This study analyses persistence in growth rates of the entire population of Dutch
manufacturing firms. Previous literature on firm growth rates shows that extreme
growth events are likely to be negatively correlated over time. A rebound effect
following an extreme growth event questions the existence of persistent
outperformers, indicated by a positive correlation over time. By supplementing the
quantile regression analyses with transition probability matrices, our study shows
that ‘bouncing’ firms co-exist with persistent outperformers. This result is robust if
we exclude firms involved in acquisitions or spin offs. Differentiating among different
size classes, we find that the existence of persistent outperformers is especially
pronounced in micro firms. We interpret this finding as supporting the notion of a
Schumpeter Mark I regime, with small firms displaying strong heterogeneity in their
growth patterns, versus a Schumpeter Mark II regime, with large firms displaying
less heterogeneity of growth
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