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on Small Business Management |
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Issue of 2013‒08‒10
fourteen papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Maria Teresa Costa-Campi (University of Barcelona & IEB); Néstor Duch-Brown (University of Barcelona & IEB); José García-Quevedo (University of Barcelona & IEB) |
| Abstract: | The energy industry is facing substantial challenges that require innovation to be fostered. Nevertheless, levels of R&D investment and innovation remain quite low in comparison with other sectors. In this paper we analyse the main drivers of R&D investment and obstacles to innovation in the energy industry. We examine, firstly, whether the stated R&D objectives pursued by firms play a role in their R&D effort. Secondly, we analyse the effects of financial, knowledge and market barriers on the innovation outcomes of the firms. We rely on data from the Technological Innovation Panel (PITEC) for Spanish firms for the period 2003-2010. We use a structural model with three equations corresponding to the decision to carry out R&D or not, the R&D effort and the production of innovations. The results of the econometric estimations show, first, that R&D intensity is positively related to process innovation. Second, the main barriers that hamper innovation in the energy industry are related to market factors while financial and knowledge obstacles are not significant. |
| Keywords: | R&D, innovation, energy, barriers, regulation |
| JEL: | Q40 O31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2013-23&r=sbm |
| By: | Albahari, Alberto; Barge-Gil, Andrés; Pérez-Canto, Salvador; Modrego-Rico, Aurelia |
| Abstract: | The effectiveness of Science and Technology Parks (STPs) as instruments of innovation policy has generated thriving debate among academics, practitioners and policy makers. However, research mostly does not consider STPs’ heterogeneity. The present paper analyses the influence of different STP characteristics on their tenants'performance. Using data on 849 firms and 25 STPs from the 2009 Community Innovation Survey for Spain and a survey of STP managers respectively, we find that: (i) firms located in very new or longer established STPs show better innovative performance; (ii) the size of the STP and its management company positively affects the innovative performance of tenants while services provision has no effect on firms’ achieving better results; and (iii) firms in less technologically developed regions benefit more from location in an STP. |
| Keywords: | Science and Technology Parks; Innovation; Innovation Performance; Community Innovation Survey; Innovation policy |
| JEL: | L0 L2 L38 O30 O33 O38 O39 |
| Date: | 2013–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48829&r=sbm |
| By: | Gabriele Pellegrino (University of Barcelona & IEB); Mark J. Maria Savona (University of Sussex) |
| Abstract: | The paper adds to the scattered empirical evidence on the role of obstacles to innovation in a three-fold way. First, we correct for the usual sample selection bias by filtering out firms not interested in innovation from ‘potential innovators’. Second, we assess what mostly affects firms’ propensity to realize innovative outputs. Third, we do so in a panel framework by using an unbalanced panel of UK firm for the period 2002 - 2010. We find that demand- and market-related factors are as important as financing conditions in determining firms’ innovation failures. This evidence puts much of the latest hype on finance in perspective. |
| Keywords: | Barriers to innovation, innovative firms, potential innovators, failed innovators, panel data |
| JEL: | C23 O31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2013-21&r=sbm |
| By: | Antonio Vezzani (JRC-IPTS); Sandro Montresor (JRC-IPTS) |
| Abstract: | The paper investigates how top R&D investors differ in the production impact of their inputs and in their rate of technical change. We use the EU Industrial R&D Investment Scoreboard and perform a quantile estimation of an augmented Cobb-Douglass production function for a panel of more than 1,000 companies, covering the period 2002-2010. The results for the pooled sample are contrasted with those obtained from the estimates for different groups of economic sectors. Returns to scale are bounded by the initial size of the firm, but to an extent that decreases with the technological intensity of the sector. The output return of knowledge capital is the most important, irrespective of firm size, but in high-tech sectors only. Elsewhere, physical capital is the pivotal factor, although with size variations. The investigated firms appear different also in their technical progress: embodied in mid-high and low/mid-low tech sectors, and disembodied in high-tech sectors. |
| Keywords: | production function, R&D, firm and sector heterogeneity |
| JEL: | D24 D21 O30 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201302&r=sbm |
| By: | Chang, C.L.; McAleer, M.J.; Tang, J-T. |
| Abstract: | With the advent of globalization, economic and financial interactions among countries have become widespread. Given technological advancements, the factors of production can no longer be considered to be just labor and capital. In the pursuit of economic growth, every country has sensibly invested in international cooperation, learning, innovation, technology diffusion and knowledge. In this paper, we use a panel data set of 40 countries from 1981 to 2008 and a negative binomial model, using a novel set of cross-border patents and joint patents as proxy variables for technology diffusion, in order to investigate such diffusion. The empirical results suggest that, if it is desired to shift from foreign to domestic technology, it is necessary to increase expenditure on R&D for business enterprises and higher education, exports and technology. If the focus is on increasing bilateral technology diffusion, it is necessary to increase expenditure on R&D for higher education and technology. |
| Keywords: | R&D;exports;imports;cross-border patent;international technology diffusion;joint patent;negative binomial panel data |
| Date: | 2013–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureir:1765040779&r=sbm |
| By: | Wojciech Szewczyk (European Commission – JRC - IPTS); Anna Sabadash (European Commission – JRC - IPTS) |
| Abstract: | Since the 1990s, information and communication technology (ICT) has been an essential driver of economic growth. Between 1995 and 2010, the ICT sectors have accounted for over 20% of EU15 growth, even though they only constitute 5% of EU15 GDP. The high growth resulting from the ever-increasing pace of ICT-related innovation requires high levels of R&D to be sustained. Indeed, the European ICT sector accounts for over a quarter of overall business expenditure on R&D, which makes it the largest R&D investing sector. A set of EU policy initiatives emphasise the importance of ICT and the underlying R&D for boosting European performance and competiveness. In order to ensure that public policies create the right conditions for sustaining and increasing the support for R&D, an appropriate measuring framework based on the thorough review of the best available methodologies need to be devised. Such framework will serve as a tool for choosing the investment strategies of public spending that create a favourable climate for an increase of private spendings on ICT R&D, and to turn investments into economic growth and employment through innovation. This report aims to provide an overview of subjects and topics relevant for constructing a coherent framework for macroeconomic analysis of the impact of public spending on ICT R&D, and to set specific modelling requirements for such a framework. The overview is structured to resemble the sequential multistage causal process which links R&D policy intervention with the resulting economy-wide effects, and covers the following issues: relationship between public and private R&D expenditure, innovation and the R&D process, and diffusion and impact of ICT. Further, building on the theory reviewed and empirical evidence presented, the report identifies the general requirements for a modelling framework to be used for ICT R&D analysis. Since there are existing models which can be used as a base framework, the guidelines focus on the specific requirements for the development of an R&D module. This add-in module is called to provide specific initial solutions to account for economics of ICT R&D, and need to be fully integrated with the base CGE model. |
| Keywords: | ICT, R&D, public and private investment, innovation, CGE |
| JEL: | O30 C54 C68 E17 E65 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc82943&r=sbm |
| By: | Lee, Neil; Rodríguez-Pose, Andrés |
| Abstract: | The creative industries have long been seen as an innovative sector. More recent research posits that creative occupations are also a fundamental, but overlooked, driver of innovation. Theory also suggests cities are important for both creative industries and occupations, with urban environments helping firms innovate. Yet little empirical work has considered the links between creative industries, occupations, cities and innovation at the firm level. This paper addresses this gap using a sample of over 9,000 UK SMEs. Our results stress that creative industries firms are more likely to introduce original product innovations, but not those learnt from elsewhere. Creative occupations, however, appear a more robust general driver of innovation. We find no support for the hypothesis that urban creative industries firms are particularly innovative. However, creative occupations are used in cities to introduce product innovations learnt elsewhere. The results suggest future work needs to seriously consider the importance of occupations in empirical studies of innovation. |
| Keywords: | Innovation; Creative Industries; Creative Occupations; Cities; Learning |
| JEL: | O31 O38 R11 R58 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48758&r=sbm |
| By: | Christophe Bonnet (GDF - Gestion, Droit et Finance - Grenoble École de Management (GEM)); Peter Wirtz (Centre de Recherche Magellan - Université Jean Moulin - Lyon III : EA3713); Martine Séville (COACTIS - Université Lumière - Lyon II : EA4161 - Université Jean Monnet - Saint-Etienne) |
| Abstract: | This research is an attempt to make progress in the understanding of the process of board formation and its impact on the functions performed by the board in young entrepreneurial ventures. We study the link between board members' characteristics and the effective accomplishment of monitoring and resource provision functions. Expanding earlier research we argue that the identity of external financiers matters in configuring the board and designing its working mode and roles. This is because different investors (1) may be endowed with different skills and knowledge, and (2) their social identities influence the motivation to accomplish different roles. We present a conceptual framework of the process of board formation in entrepreneurial firms and confront it with an in-depth longitudinal case study of a young venture that has received funding from business angels and venture capitalists. We show that board composition and routines are co-constructed by different (but not all) salient stakeholders who were involved in the first input of external capital. The intended and actual role of the board members depends on their specific capabilities and financial stakes and on processes of social identification. The observation of evolving board routines shows that certain members participate in two parallel processes of interaction with the entrepreneurs. Formal board meetings essentially serve the purpose of regular monitoring, whereas certain board members contribute to resource provision in parallel informal interactions, when they strongly identify themselves with entrepreneurs. |
| Keywords: | Nascent governance; board of directors; entrepreneurial finance; social identification |
| Date: | 2013–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemptp:halshs-00850021&r=sbm |
| By: | Silvia Angilella; Sebastiano Mazz\`u |
| Abstract: | Small Medium-sized Enterprises (SMEs) face many obstacles when they try to access credit market. These obstacles are increased if the SMEs are innovative. In this case, financial data are insufficient or even not reliable. Thus, when building a judgemental rating model, mainly based on qualitative criteria (soft information), it is very important to finance SMEs' activities. Until now, there isn't a multicriteria credit risk model based on soft information for innovative SMEs. In this paper, we try to fill this gap by presenting a multicriteria credit risk model, specifically, ELECTRE-TRI. To obtain robust SMEs' assignments to the risk classes, a SMAA-TRI analysis is also implemented. In fact, SMAA-TRI incorporates ELECTRE-TRI by considering different sets of preference parameters with Monte Carlo simulations. Finally, we carry out some real case studies, with the aim of illustrating the multicriteria credit risk model proposed. |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1308.0889&r=sbm |
| By: | Giorgio Stefano Bertinetti (Università Ca' Foscari Venice); Elisa Cavezzali (Università Ca' Foscari Venice); Gloria Gardenal (Università Ca' Foscari Venice) |
| Abstract: | We aim to investigate the impact of the adoption of an Enterprise Risk Management (ERM) system on the enterprise value and to discover which are the determinants of this choice. Several economic actors have decided to face the current economic and financial complexity shifting from a Traditional silo-based Risk Management approach (TRM) to a more comprehensive one, the so called Enterprise Risk Management (ERM). Some academics have tried to investigate the effects of the ERM implementation on firm value, mainly focusing on the financial industry. The results are still controversial. Moreover, there is no empirical evidence about the adoption of ERM programs among non-financial companies. The aim of our study is double: first, we try to understand if the ERM implementation affects firm value on a sample of 200 European companies, belonging to both financial and non-financial industries; second, we test which are the determinants of the adoption of an ERM system. We do this performing a fixed effects panel regression analysis (goal 1) and a fixed effects logistic analysis (goal 2). We find a positive statistically significant relation between the ERM adoption and firm value. As for the probability that a firm engages in an ERM protocol, we find that size, the company beta and profitability (ROA) are the statistically significant determinants. |
| Keywords: | traditional risk management, enterprise risk management, industry, firm val |
| JEL: | G32 L22 L25 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:46&r=sbm |
| By: | Charles Hulten |
| Abstract: | Recent studies have shown that knowledge-based capital (KBC) is an important source of economic growth in many of the world’s advanced economies (much more so than R&D alone) and is positively correlated with real GDP per capita in a cross-section of these economies. This literature is still in its infancy and there is, as yet, no systematic discussion of KBC policy. This paper makes an attempt to fill this gap.<P>Stimuler la croissance économique par l'investissement intellectuel<BR>Des études récentes révèlent que le capital intellectuel constitue une source importante de croissance économique (bien plus que la R-D) dans de nombreuses économies avancées du monde et qu’en général il y affiche une corrélation positive avec le PIB réel par habitant. Les travaux dans ce domaine n’en étant qu’à leurs débuts, l’action à mener à l’égard du capital intellectuel ne fait pas encore l’objet d’une réflexion systématique. La présente étude tâche d’y remédier. |
| Date: | 2013–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2013/2-en&r=sbm |
| By: | Andrea Morescalchi (IMT Lucca Institute for Advanced Studies); Fabio Pammolli (IMT Lucca Institute for Advanced Studies); Orion Penner (IMT Lucca Institute for Advanced Studies); Petersen Alexander M. (IMT Lucca Institute for Advanced Studies; IMT Lucca Institute for Advanced Studies and Department of Managerial Economics, Strategy and Innovation, K.U. Leuven) |
| Abstract: | Recent studies on the geography of knowledge networks have documented a negative impact of physical distance and institutional borders upon research and development (R&D) collaborations. Though it is widely recognized that geographic constraints hamper the diffusion of knowledge, less attention has been devoted to the temporal evolution of these constraints. In this study we use data on patents filed with the European Patent Office (EPO) for 50 countries to analyze the impact of physical distance and country borders on inter-regional links in four different networks over the period 1988-2009: (1) co-inventorship, (2) patent citations, (3) inventor mobility and (4) the location of R&D laboratories. We find the constraint imposed by country borders and distance decreased until mid-1990s then started to grow, particularly for distance. The intensity of European cross-country inventor collaborations increased at a higher pace than their non-European counterparts until 2004, with no significant relative progress afterwards. Moreover, when analyzing networks of geographical mobility, multinational R&D activities and patent citations we do not depict any substantial progress in European research integration aside from the influence of common global trends. |
| Keywords: | Geography of knowledge; Networks of Innovators; European integration; Spatial proximity; Crossborder collaboration; Gravity model |
| JEL: | O30 R10 R23 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:ial:wpaper:4/2013&r=sbm |
| By: | Berg, Gunhild; Fuchs, Michael |
| Abstract: | This paper provides an overview of the state of access to bank financing for SMEs in five Sub-Saharan African countries and analyzes the drivers behind banks'involvement with SMEs. The paper builds on data collected through five in-depth studies in Kenya, Nigeria, Rwanda, South Africa, and Tanzania between 2010 and 2012. The paper shows that the share of SME lending in the overall loan portfolios of banks varies between 5 and 20 percent. Reasons for this finding vary, but key contributing factors are the structure and size of the economy and the extent of Government borrowing, the degree of innovation mainly as introduced by foreign entrants to financial sectors, and the state of the financial sector infrastructure and enabling environment. |
| Keywords: | Access to Finance,Banks&Banking Reform,Debt Markets,Financial Intermediation,Environmental Economics&Policies |
| Date: | 2013–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6563&r=sbm |
| By: | Marius Ley (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Tobias Stucki (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Martin Wörter (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | Based on patent data and industry specific energy prices for 18 OECD countries over 30 years we investigate on an industry level the impact of energy prices on green innovation activities. Our econometric models show that energy prices and green innovation activities are positively related and that energy prices have a significantly positive impact on the share of green innovations in non-green innovations. More concretely, our main model shows that a 10% increase of the average energy prices of the previous five years results in a 2.7% and 4.5% increase of the number of green innovations and the share of green innovations in non-green innovations, respectively. We also find that the impact of energy prices increases with an increasing lag between energy prices and innovation activities. Robustness tests confirm the main results. |
| Keywords: | Innovation, environment, energy prices |
| JEL: | O30 O34 Q55 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:13-340&r=sbm |