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on Small Business Management |
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Issue of 2010‒04‒04
seven papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | William Kerr; William Lincoln |
| Abstract: | This study evaluates the impact of high-skilled immigrants on US technology formation. We use reduced-form specifications that exploit large changes in the H-1B visa program. Higher H-1B admissions increase immigrant science and engineering (SE) employment and patenting by inventors with Indian and Chinese names in cities and firms dependent upon the program relative to their peers. Most specifications find limited effects for native SE employment or patenting. We are able to rule out displacement effects, and small crowding-in effects may exist. Total SE employment and invention increases with higher admissions primarily through direct contributions of immigrants. |
| Keywords: | Innovation, Research and Development, Patents, Scientists, Engineers, Inventors, H-1B, Immigration, Ethnicity, India, China, Endogenous Growth |
| JEL: | F15 F22 J44 J61 O31 |
| Date: | 2010–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wdi:papers:2010-978&r=sbm |
| By: | Shiri M. Breznitz; Antti-Jussi Tahvanainen |
| Abstract: | Even with globalization, industrial clusters are maintaining their importance in today’s economy. With the decomposition of production we find that clusters are becoming focused on specific industries and stages of production. This paper analyzes two peripheral western countries, Finland and Israel, which saw success in their ICT clusters and wanted to duplicate this success building on their knowledge in the life science industry to create biotechnology clusters. This paper focuses on two innovation-based clusters, the bio¬technology agglomerations in Rehovot, Israel, and Helsinki, Finland. These industrial districts consist of companies, many spun out of university research, that are either devoted to early-stage R&D (Israel), or choose to conduct the entire business cycle (Finland). Utilizing a multi-method study that includes both quantitative and qualitative research, with a series of in-depth interviews and site visits, archival and statistical data, the paper investigates whether a cluster of young research companies can become the basis of industrial growth and bring economic sustainability to a region. We find that while the firms’ strategic choices regarding their focus on certain positions in the value chain do not necessarily have any direct implications on the sustainability of the respective clusters as such, a variety of other characteristics necessary for long-term sustainability are missing in both clusters. These include particularly inter-firm knowledge flows within the clusters, an active and demanding VC market, connections to international expertise, and opportunities to recruit experienced expertise. |
| Keywords: | clusters, biotechnology, peripheral regions, sustainability |
| Date: | 2010–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1212&r=sbm |
| By: | Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Johansson, Dan (Ratio); Stenkula, Mikael (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Public policy affects the prevalence and performance of both productive and high-impact entrepreneurship. High-impact entrepreneurship prospers when knowledge is successfully generated and exploited in the economy. This process depends on complementary key ac-tors who use their competencies in what we denote a competence bloc. Although variations in economic contexts make prescribing a general panacea impossible, a number of relevant policy areas that affect key actors can be identified. In this paper this is done in the areas of tax policy and labor market policy. It is shown that high and/or distortive taxes and heavy labor market regulations impinge on the creation and functioning of competence blocs, thereby reducing high-impact entrepreneurship. |
| Keywords: | Entrepreneurship; Gazelles; High-growth firms; High-impact entrepreneurship Innovation; Institutions; Labor market policy; Tax policy |
| JEL: | H32 L25 L50 M13 O31 P14 |
| Date: | 2010–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0826&r=sbm |
| By: | Joel Stiebale |
| Abstract: | This paper provides empirical evidence on the relationship between cross-border acquisitions and innovation activities at the fi rm level. In contrast to previous studies that analyze the eff ects on innovation in target fi rms, this paper investigates the eff ects on the investing fi rms. For the empirical analysis a unique fi rm-level data set is constructed that combines survey data for German fi rms with a merger and acquisition database. After a cross-border acquisition, investing fi rms display a higher rate of domestic expenditures for research and development. After controlling for endogeneity of foreign acquisitions by estimating a two-equation system with limited dependent variables and applying instrument variable techniques it is found that part of this correlation stems from a causal eff ect. The estimated eff ects are robust towards alternative identifi cation strategies and are higher in industries with high knowledge intensity. The analysis is complemented by an investigation of the eff ects on tangible investment spending and by a comparison of the eff ects of cross-border acquisitions to those of Greenfi eld foreign direct investments and domestic M&As. |
| Keywords: | Multinational enterprises; mergers and acquisitions; innovation |
| JEL: | D21 F23 G34 C31 O31 O33 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0161&r=sbm |
| By: | Otilia Driga (Departament d'Economia de l'Empresa, Universitat Autònoma de Barcelona); Diego Prior (Departament d'Economia de l'Empresa, Universitat Autònoma de Barcelona) |
| Abstract: | Recent research on the economic performance of women-controlled firms suggests that their underperformance may not result from differences in the managerial ability of women as compared to men, but it can be the result of different levels of start-up resources. Using accounting data, this paper examines the effects that selected start-up conditions have on the economic performance observed in a sample of 4450 Spanish manufacturing firms. The results indicate significant differences regarding the initial conditions, showing lower levels of assets and number of employees what have implications on the economic performance of women-controlled firms. |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:bbe:wpaper:200907&r=sbm |
| By: | Christ, Julian P. |
| Abstract: | This paper contributes with empirical findings to European co-inventorship location and geographical coincidence of co-patenting networks. Based on EPO co-patenting information for the reference period 2000-2004, we analyze the spatial con figuration of 44 technology-specific co-inventorship networks. European co-inventorship (co-patenting) activity is spatially linked to 1259 European NUTS3 units (EU25+CH+NO) and their NUTS1 regions by inventor location. We extract 7.135.117 EPO co-patenting linkages from our own relational database that makes use of the OECD RegPAT (2009) files. The matching between International Patent Classification (IPC) subclasses and 44 technology fields is based on the ISI-SPRU-OST-concordance. We con firm the hypothesis that the 44 co-inventorship networks differ in their overall size (nodes, linkages, self-loops) and that they are dominated by similar groupings of regions. The paper offers statistical evidence for the presence of highly localized European co-inventorship networks for all 44 technology fields, as the majority of linkages between NUTS3 units (counties and districts) are within the same NUTS1 regions. Accordingly, our findings helps to understand general presence of positive spatial autocorrelation in regional patent data. Our analysis explicitly accounts for different network centrality measures (betweenness, degree, eigenvector). Spearman rank correlation coefficients for all 44 technology fields confirm that most co-patenting networks co-locate in those regions that are central in several technology-specific co-patenting networks. These findings support the hypothesis that leading European regions are indeed multi- filed network nodes and that most research collaboration is taking place in dense co-patenting networks. -- |
| Keywords: | Co-patenting,co-inventorship,networks,linkages,co-location,RegPAT |
| JEL: | C8 O31 O33 R12 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:142010&r=sbm |
| By: | Christian Schröder (EUropäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | This paper highlights the role of financial development in producing innovative products and services. Venture Capitalists (VCs) seem to play a crucial role in achieving product and service innovation. Young entrepreneurs particularly face the problem of financial constraints if starting their business, and risk capital could be their sole solution. However, the level of early-stage venture capital (VC) investments across European countries differ profoundly. I employ a panel analysis to illustrate whether technical and innovative opportunities as well as entrepreneurial environment influence early-stage venture capital investments. In addition, I emphasize the role of the financial system in attracting early stage VC. The empirical analysis was conducted in 15 European countries and looked at the period from 1995 to 2005. The results show that technical and innovation opportunities as well as entrepreneurial environment influence the level of early-stage risk capital. Taking the financial system also into account, the analysis revealed that a bank-based system has a negative impact on the relative amount of early stage VC investments, as a market-based system attracts risk capital for young entrepreneurs. Assumedly, venture capital and debt provided by banks are found not to be complements but rather substitutes. |
| Keywords: | Early Stage Venture Capital, Risk Capital, Financial System, Financing Innovations |
| JEL: | G23 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei167&r=sbm |