---
title: "The role of business subsidies in job-creation start-ups, gazelles and imcumbents"
authors:
  - name: "Koski, Heli"
    url: "https://www.etla.fi/henkilot/koski-heli/"
    sameAs:
      - "https://twitter.com/heli_koski"
  - name: "Pajarinen, Mika"
    url: "https://www.etla.fi/henkilot/pajarinen-mika/"
    sameAs:
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      - "https://scholar.google.com/citations?user=7sGKgwsAAAAJ"
date_published: "2011-04-08"
series: "Discussion Papers no."
series_number: "1246"
jel_codes:
  - "J23"
  - "L10"
  - "O33"
language: "en"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/2012/09/dp1246.pdf"
keywords:
  - "public subsidies"
  - "technology policy"
  - "growth"
  - "Finland"
identifier: "https://www.etla.fi/julkaisut/id/Discussion-Papers-no.-1246"
---

# The role of business subsidies in job-creation start-ups, gazelles and imcumbents

**Published:** 2011-04-08  
**Categories:** Publikationer  
**Tags:** Diskussionsämnen, Suomi  
**URL:** https://www.etla.fi/sv/publikationer/dp1246-en/

Our data concerning the whole Finnish company population from the years 2003-2008 suggest that the impacts of business subsidies on employment growth differ more between high-growth start-ups and other firms than between start-ups and over five years old incumbents. All subsidies seem to relate positively to the contemporary employment growth both among start-ups and incumbents. Furthermore, our data show that both the employment of start-ups and older incumbents receiving employment or other subsidies grow more than that of non-subsidized firms after subsidy reception. Instead, we find that business subsidies do not provide significant further boost for the contemporary or after-subsidy growth of gazelles. There are apparently some other factors dominating the growth of young high-growth firms making them to grow strongly, in many cases, with or without subsidies.

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