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on Small Business Management |
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Issue of 2010‒07‒17
seven papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Vega-Jurado, Jaider; Manjarrés-Henríquez, Liney; Gutiérrez-Gracia, Antonio; Fernández-de-Lucio, Ignacio |
| Abstract: | This paper analyses the effect of interaction with universities on firms? innovation output, measured as the degree of novelty of product innovation. The analysis is based on a sample of 3,257 manufacturing firms, active in innovation, and located in Spain. We distinguish between two types of interaction mechanisms: cooperation in innovation activities and outsourcing of research and development (R&D) services. Using data from two waves of the Spanish innovation survey (2004 and 2007), we examine the effect of interaction in 2004 on subsequent product innovation in 2005-2007. The results show that neither cooperation with universities nor outsourcing of R&D services to these agents has a significant effect on product innovation. In other words, for Spanish manufacturing firms the acquisition of knowledge from universities does not represent an important strategy to introduce new products into the market. In contrast, cooperation with customers and acquisition of external R&D from other firms seem to be important for innovation, especially for firms pursuing more radical innovation. |
| JEL: | O31 O32 L60 |
| Date: | 2010–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:ing:wpaper:201008&r=sbm |
| By: | Francesco Bogliacino (JRC-IPTS); Mario Pianta (University of Urbino) |
| Abstract: | In this article we investigate – both conceptually and empirically – the relationship between three interconnected elements of the Schumpeterian “engine of progress”: the ability of industries’ R&D efforts to turn out successful innovations; the ability of innovations to lead to high entrepreneurial profits; the commitment of industries to invest profits in further technological efforts. We build a simultaneous three-equation model – with appropriate lags – and we test it at industry level – for 38 manufacturing and service sectors – on eight European countries over two time periods from 1994 to 2006. The results show that the model effectively accounts for the dynamics of European industries. Our main results are that demand and innovation are the key determinants for firm profitability; second that both technology adoption and R&D concur to improve innovative performance; third, that R&D is path dependent and is negatively related to the distance from the frontier. Finally, manufacturing and services show similar behaviour. |
| Keywords: | Profits, R&D, Innovation, System Two Stages Least Squares |
| JEL: | L6 L8 O31 O33 O52 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201005&r=sbm |
| By: | Polder, Michael; Van Leeuwen, George; Mohnen, Pierre; Raymond, Wladimir |
| Abstract: | We propose a model where both R&D and ICT investment feed into a system of three innovation output equations (product, process and organizational innovation), which ultimately feeds into a productivity equation. We find that ICT investment and usage are important drivers of innovation in both manufacturing and services. Doing more R&D has a positive effect on product innovation in manufacturing. The strongest productivity effects are derived from organizational innovation. We find positive effects of product and process innovation when combined with an organizational innovation. There is evidence that organizational innovation is complementary to process innovation. |
| Keywords: | Innovation; ICT; R&D; productivity |
| JEL: | L25 O30 O32 O33 O31 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23719&r=sbm |
| By: | Adel Ben Youssef (GREDEG and Univ. Nice Sophia-Antipolis); Walid Hadhri; Hatem M’henni |
| Abstract: | The aim of this paper is twofold: first, we want to explore the intra-firm diffusion of information and communication technologies (ICT) within the Tunisian firms and to characterize its general trends of adoption and usage. Second, we want to emphasize the rank and epidemic effects stressed by the disequilibrium models of intra-firm diffusion of innovation following the traditional view of (Mansfield, 1963, Antonelli 1985). Based on face-to-face questionnaires of a random sample of 175 firms our paper shows that: (i) three technological waves of ICT adoption are well characterized in the Tunisian manufacturing sector. This dynamic of adoption is linked to the age of the technologies. Time is the main explanatory variable for intra-firm diffusion of these technologies. (ii) A positive correlation between the size of the firm, seniority and the depth of adoption is found. These econometric estimates show that the rank effect is well characterized within the Tunisian firms. (iii) A positive correlation between technological absorptive capacity building and intensity of ICT usage is found. This correlation confirms the epidemic effect. (iv) Our results show that disequilibrium models’ explanations of intra-firm diffusion of innovation are valid within the Tunisian manufacturing sector and seem more appropriate than the equilibrium theory for developing countries. |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:532&r=sbm |
| By: | Simon Alder |
| Abstract: | This paper provides new evidence on the relationship between innovation, competition and distance to the technology frontier, using enterprise surveys from 40 developing and transition countries. Different from previous empirical studies, the distance to frontier is measured by a firm's technology level relative to its main competitor. This self-reported comparison allows to capture a crucial determinant of a firm's business strategy and its response to competition. The findings from the empirical analysis are as follows. Firstly, firms with more advanced technology compared to their main competitors have more product innovations. Secondly, there is evidence that innovation and competition are more positively correlated at low levels of competition than at high levels. With some measures of competition, the correlation is highest at intermediate levels of competition, which suggests an inverted-U relationship. Thirdly, in certain specifications, competition is most positively correlated with product innovation when a firm is more advanced than its main competitor. In other cases, this correlation is strongest for firms that are at the same technology level as their competitors. However, the differences in the correlations between more and less advanced firms are not always significant. |
| Keywords: | Market structure, competition, innovation, technology adaption, growth |
| JEL: | O16 O31 O33 O38 O40 L16 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:zur:iewwpx:493&r=sbm |
| By: | ITO Keiko; LECHEVALIER Se'bastien |
| Abstract: | Although heterogeneity in the performance of firms is a well-established stylized fact, we still lack full understanding of its origins and the reasons why it persists. Instead of assuming that performance differences are exogenous, this paper focuses on two endogenous strategies - innovation and global engagement - and interprets them as two ways to accumulate knowledge and improve firms' capabilities. We are particularly interested in analyzing interactions between these strategies and their effect on firms' performance. By using a firm-level panel dataset drawn from a Japanese large-scale administrative survey for the years 1994 - 2003, we first find that innovation and exporting strategies are characterized by complementarities, which define coherent productive models or patterns of learning. Second, we show that these different strategies lead to various performances in terms of productivity and survival. Third, by using a propensity score matching approach, we show that these differences in performance are lasting. Overall, our paper shows that the interaction of innovation and export investments is a source of permanent differences in performance among firms. |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:10037&r=sbm |
| By: | Wörter, Martin; Rammer, Christian; Arvanitis, Spyros |
| Abstract: | This paper analyses the relationship between past innovation output, competition, and future innovation input in a dynamic econometric setting. We distinguish two dimensions of competition that correspond to the concepts of product substitutability and entry barriers due to fixed costs. Based on firm-level panel data for Germany and Switzerland we obtain consistent results for both countries. Innovation output in t-1 as measured by the sales share of innovative products is positively related to the degree of product obsolescence in t, and negatively to the degree of substitutability in t in both countries. Further, we find that rapid product obsolescence provides positive incentives for higher - primarily product-oriented - R&D investments in t+1, while high substitutability exerts negative incentives for future R&D investment. -- |
| Keywords: | Innovation,R&D,Competition |
| JEL: | O3 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10039&r=sbm |