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on Small Business Management |
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Issue of 2013‒10‒11
seven papers chosen by Joao Carlos Correia Leitao Universidade da Beira Interior and Universidade de Lisboa |
| By: | Acemoglu, Daron (MIT, CEPR and NBER); Akcigit, Ufuk (University of Pennsylvania and NBER); Bloom , Nicholas (Stanford University, NBER and CEPR); Kerr , William (Harvard University, Bank of Finland, and NBER) |
| Abstract: | We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A key feature is the selection between high- and low-type firms, which differ in terms of their innovative capacity. We estimate the parameters of the model using detailed US Census micro data on firm-level output, R&D and patenting. The model provides a good fit to the dynamics of firm entry and exit, output and R&D, and its implied elasticities are in the ballpark of a range of micro estimates. We find industrial policy subsidizing either the R&D or the continued operation of incumbents reduces growth and welfare. For example, a subsidy to incumbent R&D equivalent to 5% of GDP reduces welfare by about 1.5% because it deters entry of new high-type firms. On the contrary, substantial improvements (of the order of 5% improvement in welfare) are possible if the continued operation of incumbents is taxed while at the same time R&D by incumbents and new entrants is subsidized. This is because of a strong selection effect: R&D resources (skilled labor) are inefficiently used by low-type incumbent firms. Subsidies to incumbents encourage the survival and expansion of these firms at the expense of potential high-type entrants. We show that optimal policy encourages the exit of low-type firms and supports R&D by high-type incumbents and entry. |
| Keywords: | entry; growth; industrial policy; innovation; R&D; reallocation; selection |
| JEL: | E02 L11 O31 O32 O33 |
| Date: | 2013–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2013_022&r=sbm |
| By: | Leonid Gokhberg (National Research University Higher School of Economics, First Vice Rector; Institute for Statistical Studies and Economics of knowledge); Tatiana Kuznetsova (National Research University Higher School of Economics. Institute for Statistical Studies and Economics of knowledge. Director of the Centre for S&T, Innovation and Information Policies); Vitaly Roud (National Research University Higher School of Economics. Institute for Statistical Studies and Economics of knowledge. Research assistant); Stanislav Zaichenko (National Research University Higher School of Economics. Institute for Statistical Studies and Economics of knowledge. Senior research assistant) |
| Abstract: | “Monitoring innovation activities of innovation process participants” is a project which has been carried out by the Higher School of Economics (HSE) for several years to promote monitoring and analysis of innovation issues in general, and on specific activities of its particular actors from a scientific research perspective. The project is aimed at accumulating empirical knowledge about the nature and types of interaction between various actors of the national innovation system. In 2009-2010 the study was targeted at manufacturing and service sector companies while the 2010-2011 study targeted at R&D organisations. The specific objective for 2011 was studying various aspects of applied research organisations’ involvement in the innovation process (application of R&D results in the economy). The study yielded the following results: - A concept for monitoring R&D organisations’ innovation activities was proposed, including operational definition of such activities; - Survey programme and tools to monitor Russian R&D organisations were developed, including advanced methodological and procedural approaches as well as practical experience; - Results of R&D organisations’ innovation activities survey were analysed and compared with available statistical data; the collected data also allows to identify and systematise various factors and conditions affecting innovation activities of these organisations; Eventually areas for updating the survey’s concept and tools were identified |
| Keywords: | R&D institutions, public research institutes, S&T results, knowledge transfer, technology transfer, innovation, research management, innovation management, microdata, Russia |
| JEL: | O31 O32 O33 O38 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp06sti2013&r=sbm |
| By: | Schön, Benjamin; Pyka, Andreas |
| Abstract: | With mergers & acquisitions playing an increasingly important role in today's business world, academic research has strived to follow this trend by investigating their underlying causes and consequences. For a long time this research focused on the analysis of the financial effect of mergers & acquisitions as measured by market value or debt level. Thus, despite being a major vehicle of industry concentration and method of reallocation of resources, the technological impact of mergers & acquisitions remained comparatively underinvestigated for a long time. This, however, has changed in recent years. With the prevalence of the resource-based view and its derivates as the dominant logic in analysing today's knowledge-intensive industries the focus shifted towards the technological aspects of mergers & acquisitions. With both mergers & acquisitions and innovation being centrepieces of competitive strategies in the modern economy, it is of central importance to understand the consequences of mergers & acquisitions for the innovative potential of firms. After more than twenty years of research in this field, it is time to take stock of what we know about the technological impact of mergers & acquisitions and its determinants. The aim of this paper is to provide an overview of the respective research by performing a meta-analysis of the empirical studies in the field. The intuitive setup allows for a detailed analysis of the individual determinants while differentiating between the impact on innovation input and output. We identify the knowledge characteristics of the partnering firms as being essential to the technological success of mergers & acquisitions. Important implications for policy makers, practitioners and future research are derived. -- |
| Keywords: | Innovation,Mergers and Acquisitions |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:782013&r=sbm |
| By: | Dinh Thi Thanh Binh (Faculty of International Economics, Foreign Trade University); Le Minh Ngoc (Faculty of International Economics, Foreign Trade University); Nguyen Huu Thinh (Faculty of International Economics, Foreign Trade University); Bui Cao Khai (Faculty of International Economics, Foreign Trade University); Tran Duy Hung (Faculty of International Economics, Foreign Trade University); Nguyen Viet Duong (Faculty of International Economics, Foreign Trade University); Le Thi Thu Trang (Faculty of International Economics, Foreign Trade University) |
| Abstract: | This paper applies the ordinary least square regression model to estimate the effects of the human capital on the business performance of small and medium enterprises (SMEs) in Vietnam. We exploit the cross-sectional data of SMEs for the year 2009. The estimated results show that basic and professional education of the firm owner are important factors affecting the success of the firm. Further, experience in owning a business before can help the firm owners enhance their performance. Finally, knowledge from learning is seen to have a strong effect on entrepreneurial performance. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:0313&r=sbm |
| By: | Anna Zaytseva (Centre d'etudes de la vie politique, Universite Libre de Bruxelles); Olga Shuvalova (Research Fellow, Institute for Statistical Studies and Economics of Knowledge, Laboratory for Economics of Innovation); Dirk Meissner (Deputy Head, Laboratory for Science and Technology Studies, Institute for Statistical Studies and Economics of Knowledge, National Research University Higher School of Economics) |
| Abstract: | Innovations are commonly seen as resulting from the commercialization of new ideas and technological goods by dedicated organizations, especially firms. This conception is reflected in a producer-oriented approach to science, technology and innovation policy-making (STI). However a new understanding of the role of users within innovation processes is gradually taking shape, with profound policy implications. User innovations are often not based on technological improvement or R&D and remain largely under-estimated. Although there are many case studies of user innovators at the industry level, the role of users is not captured by general statistics on innovation. Up to now the only exception is the empirical evidence-based study of user innovation carried out in the UK in 2009. Recently it was complemented by empirical data from the USA and Japan. The present article aims to contribute to closing the gap of empirical data on user engagement into innovation activities at cross-country level. The analysis is based on the results from a national survey carried out in Russia in 2011. The findings contribute to the better understanding of user innovators profile and of the factors which underpin user innovator activities in the context of emerging economies. The article is organized as follows. The first section reviews the relevant literature on the user innovation concept and the main features of user innovations as compared to producer-generated innovations, as well as on the measurement of user innovators. The second section presents the research methodology and the main empirical results. Finally, the paper discusses some of main analytical and policy implications of the empirical findings |
| Keywords: | User Innovation, Innovation Sources, Open Innovation, Innovation Management, Demand Driven Innovation |
| JEL: | L21 M10 M14 M31 O21 O32 O33 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp08sti2013&r=sbm |
| By: | Eva Dettmann (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany); Iciar Dominguez Lacasa (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany); Jutta Guenther (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany and Friedrich Schiller University Jena Faculty of Economics, Carl-Zeiss-Str. 3, 07743 Jena, Germany); Bjorn Jindra (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany and Copenhagen Business School, Department of International Economics and Management, Solbjerg Plads 3, DK-2000 Frederiksberg, Denmark and University of Sussex, Science and Technology Policy Research (SPRU) Famer, Brighton, BN1 9SL, United Kingdompostion) |
| Abstract: | This paper analyses the determinants of spatial distribution of foreign technological activity across 96 German regions (1996-2009). We identify foreign inventive activity by applying the ‘cross-border-ownership concept’ to transnational patent applications. The descriptive analysis shows that foreign technological activity more than doubled during the observation period with persistent spatial heterogeneity in Germany. Using a pooled count data model, we estimate the effect of various sources for externalities on the extent of foreign technological activity across regions. Our results show that foreign technological activity is attracted by technologically specialised sectors of regions. In contrast to existing findings this effect applies both to foreign as well as domestic sources of specialisation. We show that the relation between specialization and foreign technological activity is non-linear and that it is influenced by sectoral heterogeneity. Externalities related to technological diversification attract foreign R&D only into ‘higher order’ regions. |
| Keywords: | foreign direct investment, technology, Europe, patent information |
| JEL: | O32 O33 R12 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:17sti2013&r=sbm |
| By: | Shandre M. Thangavelu (Asian Development Bank Institute (ADBI)); Aekapol Chongvilaivan |
| Abstract: | Does financial health shore up firm productivity? This paper empirically investigates this question and presents productivity as another driving factor in translating financial development into real economic progress. Our empirical framework employs Levinsohn and Petrin’s (2003) semi-parametric estimation of total factor productivity (TFP) using firm-level panel data during 2002–2008, and incorporates financial health variables into conventional determinants of firm productivity. Our findings suggest that liquidity and access to external credit boosts firm productivity, with the latter particularly imperative for exporting and/or importing firms. We also present supplementary results regarding economies of scale, high-tech capital accumulation, human capital investment and foreign ownership. |
| Keywords: | Financial health, firm productivity, Vietnam, TFP, panel data, Semiparametric Estimation |
| JEL: | O16 O25 O53 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:eab:microe:23638&r=sbm |