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on Entrepreneurship |
| By: | Faggian, Alessandra; Partridge, Mark; Malecki, Ed |
| Abstract: | Researchers have long searched for the underlying causes of growth. In developed countries, as they shifted from industrial to knowledge economies, researchers have recently stressed the following sources of growth embodied in its workforce: human capital (linked to education), entrepreneurship (variously measured), and the creative class (associated with worker occupations). This study first proposes new conceptual ways to portray the interrelationship of these knowledge-based attributes. Then simultaneously considers all of these factors in an empirical model using U.S. counties. We find that human capital as measured by educational attainment and the intensity of small and medium-sized firms are statistically associated with subsequent growth, while other factors such as the share of creative class workers or the share of advanced technology industries are insignificant. We conclude that economic development strategies are too focused on attracting large outside firms and attracting advanced technology firms and not enough attention is given to building a foundation of competitive small and medium-sized firms. |
| Keywords: | Economic growth, human capital, entrepreneurship, creative class, US counties |
| JEL: | J24 O1 R11 |
| Date: | 2016–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:71445&r=ent |
| By: | Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Nabavi, Pardis (Swedish Entrepreneurship Forum & Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology (KTH)) |
| Abstract: | This paper investigates how incumbent firm characteristics affect the viability of its spinoffs. The survival patterns of spinoffs with roots in exporting firms and in technologically innovative firms are compared to the survival of other spinoffs. Using comprehensive Swedish employer-employee panel data sets, three possible outcomes are identified: survival,acquisition and complete exit from the market. Experience from an exporting parent is positively associated with spinoff survival. These inheritance benefits do, however, decrease with the tenure of ex-employees. This suggests that inherited advantages in this case is not primarily driven by enhanced opportunities for on-the-job learning. Above-average attractiveness to employees, and associated ability sorting and opportunity costs mechanisms, provides explanations for the superior survival of spin-offs from exporting firms that seem more congruent with data. The study also suggest that technological innovativeness, captured by parent's patenting activity, is negatively associated with spinoff survival when controlling for exports. This result support the view that knowledge inside innovative firms is "sticky" and not easily transferable to new ventures by ex-employees. |
| Keywords: | entrepreneurship; exports; organizational heritage; innovation; spinoff; entrepreneurial spawning |
| JEL: | C25 F14 L26 M13 O33 |
| Date: | 2016–04–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0437&r=ent |
| By: | Beatriz Muriel (Institute for Advanced Development Studies); Marcelo Gutiérrez (Institute for Advanced Development Studies) |
| Abstract: | We developed a game, in the line of experimental economics, using an expected utility framework, applied to 108 participants. Specifically, we evaluated the hypothesis that, facing uncertainty over potential employees’ skills, employers prefer a flexible labour policy rather than a protectionist one, and when the option of flexible labour contracts is not available, they choose not to undertake a business, reducing job creation. The empirical results show that 79.3% of participants prefer a flexible labour policy, as well as that when this option is excluded, some participants abstain from business undertakings - reducing job creation -, and instead become workers. |
| Keywords: | Experimental economics, risk aversion, expected utility theory, employment, labour protection, labour flexibility |
| JEL: | C91 D81 J89 |
| URL: | http://d.repec.org/n?u=RePEc:adv:wpaper:201512&r=ent |
| By: | Joachim Merz; Tim Rathjen (LEUPHANA University Lüneburg,Department of Economic, Behaviour and Law Sciences, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB))) |
| Abstract: | Entrepreneurs and freelancers, the self-employed, commonly are characterized as not only to be relatively rich in income but also as to be rich in time because of their time-sovereignty in principle. Our introducing study scrutinises these results and notions about the well-being situation of self-employed persons not only by asking about traditional single income poverty but also by considering time poverty within the framework of a new interdependent multidimensional (IMD) poverty concept. The German Socio-economic panel with satisfaction data serves as the data base for the population wide evaluation of the substitution/compensation between genuine, personal leisure time and income. The available detailed Time Use Surveys of 1991/92 and 2001/2 of the Federal Statistics Office provide the data to quantify the multidimensional poverty in all the IMD poverty regimes. Important result: self-employed with regard to single income poverty, single time poverty and interdependent multidimensional time and income poverty in both years are much more affected by time and income poverty than all other active persons defining the working poor. A significant proportion of non-income-poor but time poor of the active population are not able to compensate their time deficit even by an above poverty income. These people are neglected so far within the poverty and well-being discussion, the discussion about the “working poor” and in the discussion about time squeeze and time pressure in general and in particular for the self-employed as entrepreneurs and freelancers. |
| Keywords: | Liberal professions (Freie Berufe), entrepreneurs, self-employed, interdependent multidimensional time and income poverty, time and income substitution, extended economic well-being, satisfaction/happiness, CES welfare function estimation, working poor, German Socio-Economic Panel, German Time Use Surveys 1991/02 and 2001/02 |
| JEL: | D31 D13 J22 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:leu:wpaper:102&r=ent |
| By: | Kerr, William R.; Nanda, Ramana |
| Abstract: | We review the recent literature on the financing of innovation, inclusive of large companies and new startups. This research strand has been very active over the past five years, generating important new findings, questioning some long-held beliefs, and creating its own puzzles. Our review outlines the growing body of work that documents a role for debt financing related to innovation. We highlight the new literature on learning and experimentation across multi-stage innovation projects and how this impacts optimal financing design. We further highlight the strong interaction between financing choices for innovation and changing external conditions, especially reduced experimentation costs. |
| Keywords: | finance, innovation, entrepreneurship, banks, venture capital, experimentation |
| JEL: | G21 G24 L26 M13 O31 O32 |
| Date: | 2015–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:2015_028&r=ent |
| By: | Carlino, Gerald; Kerr, William R. |
| Abstract: | This paper reviews academic research on the connections between agglomeration and innovation. We first describe the conceptual distinctions between invention and innovation. We then discuss how these factors are frequently measured in the data and note some resulting empirical regularities. Innovative activity tends to be more concentrated than industrial activity, and we discuss important findings from the literature about why this is so. We highlight the traits of cities (e.g., size, industrial diversity) that theoretical and empirical work link to innovation, and we discuss factors that help sustain these features (e.g., the localization of entrepreneurial finance). |
| Keywords: | agglomeration, clusters, innovation, invention, entrepreneurship |
| JEL: | J2 J6 L1 L2 L6 O3 R1 R3 |
| Date: | 2015–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:2015_027&r=ent |
| By: | Gimenez-Nadal, J. Ignacio (University of Zaragoza); Lafuente, Miguel (University of Zaragoza); Molina, José Alberto (University of Zaragoza); Velilla, Jorge (University of Zaragoza) |
| Abstract: | In this paper, we propose an algorithmic approach based on resampling and bootstrap techniques to measuring the importance of a variable, or a set of variables, in econometric models. This algorithmic approach allows us to check the real weight of a variable in a model, avoiding the biases of classical tests, and to select the more powerful variables, or more relevant models, in terms of predictability, reducing dimensions. We apply this methodology to the Global Entrepreneurship Monitor data for the year 2014, and find that innovation and new technologies, help others with their business, and that entrepreneurial education at University and the availability of government subsidies, are among the most important predictors for entrepreneurial behavior. |
| Keywords: | bootstrap, regression, classification, entrepreneurship data |
| JEL: | C21 C52 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9938&r=ent |
| By: | Gourio, Francois; Messer, Todd; Siemer, Michael |
| Abstract: | Using an annual panel of US states over the period 1982-2014, we estimate the response of macroeconomic variables to a shock to the number of new firms (startups). We find that these shocks have significant effects that persist for many years on real GDP, productivity, and population. This result is consistent with simple models of firm dynamics where a “missing generation” of firms affects productivity persistently. |
| Keywords: | Productivity ; Business dynamics ; Employment ; Firm entry ; Missing generation ; New business formation |
| JEL: | E24 E32 L25 L26 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2016-43&r=ent |