Young firms contribute to economic growth significantly and are very active in the innovation and adoption of new technologies. International evidence shows that their performance largely depends on certain characteristics at birth. This paper describes the main traits characterizing young firms in Italy, contrasting those that experience 'high growth' — meaning that they observe a strong increase in revenue in their early years — with those that do not.
High-growth firms contribute significantly more than non-high growth ones to the overall increase in employment in young firms. They are also slightly more prevalent in sectors with high digital intensity, have a greater share of intangible assets, invest more and are more innovative. Their founders are on average younger, have greater entrepreneurial experience and are more willing to relocate, mainly along the South-North axis.
