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on Entrepreneurship |
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Issue of 2006‒08‒12
seven papers chosen by Marcus Dejardin Facultes Universitaires Notre-Dame de la Paix |
| By: | Simon Grant (Department of Economics, Rice University); John Quiggin (Department of Economics, University of Queensland) |
| Abstract: | We formulate a dynamic framework for an individual decision-maker within which discovery of previously unconsidered propositions is possible. Using a standard game-theoretic representation of the state space as a tree structure generated by the actions of agents (including acts of nature), we show how unawareness of propositions can be represented by a coarsening of the state space. Furthermore we develop a semantics rich enough to describe the individual's awareness that currently undiscovered propositions may be discovered in the future. Introducing probability concepts, we derive a representation of ambiguity in terms of multiple priors, reflecting implicit beliefs about undiscovered proposition, and derive conditions for the special case in which standard Bayesian learning may be applied to a subset of unambiguous propositions. Finally, we consider exploration strategies appropriate to the context of discovery, comparing and contrasting them with learning strategies appropriate to the context of justification, and sketch applications to scientific research and entrepreneurship. |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:rsm:riskun:r05_7&r=ent |
| By: | Heshmati, Almas (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Lööf, Hans (http://www.infra.kth.se/cesis/cesis/index2.htm) |
| Abstract: | The purpose of this paper is to provide empirical analysis of the two-way causal relationship between some important investment and performance indicators at the firm level, in particular controlling for differences in these relationships between two cohorts of small and middle-sized firms and large firms respectively. Investigated performance variables include sales, value added, profit, cash flow, capital structure and employment. A multivariate vector autoregressive approach is applied to a panel of Swedish firms observed between 1992 and 2000. In particular, an attempt is made to investigate whether causal relationships between R&D and firm performance are of a transitory nature and whether the causal relationships are similar for small and medium-sized and large firms. Results show evidence of some two way causal relationships, which are mainly transitory in character. Significant heterogeneity is observed in the firms’ investment and performance behavior by their size. |
| Keywords: | R&D investment; productivity growth; financial constraints; panel data |
| JEL: | C23 C33 G32 L19 O33 |
| Date: | 2006–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0072&r=ent |
| By: | E. Echeverri-Carroll; L. Hunnicutt |
| Abstract: | Competition in high technology is increasingly based on rapid innovation. But what conditions quicken innovation? Some suggest innovation is faster in firms with many related organizations located nearby. Others propose relationships with customers and suppliers as key factors in rapid innovation. We attempt to differentiate between these hypotheses. We find that local amenities determine firm location, but not innovation speed. Instead relationships with suppliers and customers are the main determinants of innovation speed. |
| URL: | http://d.repec.org/n?u=RePEc:usu:wpaper:2000-33&r=ent |
| By: | Yuliya Demyanyk |
| Keywords: | Bank supervision ; Banks and banking |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlsp:2006-01&r=ent |
| By: | Andrés Fuentes; Eckhard Wurzel; Andreas Reindl |
| Abstract: | Much scope remains to make regulation of product markets more conducive to competition ? notwithstanding progress in recent years ? with substantial benefits for consumer welfare, productivity and employment. While the general competition legislation and enforcement framework is mostly effective, measures need to be taken to reduce administrative burdens on entrepreneurship and reduce the involvement of the government in business sector activities, notably through accelerated privatisation. Policies favouring small enterprises need to be revised, with a view to fully exposing them to competition and avoiding disincentives for small firms to grow. Substantial regulatory challenges exist in specific sectors, notably in the energy and railway industries where non-discriminatory access of market entrants to networks needs to be improved. Environmental objectives in energy market regulation could be achieved at lower cost. In the telecommunications industry, competition in the local loop can be strengthened. Regulation of the liberal professions is among the most restrictive in the OECD. Entry barriers need to be eliminated in crafts. and restrictions on large-scale retailing development could be eased. This paper relates to the 2006 Economic Survey of Germany (www.oecd.org/eco/surveys/germany). <P>Améliorer la performance économique en stimulant la concurrence sur les marchés de produits en Allemagne <BR>En dépit des progrès accomplis ces dernières années, beaucoup reste à faire pour rendre la réglementation des marchés de produits plus propice à la concurrence, ce qui induira de substantiels avantages en termes de bien-être du consommateur, de productivité et d'emploi. Le droit commun de la concurrence et son cadre d'application sont dans l'ensemble efficaces, mais il faut alléger les charges administratives qui pèsent sur l'entrepreneuriat et réduire l'intervention de l'État dans les activités du secteur des entreprises, notamment par une privatisation accélérée. Il convient de réviser les dispositifs favorables aux petites entreprises, pour les exposer pleinement à la concurrence et éviter de les décourager de croître. De sérieux problèmes de réglementation persistent dans certains secteurs, notamment l'énergie et les chemins de fer, où l'accès non discriminatoire des entrants aux réseaux demande à être amélioré. Les objectifs environnementaux de la réglementation des marchés de l'énergie pourraient être réalisés à moindre coût. Dans l'industrie des télécommunications, la concurrence sur la boucle locale peut être renforcée. La réglementation des professions libérales est parmi les plus restrictives de la zone OCDE. Dans le secteur de l'artisanat, les obstacles à l'entrée doivent être supprimés, et il convient d'assouplir les restrictions qui limitent le développement des magasins de grande surface. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de l’Allemagne 2006 (www.oecd.org/eco/etudes/allemagne). |
| Keywords: | network industries, industrie de réseau, competition, privatisation, Germany, Allemagne, concurrence, privatisation, competition law, productivity and growth, droit de la concurrence, productivité et croissance, regulatory policies, politique de réglementation |
| JEL: | K21 K23 L16 L40 L43 L51 L53 O52 Q3 |
| Date: | 2006–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:507-en&r=ent |
| By: | Kyoji Fukao; Young Gak Kim; Hyeog Ug Kwon |
| Abstract: | This study analyzes the cause of the slowdown in Japan's TFP growth during the 1990s. Many preceding studies, examining the issue at the macro- or industry-level, have found that the slowdown was primarily due to the stagnation in TFP growth in the manufacturing sector. Using establishment level panel data covering the entire sector, we investigate the causes of the TFP slowdown and find that the reallocation of resources from less efficient to more efficient firms was very slow and limited. This "low metabolism" seems to be an important reason for the slowdown in Japan's TFP growth. |
| JEL: | O4 O53 |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:hst:hstdps:d06-180&r=ent |
| By: | Sandra Tavares Silva (CEMPRE, Faculdade de Economia do Porto, Universidade do Porto); Aurora A.C. Teixeira (CEMPRE, Faculdade de Economia do Porto, Universidade do Porto) |
| Abstract: | The understanding of the economy's aggregate growth patterns is a fundamental objective of economic growth theorizing. However, the micro constructions are strongly linked to economic growth and so cannot be neglected in such process. This paper is concerned with this problem, proposing a formal mechanism to establish the bridge between macro regularities and micro evolutionary behavior. Within a micro to macro or bottom-up perspective, the adopted approach is focused in the influence of firms’ ‘institutional settings’ on economic growth and in the industry dynamics that lies behind more aggregate behaviors. The analysis associates such settings to firms’ labor choices in terms of hiring/firing policies and to their screening capabilities. Building a computer simulation model which deals with the nature and evolution of the knowledge that guides firms’ efforts to improve their institutional settings, we were able to draw some important implications. The results show that firm’s ability to change its ‘institutional setting’ is crucial for its survival. In a model without a learning mechanism the results show significant turbulence in terms of exit and entry of firms and no significant connection with the firm’s ‘institutional set’. In the LearnModel, the outcome is much more stable, with initial firms surviving for long period of time. Results also suggest that the presence of a learning mechanism is particularly striking in what concerns firms’ behavior and industry’s dynamics. The survival probability depends on firms’ hiring efficiency and on their ability to react to environmental changes. Since firms’ hiring efficiency and their learning rates depend on their accumulated non-routine workers, the results seem to imply some ‘lock-in’ paths. Firms with initial low values of relative non-routine workers have lower chances of survival. However, firms with initial high values of relative non-routine workers will survive if and only if they rapidly improve their hiring efficiency. |
| Keywords: | evolutionary, industrial dynamics, learning, labor decisions |
| JEL: | D21 D83 L22 M51 |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:227&r=ent |