Survival and Growth Patterns among New Technology-Based Firms: Empirical Study of Cohort 2006 in Sweden
Journal article, 2019

This study investigates the survival and growth trends in a cohort of new technology-based firms (NTBFs) established in Sweden in 2006. This cohort has faced both an economic upswing and a severe downturn, which started in 2008, and by 2014 provides 8 years of historical records. Our study makes several contributions to the current understanding of NTBF survival and growth. First, our empirical observations show that many NTBFs (72 percent) from the 2006 cohort were still operating at the end of 2014, indicating a much higher survival rate than those found in previous studies. Second, surviving firms from the 2006 cohort positively affected employment, as their annual job creation was higher than the reduction in employment caused by exiting firms. Third, very few companies experienced high-growth during their first 7 years, and employment growth and sales growth were highly correlated among high-growth firms.

high-growth firms

Job creation

Technology-based firms





Heikki Ranniko

Metropolia University of Applied Sciences

Ramböll AB

Erno T. Tornikoski

Grenoble Ecole de Management (GEM)

Anders Isaksson

Chalmers, Technology Management and Economics, Innovation and R&D Management

Hans Löfsten

Chalmers, Technology Management and Economics, Innovation and R&D Management

Journal of Small Business Management

0047-2778 (ISSN) 1540-627X (eISSN)

Vol. 57 2 640-657

Driving Forces

Innovation and entrepreneurship

Subject Categories

Business Administration



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