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on Entrepreneurship |
| By: | E. Mark Curtis; Ryan Decker |
| Abstract: | Entrepreneurship plays a vital role in the economy, yet there exists little well-identified research into the effects of taxes on startup activity. Using recently developed county-level data on startups, we examine the effect of states' corporate, personal and sales tax rates on new firm activity and test for cross-border spillovers in response to these policies. We find that new firm employment is negatively—and disproportionately—affected by corporate tax rates. We find little evidence of an effect of personal and sales taxes on entrepreneurial outcomes. Our results are robust to changes in the tax base and other state-level policies. |
| Keywords: | Labor supply and demand ; Entrepreneurship ; Firm dynamics ; Taxation |
| JEL: | L26 D22 H71 H25 J23 |
| Date: | 2018–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2018-03&r=ent |
| By: | Yaniv Yedid-Levi (The University of British Columbia); Stefanie Haller (University College Dublin); Doireann Fitzgerald (Federal Reserve Bank of Minneapolis) |
| Abstract: | We document a new set of facts about firm dynamics, separating true dynamics from the appearance of dynamics driven by selection. Conditional on survival, total revenue and the number of markets a firm participates in grow with age. However TFP grows very slowly. Meanwhile, there is no statistically significant relationship between prices and age. We use these facts to motivate a model of firm dynamics, where firms differ in their efficiency, and face frictions in entering and expanding sales in markets. This allows us to address the following question: Do successful firms grow because they produce more efficiently, or because they sell more at a given level of efficiency? |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed017:1294&r=ent |
| By: | Grimpe, Christoph; Murmann, Martin; Sofka, Wolfgang |
| Abstract: | We investigate whether appointing a middle management level affects startups' innovation performance. Additional hierarchical levels are often suspected to restrict innovative activities. However, founders' capacities for information processing and resource allocation are usually strongly limited while, at the same time, R&D decisions are among the most consequential choices of startups. We argue that middle management is positively related to introducing product innovations because it improves the success rates from recombining existing knowledge as well as managing R&D personnel. In addition, we suggest that the effectiveness of these mechanisms depends on the riskiness of a startup's business opportunity. Based on a sample of German high-tech startups, we find support for our conjectures. |
| Keywords: | middle management,innovation performance,R&D,startups,organizational design,R&D management |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:17074&r=ent |
| By: | Maria Adelaida Lopera; Steeve Marchand |
| Abstract: | We study how social interactions influence entrepreneurs' attitudes toward risk. We conduct two risk-taking experiments within workshops organized for young Ugandan entrepreneurs. Between the two experiments, the entrepreneurs participate in a networking activity where they build relationships and discuss with each other. We collect detailed data on peer network formation and on participants' choices before and after the networking activity. Our design implicitly controls for homophily effects (i.e. the tendency of individuals to develop relationships with people who have similar characteristics). We find that risk aversion is affected by social conformity. Participants tend to become more (less) risk averse in the second experiment if the peers they discuss with are on average more (less) risk averse in the first experiment. This suggests that social interactions play a role in shaping risk preferences. |
| Keywords: | Preference, Risk aversion, Entrepreneur, Social norms |
| JEL: | D03 D81 M13 Z13 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:piercr:2017-21&r=ent |
| By: | Patrick Grüning (Bank of Lithuania & Faculty of Economics, Vilnius University) |
| Abstract: | Empirical evidence suggests that investments in research and development (R&D) by older and larger firms are more spread out internationally than R&D investments by younger and smaller firms. In this paper, I explore the quantitative implications of this type of heterogeneity by assuming that incumbents, i.e. current monopolists engaging in incremental innovation, have a higher degree of internationalization in their R&D technologies than entrants, i.e. new firms engaging in radical innovation, in a two-country endogenous growth general equilibrium model. In particular, this assumption allows the model to break the perfect correlation between incumbents’ and entrants’ innovation probabilities and to match the empirical counterpart exactly. |
| Keywords: | Heterogeneous innovation, Technology spillover, Endogenous growth, Creative destruction, International finance |
| JEL: | E22 F31 G12 O30 O41 |
| Date: | 2017–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:lie:opaper:16&r=ent |
| By: | Antonio VEZZANI (European Commission - JRC); Marco BACCAN (Finlombarda S.p.A. (Italy)); Alina CANDU (Finlombarda S.p.A. (Italy)); CASTELLI (Finlombarda S.p.A. (Italy)); Mafini DOSSO (European Commission - JRC); Petros GKOTSIS (European Commission - JRC) |
| Abstract: | This study offers a novel analytical approach to inform the regional search for new industrial opportunities, as promoted by smart specialisation in the EU Cohesion policy context. The analysis departs from the challenges of practicing smart specialisation and its entrepreneurial discovery process in a dynamic perspective. It argues that the adoption of a dynamic approach to identify new opportunities implies mapping regional business and innovation assets as well as, assessing their position within the global technological and industrial landscape. The study brings a case study of Lombardy region, spurring the S3 Lab initiative (in collaboration with Baden-Württemberg, Catalonia and Lapland), together with a comparative analysis of its technological profile. The empirical study combines patent data from OECD REGPAT and territorial proprietary micro-data from Lombardy region on firm creation in emerging industries (EI) – new industrial sectors or existing sectors evolving into new industries (European Cluster Observatory). These industries represent a priority area for Lombardy's innovation-led development strategy. The initial observations confirm the importance of such industries in the region; they represent more than one-third of employment, almost a half of the regional value-added and feature together the majority of start-ups, suggesting the relevance of the regional strategic development choices. Also, in terms of productive advantages, Lombardy ranks high in some key EI. The mapping of technological competences through patent indicators, e.g. specialisation, diversification and ability to specialise in fast-growing and niche fields gives relevant insights on the technological potential of the region, providing further guidance for better targeted interventions. |
| Keywords: | smart specialisation, emerging industries, regional search, technological specialisation |
| JEL: | O25 O33 O38 R58 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc108247&r=ent |
| By: | Yurong Chen (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); Yannick Perez (UP11 - Université Paris-Sud - Paris 11) |
| Abstract: | Electric vehicle (EV) industry is still in the introduction stage in product life cycle, and dominant design remains unclear. EV companies, both incumbent from the car industry and new comers, have long taken numerous endeavors to promote EV in the niche market by providing innovative products and business models. While most carmakers still take 'business as usual' approach for developing their EV production and offers, Tesla Motors, an EV entrepreneurial firm, stands out by providing disruptive innovation solutions. We review the business model approach in the literature, then classify the innovation dimensions in the EV ecosystem. We study Tesla Motors in terms of: (i) innovation related to the vehicle, (ii) innovation related to the battery (iii) innovation concerning the recharging system, and (iv) innovation toward the EV ecosystem. Lessons for incumbent carmakers for their EV business model design: Tesla Motors 1) holds a product strategy entering from high-end market and moving to mass market, with a high level of innovation adaptation and learning by doing; 2) pays considerable attention to reduce range anxiety by high performance supercharger station network and high capacity battery; 3) shows a very high level of integration of information technology into many aspects of the EV business model, such as advanced in-car services and digital distribute channel; 4) shows a new value configuration which involving in high level of vertical integration towards battery and recharging network. All these lessons of this chapter would be worth the attention of the carmakers if the disruptive choices of Tesla succeed in challenging the dominant design. |
| Keywords: | Innovation Management,Business Model,Electric Vehicle,Tesla Motors |
| Date: | 2017–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01655959&r=ent |
| By: | Masahiro Kotosaka (FFJ - Fondation France-Japon de l'EHESS - EHESS - École des hautes études en sciences sociales); Mari Sako (FFJ - Fondation France-Japon de l'EHESS - EHESS - École des hautes études en sciences sociales) |
| Abstract: | This paper uses the notion of institutional logics to advance our understanding of institutional change in the ICT start-up eco-system in Japan. We chose to study ICT start-ups because the rates of entry, growth, and exit are faster in this sector than in others, making it easier to observe institutional change. Our study, based on data from interviews, closed master classes and document analysis, is presented in three steps. First, we describe the two logics that coexist in the ICT start-up eco-system, namely Corporate Logic and Venture Logic, and practices under each logic in three arenas, namely the capital market, the labor market, and social networks. Second, we identify several factors that enabled the emergence of Venture Logic during the period since the mid-1990s. Third, looking into the future, we discuss the reasons why we predict that the two logics are likely to co-exist in this field, resulting in organizational heterogeneity. |
| Keywords: | corporate logic, venture logic, ICT, eco-system, labor market, capital market |
| Date: | 2016–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01652306&r=ent |
| By: | Adel Ben Youssef (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Sabri Boubaker (Champagne School of Management groupe ESC Troyes - Champagne School of Management groupe ESC Troyes); Anis Omri (FSEGN - Faculté des Sciences Economique et de gestion de Nabeul - Faculté des Sciences Economique et de gestion de Nabeul) |
| Abstract: | The relationship between entrepreneurship and sustainable development has received considerable attention from academics and policymakers, as society searches for solutions leading to sustainability. The role of innovation and institutional quality in reaching sustainability goals is one of the key areas tackled by the current sustainable development debate, particularly in developing countries. Using a modified environmental Kuznets curve model, this study attempts to better improve our understanding of the critical roles of innovation, institutional quality, and entrepreneurship in the structural change toward a sustainable future in Africa. The empirical results show that both formal and informal entrepreneurship are conducive to less environmental quality and sustainability in 17 African countries where the contribution of informal entrepreneurship is much higher compared to the formal one. However, the relationship between entrepreneurship and sustainable development becomes strongly positive when the levels of innovation and institutional quality are higher. This research makes a contribution to this important emerging research area in that it clarifies conditions through which countries and firms in Africa can move toward more sustainable products and services. Formalizing the informal sector can lead to the improvement of the environmental and economic performance. |
| Keywords: | Innovation,Institutions quality 2,Entrepreneurship,Sustainability |
| Date: | 2017–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01653946&r=ent |
| By: | Butler, Ines; Giuliodori, David; Guiñazu, Sebastian; Martinez Correa, Julian; Rodríguez, Alejandro |
| Abstract: | In the last years, Argentinian’s Government has implemented several productive programs for financing MSMEs. The main objective of these programs was increasing the productivity of firms. However, to the best of our knowledge, there is no work that measures the effectiveness of programs over the beneficiary firms; moreover, the micro data used in this work have not been used ever. In this paper, we evaluate three productive programs: the National Development Fund for Micro, Small and Medium Enterprises (FONAPYME), the Rate Bonus Regime (RBT) and the Reciprocal Guarantee Societies (SGR). On the base of administrative micro data and combining statistical matching techniques with the fixed effects model, we estimate the causal effect of the programs over different variables associated with firm’s productivity. Results show that programs have, on average, positive and significant effects over average employment, average salary, probability of access to credit, and the volume of financial debt. The impact comes mainly from young companies, and specifically in employment, from smaller companies. When comparing the programs, it seems that the RBT rate subsidy is the one with the most profound effects on the overall performance of the firms. |
| Keywords: | Competitiveness, impact evaluation, employment, firms, fixed effects, productive development policies, propensity score matching. |
| JEL: | D0 H8 J2 J23 |
| Date: | 2017–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:83524&r=ent |