Grow and Go? Retaining Scale-ups in the Nordic Countries

Scale-ups, i.e. firms that grow fast over a short period of time, significantly contribute to job creation and economic growth. This study uses granular firm, establishment employee data understand how relocations, domestic expansions or foreign acquisitions impact the life cycle scale-ups. Around 95% scale-ups remain in their “home” region 2014-20 period, reflecting importance personal local business networks driving Instead relocating, many create new plants branches different regions serve customers, tap into markets, gain access resources capabilities. Scale-ups relocate expand continue grow. However, relocations can be challenge for talent retention, as they may lead existing employees find other opportunities places. Foreign capital appears support scale-ups’ growth process. Across five Nordic countries, between 6% 20% became owned 2014 2020.