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on Small Business Management |
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Issue of 2012‒09‒22
ten papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Andreas Reinstaller (WIFO); Fabian Unterlass (WIFO) |
| Abstract: | This paper presents an analysis of innovation behaviour at the firm level across countries with different levels of technological capabilities and economic development. Using data from the Community Innovation Survey for 20 European countries the paper shows that the impact of total innovation expenditures – including next to R&D also outlays for technology transfer, the market introduction of innovations or new designs – increases monotonically across countries with their level of technological capabilities. R&D investments instead have a significant impact on the generation of innovations only for firms located in countries with higher levels of technological capabilities. Firm specific competencies to suggest or contribute to innovation projects have a more significant effect on the innovation output the higher the level of economic development of the countries in which firms are located. Finally, the paper presents also evidence that R&D does not generally increase the absorptive capabilities of firms. |
| Keywords: | Innovation decision, Catching up, Technological capabilities, R&D |
| Date: | 2012–09–14 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2012:i:436&r=sbm |
| By: | Barge-Gil, Andrés; López, Alberto |
| Abstract: | The determinants of R&D are an important topic of industrial economics. The classical Schumpeterian hypotheses about the influence of size and market power have been complemented with the role played by industry determinants, such as demand pull, technological opportunity and appropriability, in determining R&D investments. However, R&D has always been considered as a whole, even though research and development are different activities with different purposes, knowledge bases, people involved and management styles. We take advantage of a new panel database of innovative Spanish firms (PITEC) to distinguish between research and development efforts of firms. We analyze the role jointly played by traditional R&D determinants in driving research and development, accounting for the differences between both activities. Results show that demand pull and appropriability have a higher effect on development, while technological opportunity is more influential for research. Differences are statistically significant, important in magnitude, and robust to the use of different indicators for demand pull, technological opportunity and appropriability and to several robustness checks. |
| Keywords: | R&D Determinants; Schumpeterian hypotheses; Demand pull; Technological opportunity; Appropriability |
| JEL: | O3 |
| Date: | 2012–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:41270&r=sbm |
| By: | Anna Cabigiosu (Department of Management, Università Ca' Foscari Venezia); Diego Campagnolo (Department of Economics and Management, Università di Padova) |
| Abstract: | In this paper we study the relationship between service innovation and firm's performances in the KIBS domain. In line with previous works, we maintain that service innovation positively impacts firm's performances but we also claim that this relationship is likely to be moderated by how the service firm conceives its service configuration. Particularly, we point out that service configurations based on standard and modular services positively moderate the positive relationship between innovation and performance. Using a sample of 239 Italian KIBS firms, we empirically test our model. Results confirm that service innovation is positively associated with firmÕs performances both as market size and, albeit weakly, as ROI growth. Results also confirm the positive moderating role of standard services while the moderating role of modular services is only marginal. Overall, we contribute to the existing literature of KIBS and service innovation showing that service innovation and service customization should be considered as separate and that KIBS firms can experience increasing returns if they are able to combine service innovation and service standardization. |
| Keywords: | Services, Innovation, Performance, Standard services, Modular services |
| JEL: | O32 O33 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:23&r=sbm |
| By: | Neil Foster (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Innovation is considered to be an important determinant of performance at the firm, industry and country level. This view is supported by empirical evidence showing the importance of innovative activities on firm and industry performance and country growth rates. The majority of the world’s R&D is concentrated in a handful of countries however, meaning that domestic innovation is of little importance for most countries. Such countries can benefit from innovation conducted elsewhere however, if knowledge and technology is diffused across borders. In this paper we survey existing literature on innovation and technology diffusion and discuss descriptive statistics on the extent of innovation and technology diffusion across countries to provide insights into the likely developments in innovation and diffusion. |
| Keywords: | Innovation, technology diffusion, R&D internationalization |
| JEL: | O3 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:wii:rpaper:rr:380&r=sbm |
| By: | Marta Foddi; Stefano Usai |
| Abstract: | Europe 2020 strategy and the initiative “Innovation Union” call for a particular attention at the territorial dimension of innovation and knowledge creation. The heterogeneity across regions in their capacity to create knowledge and innovation, but also in their abilities to exploit ideas and technologies available across the European territory, motivates in-depth analyses of the territorial dimension of the knowledge economy. This paper investigates the nature of knowledge production and diffusion among regions in 29 EU countries and tries to assess its effectiveness. The analysis follows a two-step analytical route. Firstly, as a preliminary analysis, we estimate a knowledge production function (Griliches, 1979 and many others) with the usual parametric methods, in order to find out which are the main determinants of knowledge production at the regional level in Europe. Secondly, based on these findings, we apply DEA to assess the degree of efficiency of European regions in their use of internal and external inputs for the production of new knowledge and ideas. This allows to provide a ranking of the innovative performance of EU regions for two points in time, the beginning of the current century and the second part of this decade. Such rankings will be evaluated thanks to the Malmquist productivity index in order to assess the relative importance of its main components. According to the Data Envelopment Analysis, we found further evidence of a dualistic (centre vs periphery) pattern in the regional innovation activities, with the highest efficient territories located in the most central or economically strategic areas of the continent. On the contrary, the application of the Malmquist productivity index shows that productivity dynamics has been extremely differentiated across regions in terms of both magnitude and intrinsic features. We, again, observe important differences between the core and periphery of Europe and most specifically between the countries which are rich and industrialized and form the so called “Old Europe” and those which are relatively poor and have entered the European Union quite recently. |
| Keywords: | innovation; human capital; spatial spillovers; European regions; DEA |
| JEL: | C13 C61 O33 R11 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201221&r=sbm |
| By: | Nyström, Kristina (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper uses individual-level data from the Swedish 2011 Global Entrepreneurship Monitor (GEM) to investigate differences with respect to individual characteristics associated with independent entrepreneurs (nascent entrepreneurship and new business ownership) and entrepreneurial employees. Are there any differences with respect to gender, age, income and education associated with these different forms of entrepreneurship? Furthermore, it can be argued that an entrepreneurial employee differs with respect to attitudes and perceptions about entrepreneurship. Do attitudes and perceptions about entrepreneurship, for example, perceiving entrepreneurship as good career choice, or the fear of failure differ between entrepreneurial employees and independent entrepreneurs? Our empirical findings shows what differs between entrepreneurial employees and independent entrepreneurs are their perceptions about opportunities and capabilities. Moreover, the probability of becoming an entrepreneurial employee increases with the level of education. |
| Keywords: | Entrepreneurial employees; Global Entrepreneurship monitor; Sweden |
| JEL: | D20 J24 L26 |
| Date: | 2012–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0281&r=sbm |
| By: | Sui, Sui; Yu, Zhihao; Baum , Matthias |
| Abstract: | Purpose: Recently, studies call for a more nuanced perspective on different internationalization patterns pursued by early internationalizers. These studies argue that most Born Global firms turn out to be Born Regional and that the proportion of true Born Global firms would be overestimated. Moreover, literature claims that the proportion of Born Global firms increases over time due to macroeconomic trends. We investigate these assumptions by providing a dynamic perspective on the prevalence of different types of internationalization patterns among Canadian small and medium-sized exporters (SMEs). Design/methodology/approach: To empirically examine the ideas above, we constructed a unique large-scale longitudinal (1997–2004) dataset. A multinomial logit model is employed to estimate a firm’s predicted probability, ceteris paribus, of choosing different internationalization patterns: Born Global, Born Regional, and Gradual Internationalization. Findings: We find that Born Global firms indeed account for a smaller proportion than Born Regional firms (16% vs. 27%). However, we find evidence that Born Globals and Born Regionals are increasingly established over time and that macroeconomic factors seem to account for this development at least partially. Originality/value Combining a rigorous empirical analysis with a unique large scale longitudinal dataset, we address two fundamental research questions in the international entrepreneurship (IE) literature a) which internationalization pattern prevails and b) if the Born Global pattern is increasingly established over time. We therewith theoretically contribute by comparing the predictive value of different internationalization frameworks international new venture (INV) framework, stage-models and regionalization hypothesis), toward which there is considerable current debate. |
| Keywords: | International New Ventures; Born Globals; Born Regionals; Longitudinal Study; Regional Strategy; Internationalization Process |
| JEL: | F13 O51 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:41177&r=sbm |
| By: | Sylvie Charlot; Riccardo Crescenzi; Antonio Musolesi |
| Abstract: | The paper looks at the genesis of innovation in the EU regions in order to shed light on the link between innovative inputs (R&D and Human Capital) and the genesis of economically valuable knowledge. The "traditional" regional Knowledge Production Function (KPF) is innovatively developed in three complementary directions. First, the KPF is "augmented" in order to control for all possible "unobservable" and "immeasurable" time varying factors that influence the genesis of innovation (i.e. localised institutional and relational factors, regional innovation policies). Second, a semi-parametric approach that relaxes any arbitrary assumption on the "shape" of the KPF is adopted. Finally, the assumption of homogeneity in the impact of R&D and Human Capital is relaxed by explicitly accounting for the differences between "core" and "peripheral" regions. The econometric results confirm the importance of accounting for time varying unobserved heterogeneity through the adoption of a "random growth" specification: R&D efforts exert a significant influence on innovation only after controlling for regional specific time varying unobserved factors. In addition the semi-parametric approach uncovers significant threshold effects for both R&D expenditure and Human Capital and highlights a strong complementary between these two factors. However, "core" regions benefit from a persistent advantage in terms of the "productivity" of their innovation inputs. This has important implications for the EU innovation policies at the regional level. |
| Keywords: | Innovation, Regions, Knowledge production function, Europe, Semi-parametric models |
| JEL: | O32 R11 C14 C23 |
| Date: | 2012–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:ceo:wpaper:39&r=sbm |
| By: | Jean Bonnet (University of Caen Basse-Normandie - CREM UMR CNRS 6211, France); Marcus Dejardin (Université Catholique de Louvain, IMMAQ CIRTES - FUNDP - University of Namur, CERPE); Antonia Madrid-Guijarro (Technical University of Cartagena, Financial Economics and Accounting Department, Spain) |
| Abstract: | Not only growth but better growth is required to address the tremendous challenges that European economies are facing. More entrepreneurs and more entrepreneurial firms -new and innovative firms- can contribute. A variety of factors may be considered to promote entrepreneurship among young people, and innovative activities among firms. Education is certainly one of the most relevant. The need to create a more favourable social climate for new businesses requires not only changing the state of mind but also improving globally the skills of entrepreneurs. It is also important to identify the most favourable context for the creation and development of sustainable, innovative companies, especially during economic crisis. This paper has been prepared to introduce and present original contributions from scholars in economics, management and sociology, that are collected in a book entitled The Shift to the Entrepreneurial Society: A Built Economy in Education, Sustainability and Regulation, to be published by Edward Elgar Publishing in July 2012. |
| Keywords: | entrepreneurship, socioeconomic challenges, education, sustainability, regulation |
| JEL: | L26 M13 I25 O10 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201231&r=sbm |
| By: | Vargas, Jose P Mauricio |
| Abstract: | Using Bolivian firm level data from the World Bank 2010 Enterprise Survey, we attempt to find evidence to support the idea that distinct formal firms (according to their size) have a distinct likelihood of facing obstacles. We propose that a potential endogeneity between firms' constraints and firm size should be considered. After calculating estimations from an IV-ordered probit with an ordinal endogenous regressor, the results suggest that the firm size affects the constraint level reported by firms, but not for all kind of obstacles. `Corruption', `Political Instability', and `Crime, Theft and Disorder' are obstacles which affect all firms; `Electricity' and `Transportation' are binding constraints to medium and large firms; and `Access to Financing' is a binding constraint to small firms. These findings are important because they can be directly extrapolated to public policy that is focused on the performance of firms. |
| Keywords: | Firm; Size; Constraints; IV-oprobit |
| JEL: | D21 L25 C42 O12 |
| Date: | 2012–09–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:41286&r=sbm |