How to Analyse Firm Dynamics in European Countries? Methodology and Results of a Comparative Study

The present paper is the result of a comprehensive comparative study on firm population and the dynamics of market structure which was performed in eight European countries in 2007. The aim of the study is to shed a light on the comparability of national firm-level micro data regarding the dynamics of market structure, with respect to both firms and employment. Within the study, a common methodology with guidelines for the preparation of national data has been developed before merging aggregate micro-level data into a unique dataset. The contribution at hand mainly consists of two parts: firstly, the process of collecting harmonised aggregate data resulting from firm-level micro data in the participating countries is critically described; in the second part this cross-country dataset is being analysed. It can be shown that viable comparison between countries is possible, though data has to be handled with care and does not allow for in-depth comparisons. Various aspects of entry, exit and survival are outlined across countries and in sectoral and temporal differentiation