It has long been realized that while absolute measures of firm growth lead to a bias towards large firms, relative growth measures lead to a bias towards small firms (Acs et al., 2008; Schreyer, 2000). Due to the wide-spread use of the absolute and relative measures, we use these two measures for all growth indicators in the empirical analysis. We also apply the so- called composite index, ., the combination of employment growth measured in absolute and relative numbers, as growth measurement in order to relate to previous literature (see table 1). To summarize, we use three definitions of.
