UPDATES March 2017: FGMF
Fast Growing Medium Sized Firms (FGMFs) is dataset with the aim of developing a brand-new data infrastructure as a robust monitoring device covering the economic and technological development of FGMFs as one of the main pillars of the industrial and technological system. The geographical coverage of the database includes 28 European countries plus Israel. More specifically the main criteria for inclusion of firms in the dataset were:
- Firms established in 28 European countries and Israel.
- Firms are medium-sized firms at the beginning of each observation period: 2008, 2009, 2010.
- Firms are fast growth in at least one of the observation periods.
In order to identify medium-sized firms we used the definitions of medium-sized firms developed by EUROSTAT and Entreprise de taille intermédiaire (ETI) as the following:
- EUROSTAT definition of medium-sized firms: Firms with a number of employees between 50 and 249, and either a turnover of not exceeding €50 million or a balance sheet total of not exceeding €43 million.
- Entreprise de taille intermédiaire (ETI): firms with a number of employees between 250 and 4999, and either a turnover of not exceeding €1.5 billion or a balance sheet total of not exceeding €2 billion. A firm that has less than 250 employees but a turnover of more than €50 million and a balance sheet total of more than €43 million is also considered an ETI.
Using the online version of the ORBIS database we collected the information on potential medium-sized firms by including firms that have turnover lower than €1,5 billion or a balance sheet total of less than €2 billion. We set the start of each observation period at 2008, 2009 and 2010. This step led to collection of data on 13,034,346 firms. Finally, after the cleaning process the preliminary list included 8,609, 209 European potential medium-sized firms.
In the next step we extracted the population of medium sized firms by applying number of employee threshold. In order to deal with missing values for the number of employees, we imputed missing values. We modelled the predicted value as a function of firm’s turnover and we used Tobit regression while controlling for several variables. Eventually, according to the employee threshold we defined a medium-sized firm if:
50 < Number of employees < 5000
we applied this threshold for the firms at the beginning of each growth period (2008, 2009 and 2010) in order to assure that only medium-sized firm enter each growth observation period. The final population of medium-sized firms includes 306,278 firms.
In the next step we identified the population of the firms that experienced fast growth rates in 3 different observation periods, 2008-2011, 2009-2012 and 2010-2013. To do so, we applied the definition of fast growing firms developed by OECD/EUROSTAT accordingly:
We calculated the fast-growth indicators using both employment and turnover growth thresholds for each of the three observation periods (2008-2011, 2009-2012 and 2010-2013). The final population of FGMFs consists of 42,369 firms.
We exercised additional data collection to identify business groups. We checked whether the firm was NOT controlled (i.e. independent) by another firm/State in the period 2007-2013. Moreover, in the most recent data collection effort we tried to collect and add accounting information of the population of FGMFs.
Currently we are cleaning data on patents collected by UPEM. Moreover, we are currently collecting additional information on the geographical coordinates (i.e. latitude and longitude), ZIP codes, NUTS (NUTS1, NUTS2 and NUTS3) using alternative data sources in order to improve the coverage of the data collected from ORBIS database in the current version of FGMFs dataset.