LAUSR

An increasing number of theoretical and empirical analyses address the role of innovation as one of the main sources of firm growth. More recently, studies have looked at the role of gender diversity as a possible determinant of innovation and entrepreneurial performance. However, the relationship between gender and employment growth—a dimension of entrepreneurial performance—still remains unexplored to a large degree. This paper contributes to the empirical literature on gender and entrepreneurial performance in several ways. First, it examines the role played by both innovation and gender ownership as determinants of employment growth rates of young, knowledge-intensive entrepreneurial (KIE) firms. Second, it investigates the indirect impact of contributing factors—such as the characteristics of the market, knowledge-based capital, and human capital—on employment growth. And third, it relies on a rich new cross-sectional data set on young, KIE firms across European Union (EU) countries. The data set contains information not only on the gender of the firm’s founders but also on the market environment, business strategy, and innovative and economic performance of firms.