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on Entrepreneurship |
| By: | Mukerjee, Jinia (Montpellier Business School); Thurik, Roy (Erasmus School of Economics); Verheul, Ingrid (Erasmus University Rotterdam) |
| Abstract: | The temporal dimensions of managerial behavior and their impact on organizational outcomes have garnered increasing attention in the literature. Given the significant role of managers' time perception in shaping a firm's strategic direction, this study contributes by examining the relationship between temporal focus and the entrepreneurial orientation (EO) of solo self-employed workers. Drawing on a Dutch sample of 783 self-employed individuals, we find that both present and future temporal focus positively relate to their EO, and that this relationship is stronger for future focus. Our findings also suggest that these two temporal orientations act as substitutes rather than complements, in determining the EO of self-employed workers. We contend that this outcome may be attributed to the resource limitations typically encountered in solo self-employment. Collectively, our results underscore the critical role of temporal focus in the context of entrepreneurial pursuits. |
| Keywords: | temporal focus, entrepreneurial orientation, solo self-employment |
| JEL: | D22 L26 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17571 |
| By: | Le Moal, Mathieu (Université de Montpellier); Thurik, Roy (Erasmus School of Economics); Torrès, Olivier (Université de Montpellier); Soenen, Guillaume (Université de Montpellier) |
| Abstract: | We analyse the links between daily recovery experiences after work (detachment, relaxation, mastery and control) and mental health (well-being and burnout) based on four surveys of French small business owners. First, comparing our results with those of employees' recovery experiences, we find that small business owners have fewer recovery experiences for all four dimensions. Second, controlling for gender, age, life partner, education level, executive experience, business size, capital ownership and type of entrepreneur, both linear regressions and SEM analysis show that the quality of overall daily recovery experiences increases well-being and reduces burnout. Third, we show that the detachment component is not correlated with well-being, and the mastery component is not correlated with burnout. Relaxation and control are most strongly associated with wellbeing, whereas control has the strongest association with burnout. Many implications (including clinical) are discussed. |
| Keywords: | small business owners, entrepreneurs, daily recovery experiences, well-being, burnout, France |
| JEL: | I12 I31 L26 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17548 |
| By: | Henrekson, Magnus (Research Institute of Industrial Economics); Johansson, Dan (Örebro University) |
| Abstract: | The neo-Schumpeterian growth models, which appeared in the early 1990s, have ostensibly reintroduced the entrepreneur into mainstream growth theory. However, we show that by ignoring genuine uncertainty and by assuming that profits follow an objectively true and ex ante known probability distribution, the entrepreneur is made redundant. Thus, the theory fails to exhaustively explain innovation, the role of ownership competence, profits, the function of financial markets, wealth and income distribution, and, ultimately, economic growth. These shortcomings risk leading to erroneous or overly narrow policy conclusions by overestimating the importance of supporting R&D investments. Rather, the presence of genuine uncertainty forms a fundamental theoretical basis for the importance of new venture creation as a source of innovation-driven growth; entrepreneurs must establish and expand firms to capture the subjectively perceived profit opportunities. Therefore, tax policy is decisive for the commercialization and dissemination of innovations by providing incentives to uncertainty-bearing, not only for entrepreneurs, but also for intrapreneurs and financiers taking an active part in the governance and development of firms based on innovations characterized by genuine uncertainty. Furthermore, taxation can distort the evolutionary selection of innovations and firms, for instance, by taxing owners and firms differently. |
| Keywords: | creative destruction, economic growth, entrepreneur, entrepreneurship policy, innovation, judgment, Knightian uncertainty |
| JEL: | B40 O10 O30 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17577 |
| By: | Mr. Salih Fendoglu; Ms. TengTeng Xu |
| Abstract: | The startup ecosystem in Japan has seen gradual growth, supported by the government’s recent "Startup Development Five-Year Plan" and a significant interest from overseas venture capital. This paper lays out the startup financing ecosystem in Japan, with comparison to international peers, and studies potential drivers of startup financing and their relevance for startups’ performance. The results, based on country-level aggregate analysis, underscore the critical role of firm dynamism and entrepreneurship in supporting capital investment and firm valuations. Further analyses at the firm level suggest that equity funding helps startups innovate, grow, and successfully exit. Moreover, the impact of funding on the likelihood of a successful exit appears to be higher in cultures that seem to reward risk taking. |
| Keywords: | Startups; venture capital; Japan; firm dynamics |
| Date: | 2024–12–06 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/246 |
| By: | Xiaoyang Li |
| Abstract: | Conventional wisdom suggests that after a technological breakthrough, the number of active firms first surges, and then sharply declines, in what is known as a “shakeout”. This paper challenges that notion with new empirical evidence from across the U.S. economy, revealing that shakeouts are the exception, not the rule. I develop a statistical strategy to detect breakthroughs by isolating sustained anomalies in net firm entry rates, offering a robust alternative to narrative-driven approaches that can be applied to all industries. The results of this strategy, which reliably align with well-documented breakthroughs and remain consistent across various validation tests, uncover a novel trend: the number of entry-driven breakthroughs has been declining over time. The variability and frequent absence of shakeouts across breakthrough industries are consistent with breakthroughs primarily occurring in industries with low returns to scale and with modest learning curves, shifting the narrative on the nature of innovation over the past forty years in the U.S. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:24-70 |
| By: | Peter J. Klenow; Huiyu Li |
| Abstract: | Over time and across states in the U.S., the number of firms is more closely tied to overall employment than to output per worker. In many models of firm dynamics, trade, and growth with a free entry condition, these facts imply that the costs of creating a new firm increase sharply with productivity growth. This increase in entry costs can stem from the rising cost of labor used in entry and weak or negative knowledge spillovers from prior entry. Our findings suggest that productivity-enhancing policies will not induce firm entry, thereby limiting the total impact of such policies on welfare. |
| JEL: | E23 O47 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:24-63 |
| By: | Sermet Pekin; Aykut Sengul |
| Abstract: | This study aims to classify high-growth firms using several machine learning algorithms, including K-Nearest Neighbors, Logistic Regression with L1 (Lasso) and L2 (Ridge) Regularization, XGBoost, Gradient Descent, Naive Bayes and Random Forest. Leveraging a dataset composed of financial metrics and firm characteristics between 2009 and 2022 with 1, 318, 799 unique firms (averaging 554, 178 annually), we evaluate the performance of each model using metrics such as MCC, ROC AUC, accuracy, precision, recall and F1-score. In our study, ROC AUC values ranged from 0.53 to 0.87 for employee-high growth and from 0.53 to 0.91 for turnover-high growth, depending on the method used. Our findings indicate that XGBoost achieves the highest performance, followed by Random Forest and Logistic Regression, demonstrating their effectiveness in distinguishing between high-growth and non-high-growth firms. Conversely, KNN and Naive Bayes yield lower accuracy. Furthermore, our findings reveal that growth opportunity emerges as the most significant factor in our study. This research contributes valuable insights in identifying high-growth firms and underscores the potential of machine learning in economic prediction. |
| Keywords: | High-growth firms, Machine learning, Prediction, Firm dynamics |
| JEL: | C40 C55 C60 C81 L25 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tcb:wpaper:2413 |
| By: | J. David Brown; Steven J. Davis; Lucia Foster; John Haltiwanger; John Sabelhaus |
| Abstract: | The Census Bureau’s Longitudinal Business Database (LBD) underpins many studies of firm-level behavior. It tracks longitudinally all employers in the nonfarm private sector but lacks information about business financing and owner characteristics. We address this shortcoming by linking LBD observations to firm-level data drawn from several large Census Bureau surveys. The resulting Longitudinal Employer, Owner, and Financing (LEOF) database contains more than 3 million observations at the firm-year level with information about start-up financing, current financing, owner demographics, ownership structure, profitability, and owner aspirations – all linked to annual firm-level employment data since the firm hired its first employee. Using the LEOF database, we document trends in owner demographics and financing patterns and investigate how these business characteristics relate to firm-level employment outcomes. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:24-73 |
| By: | Giovanazzi, Carmen |
| Abstract: | We analyze the dynamics of mergers and acquisitions (M&A) in the United States (US) and Germany in the 2000s, drawing on the Varieties of Capitalism (VoC) framework and the concept of internal capitalist diversity. Using SDC Platinum transaction data from 2000 to 2023 and qualitative insights from semi-structured interviews with 28 M&A professionals, we investigate how firm characteristics and institutional frameworks drive M&A activity in both countries. We confirm VoC-based expectations regarding transaction volumes and industry patterns but also highlight the professionalization of M&A functions across large, listed firms, alongside an increasing role of financial acquirers in both markets. While the rise of private equity aligns with the exit-driven strategies of small and medium-sized enterprises (SMEs) in the US, it raises questions regarding family-owned SMEs in Germany, which prioritize continuity and legacy but increasingly face succession challenges. Our findings suggest a continued hybridization of Germany's stakeholder-oriented corporate governance, integrating shareholder-oriented practices beyond large, listed firms. |
| Keywords: | M&A, Varieties of Capitalism, Financialization, Germany, US |
| JEL: | G34 L2 P52 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifsowp:308062 |
| By: | Ruochen Dai (Central University of Finance and Economics); Dilip Mookherjee (Boston University); Kaivan Munshi (Yale University and Toulouse School of Economics); Xiaobo Zhang (Peking University and IFPRI) |
| Abstract: | This research examines the determinants of entrepreneurship in ChinaÕs transition from agriculture to domestic production in the 1990Õs and the subsequent transition to exporting in the 2000Õs. The model that we develop and test to describe these transitions incorporates a productivity enhancing role for community (birth county) networks, which emerge in response to market imperfections at early stages of economic development. Using administrative data covering the universe of registered firms over the 1994-2012 period and the universe of exporters over the 2002-2012 period, we provide causal evidence that these networks of firms were active and were effective at increasing the revenues of their members, both in domestic production and exporting. While this substantially increased the number of domestic producers in the first stage, the incumbent domestic networks created a disincentive to enter exporting in the second stage that dominated the positive effect of the export networks. Our analysis provides a novel characterization of the development process in which community-based networks emerge at each stage to facilitate the occupational mobility of their members, and pre existing networks slow down the growth of the networks that follow. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:cwl:cwldpp:2406r1 |
| By: | Gourene, Grakolet (UNECA); Brixiova Schwidrowski, Zuzana (UNECA); Balcar, Jiří (VSB Technical University Ostrava); Johnson Filipova, Lenka (VSB Technical University Ostrava) |
| Abstract: | Family-owned firms account for majority of small and medium-sized enterprises (SMEs) in Arab countries, but evidence on the impact of this ownership type on access to credit in the region is scarce. Yet the issue is key for understanding barriers to the emergence of dynamic private sector and growth acceleration. Utilizing the World Bank Enterprise Surveys, this paper contributes to closing this knowledge gap by examining the links between family ownership and credit constraints of SMEs in Egypt, Jordan, Morocco, and Tunisia. We found that while family-owned firms have a higher need for credit than nonfamily-owned firms, they are more likely to be discouraged from applying for it. Due to this self-selection out of credit markets, they end up more credit constrained even though their credit application rejection rates are below those of nonfamily firms. Stronger firm governance, formal business strategies and good managerial practices can ease access to credit for family-owned SMEs. |
| Keywords: | family-owned SMEs, access to credit, firm governance, Arab countries |
| JEL: | D22 G21 G32 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17582 |
| By: | Lakemann, Tabea; Beber, Bernd; Lay, Jann; Priebe, Jan |
| Abstract: | In many developing countries, micro, small and medium enterprises (MSMEs) employ more people than any other type of firm, so identifying ways to raise productivity, improve employment conditions and formalize labor in these settings is of prime policy importance. However, due to the small number of workers per firm and the possibly long results chain linking management to employment, few MSME-targeted interventions and evaluations address job-related outcomes directly. We do so in a randomized controlled trial (RCT) of a support program for MSMEs in Côte d'Ivoire that included financial management and human resources (HR) components. Six and eighteen months after the end of the program, we find muted impacts on business practices, access to finance, and firm performance. On the employment side we find sizeable, positive impacts on job quality, driven by the share of employees receiving at least the minimum wage and the share with written contracts. We find no significant effect on the number of staff. Taken together, our results underscore the difficulty of boosting firm performance and creating jobs with a low-intensity intervention on the one hand, and the feasibility and importance of improvements in employment quality in MSMEs in developing countries on the other. |
| Abstract: | In vielen Entwicklungsländern sind in Kleinst-, Klein- und Mittelunternehmen (KKMU) mehr Menschen beschäftigt als in jeder anderen Art von Unternehmen. Daher ist es von großer politischer Bedeutung, Wege zur Steigerung der Produktivität, zur Verbesserung der Beschäftigungsbedingungen und zur Formalisierung der Arbeit in diesem Umfeld zu finden. Aufgrund der geringen Anzahl von Arbeitnehmenden pro Unternehmen und der möglicherweise langen Zusammenhangskette zwischen Management und Beschäftigung befassen sich jedoch nur wenige auf KKMU ausgerichtete Interventionen und Evaluierungen direkt mit arbeitsplatzbezogenen Indikatoren. Wir leisten hier mit einer randomisierten kontrollierten Studie (RCT) eines Unterstützungsprogramms für KKMU in Côte d'Ivoire, das Komponenten des Finanz- und des Personalmanagements umfasst, einen Beitrag. Sechs und achtzehn Monate nach dem Ende des Programms finden wir eingeschränkte Auswirkungen auf Geschäftspraktiken, Zugang zu Finanzmitteln und Unternehmensleistung. Auf der Beschäftigungsseite finden wir beträchtliche, positive Auswirkungen auf die Qualität der Arbeitsplätze, die durch den Anteil der Beschäftigten, die mindestens den Mindestlohn erhalten, und den Anteil mit schriftlichen Verträgen bestimmt werden. Auf die Anzahl der Mitarbeiter haben wir keine signifikanten Auswirkungen festgestellt. Zusammengenommen unterstreichen unsere Ergebnisse einerseits die Schwierigkeit, die Unternehmensleistung zu steigern und Arbeitsplätze mit einer wenig intensiven Intervention zu schaffen, und andererseits die Machbarkeit und Bedeutung von Verbesserungen der Beschäftigungsqualität in KKMU in Entwicklungsländern. |
| Keywords: | MSME support, employment quality, firm performance, randomized controlled trial, Côte d'Ivoire |
| JEL: | O12 L26 M10 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:306824 |
| By: | Giorgio Di Pietro (European Commission - JRC) |
| Abstract: | Reliance on workers from outside the EU to address skills and labour shortages is found to increase with firm size. This suggests that small firm size may be a significant barrier to the recruitment of these workers. Increasing the possibility for micro enterprises and small firms to hire non-EU people is therefore an important challenge for the EU. Our results suggest that compared to older SMEs, younger SMEs are more likely to consider the recruitment of third-country nationals as a solution to labour and skills shortages. Further research is however needed to confirm these findings. SMEs are more likely to rely on third-country nationals to fill low to medium-skilled positions than highly skilled positions. Given the existence of skill shortages in high level occupations in Europe, it is important to investigate what factors make SMEs less likely to consider filling high skilled vacancies with third-country nationals. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139979 |
| By: | Ferrando, Annalisa; Pál, Rozália |
| Abstract: | The availability of internal and external financing sources significantly influences firms' investments and growth. Even profitable firms with ample financing in normal times can be adversely affected by demand and supply shocks such as the COVID-19 pandemic, the energy crisis, or the recent tightening of financing conditions. This paper examines the impact of funding difficulties on firms' investment, performance and growth during normal period and periods of external shocks, using a regression adjustment treatment effect approach. We distinguish between structural barriers to external financing and cyclical deteriorations in financing conditions, while controlling for other major investment barriers. The analysis uses survey data collected from the 1 st to 8 th vintage of the European Investment Survey (EIBIS). Empirical evidence shows that micro and small firms, as well as leading innovators, are particularly vulnerable to deteriorating funding conditions. Results indicate that firms lagging in digitalisation and green investments face more of a structural rather than a cyclical financing issue. Consequently, policy support should be oriented towards these structural financing impediments to ensure a fair and faster transformation. |
| Keywords: | SMEs, investment gap, external funding, internal funding, financing constraints, uncertainty, investment barriers, firm performance, growth, digital and green transition |
| JEL: | C83 D22 G32 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:308041 |
| By: | Adji Fatou Diagne |
| Abstract: | Due to their growth, increasing performance, and significant contributions to the United States economy, women-owned businesses have spurred the interest of policymakers, researchers, and advocacy groups. Using various data products from the Census Bureau’s Business Demographics Program, this study examines how women business ownership changes over time by age. We find that young owners experienced growth in ownership between 2012 and 2020 and that younger employer businesses were mostly owned by women under the age of 35 in 2021. We show that among women aged 45 to 54 and those aged 55 to 64 ownership rates declined 5.5% and 4.8% between 2012 and 2020, implying an acceleration in the drop out of entrepreneurship for mid to late career age groups. We also show that older owners operate most businesses in capital-intensive industries, had more prior businesses, and higher rates of selling their most recently started businesses. Finally, we find that age groups often characterized as childbearing ages found balancing work and family as key drivers of their decision to start a business. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:24-71 |
| By: | Thomas Gaertner; Christoph Lippert; Stefan Konigorski |
| Abstract: | In response to the growing demand for accurate demand forecasts, this research proposes a generalized automated sales forecasting pipeline tailored for small- to medium-sized enterprises (SMEs). Unlike large corporations with dedicated data scientists for sales forecasting, SMEs often lack such resources. To address this, we developed a comprehensive forecasting pipeline that automates time series sales forecasting, encompassing data preparation, model training, and selection based on validation results. The development included two main components: model preselection and the forecasting pipeline. In the first phase, state-of-the-art methods were evaluated on a showcase dataset, leading to the selection of ARIMA, SARIMAX, Holt-Winters Exponential Smoothing, Regression Tree, Dilated Convolutional Neural Networks, and Generalized Additive Models. An ensemble prediction of these models was also included. Long-Short-Term Memory (LSTM) networks were excluded due to suboptimal prediction accuracy, and Facebook Prophet was omitted for compatibility reasons. In the second phase, the proposed forecasting pipeline was tested with SMEs in the food and electric industries, revealing variable model performance across different companies. While one project-based company derived no benefit, others achieved superior forecasts compared to naive estimators. Our findings suggest that no single model is universally superior. Instead, a diverse set of models, when integrated within an automated validation framework, can significantly enhance forecasting accuracy for SMEs. These results emphasize the importance of model diversity and automated validation in addressing the unique needs of each business. This research contributes to the field by providing SMEs access to state-of-the-art sales forecasting tools, enabling data-driven decision-making and improving operational efficiency. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.20420 |
| By: | Andrea Colciago (De Nederlandsche Bank and University of Milano Bicocca); Marco Membretti (University of Pavia) |
| Abstract: | We study the labor market effects of Temporary Barriers to Entry (TBEs). Estimates from a mixed-frequency Bayesian VAR show that TBEs: (i) reduce job creation by new entrants, but boost it for incumbent firms; (ii) persistently increase employment concentration in large firms; (iii) temporarily reduce unemployment, but are recessionary in the long run; and (iv) mainly result from federal regulation. We build a macroeconomic model, featuring firm heterogeneity, endogenous entry and exit, and labor market frictions, which successfully reproduces the VAR evidence. The model shows that TBEs temporarily boost short-run economic activity by favoring existing firms, but are ultimately costly. Policy measures aimed at protecting incumbent firms, even if temporary, entail welfare costs. |
| Keywords: | Job Creation; Reallocation; Unemployment; Heterogeneous firms; BVAR. |
| JEL: | C13 E32 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:pav:demwpp:demwp0222 |
| By: | MARIOTTI Ilaria; SASSO Simone (European Commission - JRC) |
| Abstract: | The European Commission has increasingly highlighted the importance of fostering conditions that support the emergence and flourishing of innovation and entrepreneurship across all regions. The Long-Term Vision for EU’s Rural Areas recognises the key role that innovation can play in revitalising these territories and transforming them into places of opportunity, while the New European Innovation Agenda emphasises the need to accelerate and strengthen innovation across the EU and thereby address the existing territorial innovation divide. This report, which is part of the Startup Village Forum’s research activities, analyses successful initiatives, supported by public policies or private efforts, which focus on attracting, training or retaining human capital to bolster entrepreneurial and innovation ecosystems in European non-urban areas. The analyzed initiatives - selected for their sustainability, resilience, replicability, inclusivity, cohesiveness, and urban-rural networks - have been promoted by public actors in Ireland (Connected Hubs), Spain (RAISE Youth) and Sweden (Lärcentrum), and by private ones in Portugal (Rural Move) and Italy (Incubatore SEI). They vary widely in terms of their typology, objectives, operational approaches, target groups, services provided, and implementation periods. They leverage urban-rural networks, thus enhancing brain circulation and brain bank. The countries hosting these initiatives present a heterogeneous distribution of tertiary education across cities, towns and suburbs, and rural areas, highlighting a north-south divide. The study shows that all the initiatives have been supported by urban-rural networks and have enhanced the inclusiveness of people coming from outside the area. Additionally, it reveals that key elements for their success, apart from the participation in urban-rural networks, include close collaboration with higher educational institutions, engagement with public institutions, and robust political support across different tiers of government. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138968 |
| By: | Lipari, Francesca; Sartarelli, Marcello |
| Abstract: | Brock and De Haas (2023) study the effect of randomising applicant gender in small business loan applications that are reviewed by loan officers at a Turkish bank in a lab-in-the-field experiment based on real-life applications. The main re- sults are: first, that loan approval rates are not gendered (direct discrimination); second loan officers are 6 percentage point (26%) more likely to condition loan ap- proval to a guarantor when the applicant is a female rather than a male (indirect discrimination). In our computational replication we obtain the manuscript results. In addition, a robustness replication shows that the main results are partly driven by the role of loan types, job seniority and population differences among cities. |
| Keywords: | Gender discrimination, lending, lab experiment, field experiment |
| JEL: | C93 G21 G32 J16 L25 L26 O16 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:i4rdps:185 |
| By: | Fernando Leibovici; David Wiczer |
| Abstract: | This paper studies the role of credit constraints in accounting for the dynamics of firm exit during the Great Recession. We present novel firm-level evidence on the role of credit constraints on exit behavior during the Great Recession. Firms in financial distress, with tighter access to credit, are more likely to default than firms with more access to credit. This difference widened substantially in the Great Recession while, in contrast, default rates did not vary much by size, age, or productivity. We identify conditions under which standard models of firms subject to financial frictions can be consistent with these facts. |
| Keywords: | firm exit; Great Recession; credit constraints; financial distress |
| JEL: | E32 G01 |
| Date: | 2024–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedawp:99194 |
| By: | Eichenauer, Vera; Köppl, Stefan; Köppl-Turyna, Monika |
| Abstract: | In this paper we analyze the effects of investment screening on cross-border venture capital investments in Europe between 2007 and 2022. The data we work with is originally based on PRISM data which has been extended by Eichenauer and Wang and which we combine with deal data from Preqin to assess investment activity. Our results point to unintended negative effects: while the number of actually blocked deals has remained very low, the associated uncertainty and an increase in transaction costs have led to a significant decline in cross-border deals. The effects are stronger in the case of financial (i.e. 'non-strategic') investors, for late-stage venture capital deals, and for deals with investors from non-OECD countries. Moreover, we observe changes in the size of deals and their structure. This has profound policy implications for the financing of innovation in Europe. |
| Abstract: | In dieser Arbeit untersuchen wir die Auswirkungen von Investitionsscreenings auf grenzüberschreitende Venture-Capital-Investitionen in Europa zwischen 2007 und 2022. Die zugrunde liegenden Daten basieren auf den PRISM-Daten, die von Eichenauer und Wang erweitert wurden, und wurden mit Deal-Daten von Preqin kombiniert, um die Investitionstätigkeit zu analysieren. Unsere Ergebnisse zeigen unbeabsichtigte negative Effekte: Obwohl die Zahl tatsächlich blockierter Deals sehr gering bleibt, hat die damit verbundene Unsicherheit sowie die Erhöhung der Transaktionskosten zu einem deutlichen Rückgang grenzüberschreitender Investitionen geführt. Besonders stark sind diese Effekte bei finanziellen (d.h. "nicht-strategischen") Investoren, bei späten Venture-Capital-Deals und bei Investoren aus Nicht-OECD-Ländern. Zudem beobachten wir Veränderungen in der Größe und Struktur der Deals. Diese Ergebnisse haben weitreichende politische Implikationen für die Finanzierung von Innovationen in Europa. |
| Keywords: | cross-border venture capital, investment screening, Europe, transaction costs |
| JEL: | F55 F21 G24 L14 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ecoarp:308092 |
| By: | Röhl, Klaus-Heiner; Scheufen, Marc |
| Abstract: | Die Innovationsherausforderungen für Industrieunternehmen nehmen in ihrer Komplexität zu. Neben der Produktentwicklung steigen die Anforderungen an elektronische Hard- und Software, Vernetzung und Automatisierung, den Einsatz Künstlicher Intelligenz sowie Nachhaltigkeit. Diese Herausforderungen zeigen sich in der Automobilindustrie in besonderer Weise. Kooperationen mit Start-ups, die auf die jeweiligen Technologien spezialisiert sind, können deshalb einen hohen Beitrag zur Problemlösung und Innovationsbeschleunigung leisten. Dieser IW-Report wertet eine Befragung von Unternehmen der Automobilbranche und technologieorientierten Start-ups aus, um ihr Kooperationsverhalten und die gemeinsam bearbeiteten Innovationsfelder zu analysieren. Wie bereits im Vorjahr wurden hierzu durch den VDA etablierte Unternehmen des Automobilbereichs nach ihren Start-up-Kooperationen befragt. Erstmals betrachtet die diesjährige Studie zudem die Start-up-Seite. Im Vergleich zum Vorjahr (60%) zeigt die diesjährige Befragung mit 50% eine geringere Kooperationsbeteiligung der etablierten Unternehmen an, was sicherlich auch in der gesamtwirtschaftlichen Lage und der Transformation in der Automobilindustrie begründet liegt. |
| Abstract: | The innovation challenges facing industrial companies are becoming increasingly complex. In addition to industrial product development, the requirements for electronic hardware and software, networking and automation, the use of artificial intelligence as well as CO2 savings and sustainability are increasing. This bundle of innovation challenges is particularly evident in the automotive industry. Cooperation with innovative companies that specialize in the respective technologies can therefore make a significant contribution to accelerate innovation. This IW report evaluates a survey of companies in the automotive industry and technology-oriented start-ups in order to analyze their cooperation behavior and the f innovation topics dealt with in cooperations. Half of the established companies and over 90% of start-ups have entered into such collaborations. Access to new technologies and increasing innovative capacity are the most important cooperation goals on the corporate side. On the start-up side, the creation of synergies and the strengthening of the company's reputation dominate. Joint work on projects and prototypes with start-ups is the most important form of cooperation, ahead of purchasing services. It is clear that scarce human and financial resources, doubts about the longevity of the start-up partner and different implementation speeds are the biggest obstacles to cooperation. Target-oriented events organized by associations and business development agencies as well as AI-supported contact exchanges could facilitate the initiation of contacts in order to facilitate more innovation-oriented collaborations. |
| Keywords: | Kfz-Industrie, Unternehmenskooperation, Mittelständische Industrie, Unternehmensgründung, Innovation, Befragung, Deutschland |
| JEL: | L14 L23 L26 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwkrep:308060 |
| By: | Moïse Drabo; Raquel Fonseca |
| Abstract: | LE QUÉBEC DES BÂTISSEURS The increase in university graduation rates has enriched human capital in Canada and positively impacted the labor market, including the field of entrepreneurship. This chapter explores the relationship between university education and entrepreneurship in Quebec, Ontario, and Canada, using econometric analyses based on data from the Labour Force Survey, the National Household Survey, and the Census of Population from Statistics Canada. The findings show that holding a university degree increases the likelihood of becoming an entrepreneur and enhances entrepreneurs' earnings. LE QUÉBEC DES BÂTISSEURS L’augmentation du taux de diplomation universitaire a enrichi le capital humain au Canada et a eu un impact positif sur le marché du travail, y compris dans le domaine de l’entrepreneuriat. Ce chapitre explore la relation de l’éducation universitaire sur l’entrepreneuriat au Québec, mais également en Ontario et au Canada, avec des analyses économétriques basées sur les données de l’Enquête sur la population active, de l’Enquête nationale auprès des ménages et du Recensement de la population de Statistique Canada. Les résultats montrent qu’un diplôme universitaire augmente la probabilité de devenir entrepreneur et améliore la rémunération des entrepreneurs. |
| Keywords: | University Graduation, Entrepreneurship, Returns to Education, Diplomation universitaire, Entrepreneuriat, Rendements de l’éducation |
| JEL: | I26 J24 L26 |
| Date: | 2024–12–05 |
| URL: | https://d.repec.org/n?u=RePEc:cir:cirwor:2024s-10 |