The dynamics of firms, sectors and cities leading the global economy

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There is much discussion about “superstar” firms and “superstar effects” in reaction to the rapid growth of very large global companies. This has been accompanied by a growing body of research examining various aspects and drivers of superstar effects in the economy. Yet questions remain and much of the evidence is still inconclusive as well as incomplete. Our research in this paper aims to fill some of the empirical and data gaps, take a global perspective and examine the issue beyond just firms. We assess the extent to which a superstar effect can be observed in the global economy in three arenas—firms, sectors, and cities—and the dynamics, including churn and changing characteristics, in each of these arenas. We also examine what characteristics, similarities, differences, and linkages can be observed across firms, sectors, and cities and what economic effects and questions this raises for further research. At the same time, we draw some preliminary implications for leaders.