Knowledge spillovers, entrepreneurial ecosystems and the geography of high growth firms redux

Abstract

High-growth firms (HGFs) exist across most regions, yet some UK local authority districts (LADs) consistently outperform others in their prevalence. This study investigates why, focusing on knowledge spillovers and entrepreneurial ecosystems (EE) as drivers of HGF incidence. Replicating and extending Fotopoulos (2023), we analyse longitudinal data from 2009 to 2021, refining methods to address autocorrelation biases from overlapping periods. Our findings confirm persistent inter-regional differences in HGFs incidence rates, driven by robust human capital, creative industries, and business services, though evidence for knowledge spillovers remains weak, meriting further exploration. By offering longitudinal evidence from a high-quality EE context, we enrich debates on regional HGF persistence and the EE framework’s utility, informing policies aiming to foster productive entrepreneurship.