High growth firms, jobs and peripheral regions: the case of Scotland

High growth firms (HGFs) are expected to be a major source of job creation during the economic recovery. This has prompted a shift in enterprise policy in many countries away from supporting startups and in favour of the promotion of HGFs. However this approach may be less effective in promoting new jobs and economic development in peripheral regions. This issue is addressed by a study of HGFs in Scotland. The origin and characteristics of Scottish HGFs differ in a number of respects from the stylized facts in the literature. Scottish HGFs create less employment than their counterparts elsewhere in the UK. Most Scottish HGFs have a significant physical presence outside of Scotland, thereby reducing their Scottish 'footprint' and domestic job creation. Scottish HGFs appear to have a high propensity to be acquired, increasing their susceptibility to head office closure. The paper concludes that the tendency towards 'policy universalism' in the sphere of entrepreneurship policy is problematic.