Raising the batting average: Re-orientating regional industrial policy to generate more high growth firms

High growth firms play a disproportionate role in contributing to the economic vitality of regional economies. These are precisely the types of businesses that policy makers need to support in order to generate economic growth. Despite this, the article argues that current regional industrial and enterprise promotion policies in the UK are poorly equipped to help firms grow rapidly. This argument is developed by means of a critical examination of innovation support policies in Scotland. Indeed, many governments use such policies as a surrogate form of high growth firm policy. The article discusses the underlying principles and types of support which are needed to help foster and support rapidly growing firms. It argues that effective policy needs to be targeted, selective and customized to the specialist needs of high growth firms. The implementation of these types of policies is best delivered at a sub-national or regional level.