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NOTE: Since 2009 the title of the International Journal of Entrepreneurship Education (IJEE) has been changed to the title above.  ISSN numbers: IJEE 1649-2269 and IRE 2009-2822

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ISSN Number: 2009-2822. Frequency: 4 Issues + 1 Hard Copy per year 

Article #1607 - The Long-Run Performance of Born Globals in Computing: The Role of Digital Platforms

IRE Vol 17: Issue 3, 2019

Author(s): Shon Ferguson (Research Institute of Industrial Economics (IFN), Sweden & Swedish University of Agricultural Sciences (SLU), Sweden) and Magnus Henrekson (Research Institute of Industrial Economics (IFN), Sweden)

Abstract:
Using data on all Swedish startups in the computing sector founded 2007–2015, we find
a systematic positive relationship between the propensity of a computing firm to reach customers
globally via digital platforms and its long-run employment growth relative to domestic-oriented
computing firms. We also find positive, yet weaker, evidence that born globals in computing grow
faster in terms of sales or value added. Our analysis also indicates that very few computing firms fit
the profile of born globals; only 15% of the 250 largest computing employers in 2015 were born
globals. Moreover, only 1.5% of computing startups founded 2007–2015 were computer game
publishers, which arguably have the highest propensity to be born global. Thus, although we find
positive born global effects at the firm level, policymakers must be aware that encouraging more
born globals need not necessarily lead to large benefits for the overall economy.