CMA publishes major research report on high-growth firms, examining how scale-ups emerge and what policy interventions can support sustained UK economic growth
The Competition and Markets Authority (CMA) published on 27 August 2026 a substantial research report, 'High-growth firms', produced by its Microeconomics Unit as part of the CMA's ongoing Growth Programme. The 123-page report examines how rapidly growing businesses, commonly called scale-ups, emerge, grow, and sustain success, with the stated aim of informing effective policy interventions as the government's modern Industrial Strategy takes on increasing prominence. The report's analysis covers four main areas. First, it tests how different definitions of high-growth firms (using revenue growth, employment growth, or hybrid measures) affect which businesses are identified as fast-growing, noting that the choice of definition has direct implications for how policymakers design support mechanisms. Second, it examines the trajectories and persistence of growth episodes, exploring what happens to firms after an initial high-growth period. Third, using experimental financial transactions data, it analyses how the supply networks and revenue patterns of scale-ups differ from the broader business population. Fourth, it tests whether web-based signals, such as firms' public announcements, can complement traditional approaches to identifying fast-growing businesses. The report connects to the CMA's broader advisory role on competition and growth, including work with the Ministry of Defence on how increased defence spending can support competition and dynamism in the defence sector, and recommendations from its civil engineering market study on regulatory and procurement reforms to encourage challenger firm entry. The report builds on the CMA's earlier literature review on investment and competition over the business lifecycle and on prior work by the ScaleUp Institute.
Why this matters
The CMA's publication of detailed microeconomic research on scale-ups signals a broadening of the regulator's self-conceived role: rather than acting purely as a merger control and competition enforcement body, the CMA is positioning itself as an active contributor to the UK's industrial strategy and growth agenda. This matters because it creates a policy foundation for future CMA interventions that could favour challenger firms and new entrants, including in markets where incumbent dominance has historically gone unchallenged. For firms advising technology companies, venture-backed businesses, and private equity-backed growth companies, the report's findings on supply chain networks, financing patterns, and the predictors of sustained growth may feed into future market studies or merger thresholds. The connection to the Industrial Strategy Green Paper and the ScaleUp Institute's prior work suggests the CMA's research will be used by multiple government departments, broadening its regulatory reach.
On the Ground
The immediate legal work generated is primarily regulatory advisory: competition law teams will analyse the report's framing of high-growth firms to anticipate how the CMA might adjust its approach to merger control thresholds or market studies affecting scale-up sectors. Clients in technology, healthcare, and professional services who are in or approaching a high-growth phase will want advice on how the CMA's evolving policy stance affects their M&A optionality and competitive strategies. No specific law firm advisers are named in the sources. A trainee would prepare a compliance gap analysis memo summarising the report's key definitions and policy recommendations, and draft a regulatory impact assessment setting out how the CMA's findings might affect a client's sector.
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