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on Small Business Management |
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Issue of 2011‒08‒22
six papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Bogliacino, Francesco (Universidad EAFIT); Piva, Mariacristina (Università Cattolica del Sacro Cuore); Vivarelli, Marco (Università Cattolica del Sacro Cuore) |
| Abstract: | After discussing theory regarding the consequences of technological change on employment and surveying previous microeconometric literature, our aim with this paper is to test the possible job creation effect of business R&D expenditures, using a unique longitudinal database covering 677 European manufacturing and service firms over the period 1990-2008. The main outcome from the whole sample dynamic LSDVC (Least Squared Dummy Variable Corrected) estimate is the labour-friendly nature of companies’ R&D, the coefficient of which turns out to be statistically significant, although not very large in magnitude. However, the positive and significant impact of R&D expenditures on employment is detectable in services and high-tech manufacturing but absent in the more traditional manufacturing sectors. This means that we should not expect positive employment effects from increasing R&D in the majority of industrial sectors. This is something that should be borne in mind by European innovation policy makers having employment as one of their specific aims. |
| Keywords: | innovation, employment, manufacturing, services, LSDVC |
| JEL: | O33 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5908&r=sbm |
| By: | CZARNITZKI Dirk; LOPES BENTO Cindy |
| Abstract: | Applying a variant of a non-parametric matching estimator, we consider European funding and national funding as heterogeneous treatments, distinguishing and simultaneously analyzing the effect these treatments have on innovation input and performance. In terms of input, getting funding from both sources yields the highest impact. If funding from only one source is received, EU grants have higher effects. In terms of output, holding innovation expenditures constant, funding from both sources display higher sales of market novelties and future patent applications at the firm level. If only one grant is obtained, we find superiority for national funding. |
| Keywords: | Subsidies; Innovation; Policy Evaluation; Treatment effects; Nonparametric matching estimation |
| JEL: | C14 H50 O38 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2011-42&r=sbm |
| By: | Maria Comune; Alireza Naghavi; Giovanni Prarolo |
| Abstract: | With the rise of the knowledge economy; delivering sound innovation policies requires a thorough understanding of how knowledge is produced and diffused. This paper takes a step to analyze a new form of globalization; the so-called system of Global Innovation Networks (GINs); to shed light on how the protection of intellectual property rights (IPRs) influences their creation and development. We focus on the role of IPR protection in fostering international innovative activities in emerging economies (South); such as China and India; and more generally; how IPRs affect the development of GINs between newly industrialized countries and OECD countries. Using both survey-based firm-level and country-level global data; we find IPRs to be an important determinant of participation in GINS from a Southern perspective. We find IPR protection at home and its harmonization across county pairs foster South-North formation of GINs. We also find that a stringent regime in the destination country discourages foreign international innovative activities that originate in NICs. Both levels of our analysis confirm the ICT industry; particularly the hardware segment; to rely on IPRs when engaging in the international outsourcing and offshoring of innovation or in patenting activities abroad. |
| Keywords: | Gravity Model; Information Communication Technology; Innovation; Intellectual Property Rights; International collaborations; Networks |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:mod:recent:069&r=sbm |
| By: | Joachim Wagner (Institute of Economics, Leuphana University of Lüneburg, Germany) |
| Abstract: | The literature on international trade and firm performance grows exponentially. This paper attempts to summarize what we learn from this literature to guide both future empirical and theoretical work in this area, and public debates and policy makers, in an evidence-based way. The focus is on the empirical part of the literature that consists of recently published papers using data for firms from manufacturing or services industries to study the links between international trade (exports and imports) and dimensions of firm performance (productivity, wages, profitability and survival). It discusses recent add-ons to the box of tools for empirical investigation in this field and suggests topics for future research. |
| Keywords: | International trade, firm performance, empirical studies, survey |
| JEL: | F14 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:210&r=sbm |
| By: | Poddar, Sougata; Bouguezzi , Fehmi |
| Abstract: | We consider the optimal licensing strategy of an insider patentee in a circular city of Salop’s model and in a linear city of Hotelling’s model when firms have asymmetric pre-innovation marginal costs of production and compete in prices. We completely characterize the optimal licensing policies using a fixed fee and per-unit royalty under the drastic and non-drastic innovations. We find that when the innovative firm is efficient compared to the licensee at the pre-innovation stage then the results regarding optimal licensing policy coincide with the results described in the literature with symmetric firms. However, this is not true when the innovative firm is inefficient in the pre-innovation stage compared to the licensee. To that end, we show that even a drastic innovation can be licensed using a royalty scheme when the patentee is highly inefficient compared to licensee in the pre-innovation stage and the size of the innovation is intermediate. We also show that in this set-up, fixed fee licensing is never optimal. |
| Keywords: | Innovation; Technology transfer; Salop model; Hotelling model; Patent licensing; symmetric and asymmetric costs |
| JEL: | L13 D45 D43 |
| Date: | 2011–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32764&r=sbm |
| By: | Joachim Wagner (Institute of Economics, Leuphana University of Lüneburg, Germany) |
| Abstract: | This paper documents the relationship between firm survival and three types of international trade activities – exports, imports and two-way trade. It uses unique new representative data for manufacturing enterprises from Germany, one of the leading actors on the world market for goods, that merge information from surveys performed by the Statistical Offices and administrative data collected by the Tax Authorities. It contributes to the literature by providing the first evidence on the role of imports and two-way trading for firm survival in a highly developed country. Descriptive statistics and regression analysis (with and without explicitly taking the rare events nature of firm exit into account) point to a strong positive link between firm survival on the one hand and imports and two-way trading on the other hand, while exporting alone does not play a role for exiting the market or not. |
| Keywords: | Exports, imports, firm survival |
| JEL: | F14 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:211&r=sbm |