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Working Paper

Targeted Support for High Growth Firms: Theoretical Constraints, Unintended Consequences and Future Policy Challenges

Citation
Brown R & Mawson S (2015) Targeted Support for High Growth Firms: Theoretical Constraints, Unintended Consequences and Future Policy Challenges. RBF Working Paper Series, 15-006. Centre for Responsible Banking & Finance. https://www.st-andrews.ac.uk/business/rbf/workingpapers/RBF15_006.pdf

Abstract
High growth firms are now a major focus within enterprise policy. This paper provides a theoretically informed analysis of the rationale and effectiveness of targeted public sector support designed to develop these firms. Drawing on empirical research undertaken in the UK, this paper challenges the appropriateness of the theoretical assumptions embodied in these state-backed support instruments. It outlines the nature of these programmes and provides a critique of some of their inherent weaknesses, revealing that the assumptions underpinning these programmes are often flawed. The paper examines the limitations of their selection procedures, the thematic nature of support and exit dynamics. It found that offering early stage firms intensive levels of resources may have important (and detrimental) unintended consequences previously overlooked by policy makers. The paper offers some suggestions for how policy instruments could be better attuned to the needs of these growth-oriented firms.

StatusUnpublished
Author(s)Brown, Ross; Mawson, Suzanne
FundersScottish Enterprise and Organisation for Economic Co-operation and Development
Title of seriesRBF Working Paper Series
Number in series15-006
Publication date01/08/2016
Publication date online24/11/2015
URLhttp://hdl.handle.net/1893/29691
Publisher URLhttps://www.st-andrews.ac.uk/…rs/RBF15_006.pdf
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