Abstract

The extent to which a small number of firms drive overall outcomes has shifted economists’ atten- tion from absolute numbers of firms to how high performing firms identify opportunities and allocate resources. It seems the processes by which resources are allocated can be more important to economic growth than the absolute amounts (i.e. the accumulation of inputs such as physical capital) (Jorgenson, 1995; Levine, 2005:7). ‘How’ rather than ‘how much’ seems to be the key issue. This raises the possibility that differences in economic performance can be explained by the extent to which different economies generate the high performance that enables firms to grow. As a result, support for high impact firms has attracted significant interest.

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