Knowledge externalities and firm heterogeneity: Effects on high and low growth firms

Research output: Contribution to journalArticle


Knowledge externalities affect high and low growth firms differently. This paper develops two theoretical arguments. The knowledge equilibrium argument postulates that knowledge externalities weaken high growth firms for the benefit of low growth firms until performance differences vanish. The knowledge competition argument proposes that high growth firms are better positioned to identify, attract, and integrate knowledge, thereby expanding the performance gap between high and low growth firms. Based on 188,936 observations of 32,736 Swedish firms from 2004 to 2011, it is analysed whether knowledge externalities enable high growth firms to surge ahead or low growth firms to catch up.


Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Business Administration


  • competitiveness, knowledge spillovers, core-periphery, firm growth, externalities
Original languageEnglish
Pages (from-to)93-114
JournalPapers in Regional Science
Issue number1
Early online date2017 Dec 15
Publication statusPublished - 2019
Publication categoryResearch