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Instituto Valenciano de Investigaciones Económicas

Research Areas

IvieLAB. Valencian firm productivity: The importance of size
IvieLAB. Valencian firm productivity: The importance of size
Project start date: 2019
Project end date: 2019
Funding institution: Generalitat Valenciana

Both the Valencian and Spanish economies are characterized by a high percentage of small firms compared to other countries. This report aims to study the relationship between firm size and productivity in the Valencian Community.  It is based on a usual approach that describes the Valencian firm structure by size, comparing it with that of Spanish firms. In addition, it offers in-depth information on the Valencian productive fabric by providing a broader classification of firms, distinguishing among firms that grow rapidly (gazelles), large firms that do not grow rapidly (elephants), small firms that tend to stay small (mice), start-ups, etc. From this taxonomy two analyses will be carried out. First, the relationship between productivity and size, addressing the determinants of productivity, the percentage of companies according to their size versus leading firms in sector, the relationship between size and ICT intensity and the importance of restrictions on access to funding based on the size of the company. Second, the determinants and barriers to business growth will be considered.