globals in Computing: The Role of Digital Platforms". International Review of Entrepreneurship 17(3), 257–280.

Interdisciplinary European Studies

The European Union and the Return of the Nation State

9783030350048_200x_the-european-union-and-the-return-of-the-nation-state.jpg

This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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