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on Small Business Management |
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Issue of 2018‒09‒24
twenty papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Corinne Autant-Bernard (Univ Lyon, UJM Saint-Etienne, GATE UMR 5824, F-42023 Saint-Etienne, France); James P. LeSage (Fields Endowed Chair in Urban and Regional Economics, McCoy College of Business Administration, Texas State University, San Marcos, Texas 78666) |
| Abstract: | Past literature has used conventional spatial autoregressive panel data models to relate patent production output to knowledge production inputs. However, research conducted on regional innovation systems points to regional disparities in both regions ability to turn their knowledge inputs into innovation and to access external knowledge. Applying a heterogeneous coefficients spatial autoregressive panel model, we estimate region-specific knowledge production functions for 94 NUTS3 regions in France using a panel covering 21 years from 1988 to 2008 and 4 high-technology industries. A great deal of regional heterogeneity in the knowledge production function relationship exists across regions, providing new insights regarding spatial spillin and spillout effects between regions. |
| Keywords: | knowledge production, spatial econometrics, region-specific parameters |
| JEL: | C21 O31 O52 R12 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1814&r=sbm |
| By: | Carlo Menon; Timothy DeStefano; Francesco Manaresi; Giovanni Soggia; Pietro Santoleri |
| Abstract: | The report provides an independent and comprehensive evaluation of the economic and social impact of the Italian policy framework for innovative start-ups, also known as the “Start-up Act”, first introduced by the Decree-law 179 in 2012. The policy aims at creating a more favourable environment for small innovative start-ups through a number of complementary instruments, including “fast-track” and zero cost incorporation, simplified insolvency procedures, tax incentives for equity investments, and a public guarantee scheme for bank credit. While the report focuses only on Italy, the “Start-up Act” can be seen as a very useful “laboratory” to inform policies for innovative entrepreneurship across OECD member countries. The evaluation highlights that the impact of the policy on beneficiary firms has been positive overall, but that complementary policy actions in other areas are required in order to further realise the full potential of Italian innovative start-ups. |
| Date: | 2018–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:54-en&r=sbm |
| By: | Erkko Autio (Imperial College London); Laszlo Szerb (University of Pecs); Eva Komlosi (University of Pecs); Monika Tiszberger (University of Pecs) |
| Abstract: | During the last decade digitisation has transformed the character of entrepreneurial activities as for both the entrepreneurial opportunities and the practices to pursue them. In this context, to ensure that the new productivity potential is fully deployed to the benefits of economic growth and societal welfare, policymakers need adequate metrics to monitor digital entrepreneurship. The measurement challenge of the digital entrepreneurship lays in the pervasive nature of the phenomenon itself that cannot be captured by count-based measures of individual-level entrepreneurial action. Therefore it becomes important to monitor the conditions which set the business context of entrepreneurs in the different EU countries. The European Index of Digital Entrepreneurship Systems (EIDES) addresses the measurement challenge by appraising the framework and systemic conditions for 1. stand-up, 2. start-up, and 3. scale-up activities in the EU28 countries. Furthermore, the EIDES also attempts to disentangle the digital component of the just-mentioned entrepreneurial conditions and stages of development. |
| Keywords: | entrepreneurial ecosystem, digital entrepreneurship, startups, innovation, high-growth companies, policy support to innovation |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc112439&r=sbm |
| By: | Young-Hyun Jin (Korea Institute of S&T Evaluation and Planning (KISTEP)); Chang-Dae Park (Korea Institute of S&T Evaluation and Planning (KISTEP)) |
| Abstract: | Korean government has established innovation-supporting facilities in the outside of national capital region. The so-called ?Regional R&D Centers? are equipped with R&D equipment and aim to support R&D activities of the small and medium sized enterprises in the nearby regional industry cluster. Since 2006, more than 582 facilities have been established using more than 10 billion USD. However, there are many debates on the efficacy of the regional R&D centers. In this study, we analyzed the success factors of the selected regional R&D centers using DEA and tobit regression. To measure the efficiency of the regional R&D centers using DEA, we selected budget invested, man-power and operation duration as the input variables and the number companies who utilized the facilities, number of utilization and awareness among the cluster as the output variables. The results showed that the efficiency of the regional R&D centers depends on the types of the host institute of the regional R&D center. We tested the relationship between the efficiency measured by DEA and factors in the planning and operation stages of the centers and environmental factors like GRDP. The tobit analysis showed that the number of partner institutes has strong positive influence to the efficiency in all the efficiency models. The location and support of operational expenses also showed positive influence in some models. The policy implication as well as detailed analysis procedure and results will be discussed in the presentation. |
| Keywords: | regional innovation-supporting facility, DEA, tobit regression, success factor analysis |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:6409236&r=sbm |
| By: | Iwasaki, Ichiro; Kim, Byung-Yeon |
| Abstract: | In this paper, we trace the survival status of more than 110,000 Russian firms in the years of 2007–2015 and examine the determinants of firm survival across periods of economic crisis and growth. Applying the Cox proportional hazards model, we find that the effects of some variables regarded as key determinants of firm survival are not always robust across business cycles. Among the variables that constantly affect firm survival across business cycles and industries, concentration of ownership, the number of board directors and auditors, firm age, and business network are included. By contrast, the effects of some ownership-related variables on firm survival vary depending on the nature of economic recessions such as a global crisis and a local one. There is also evidence that an international audit firm increases the probability of firm survival; however, gaps in the quality between international audit firms and those from Russia decrease over time. These findings suggest that one should not make hasty generalizations regarding the determinants of firm survival by looking at a specific economic period or industry. |
| Keywords: | Firm failure, Economic crises and growth, Cox proportional hazards model, Russia |
| JEL: | D22 G01 G33 G34 P34 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:hit:rrcwps:76&r=sbm |
| By: | Diaz, Juan Jose (GRADE); Chacaltana, Juan (ILO International Labour Organization); Rigolini, Jamele (World Bank); Ruiz, Claudia (ILO International Labour Organization) |
| Abstract: | Too often, academics and policy makers interpret formality as a binary choice and formalization as an irreversible process. Yet, formalization has many facets and shades on the business and labor fronts, and firms may not be able or willing to formalize all at once. This paper explores the joint process of business and labor formalization, using a unique panel data set of Peruvian micro enterprises. The paper finds that business formality does not imply labor formality, and vice versa. Further, there is significant churning in and out of different dimensions of formality within a relatively short period. Using an instrumental variable approach, the paper infers that business formalization affects labor formalization but not the other way around, and that enforcement is a key driver of formalization. Overall, the analysis shows that formalization is a gradual and reversible process, with small entrepreneurs weighing their possibilities in each pathway to business (often) or labor (less often) formalization, but rarely both at the same time. |
| Keywords: | informality, business formalization, labor formalization, small enterprises |
| JEL: | O17 O12 D21 L26 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11750&r=sbm |
| By: | Faisal Buyinza; Anthony Tibaingana; John Mutenyo |
| Abstract: | This article investigates the factors affecting access to formal credit by micro and small enterprises in Uganda using the Gender Enterprise Survey that was funded by the IDRC. The study employed a probit model. The findings show that firm sales, owner's education level, belonging to a business association, belonging to business group, use of internet, owning a personal and business bank account, and gender of the owner are positively associated with access to formal credit. We also find that experienced firms are less likely to apply for credit hence reduce the probability to receive formal bank credit. Our results provide insights on the existing gaps in designing supportive policies for micro and small enterprise to enable them increase their access to credit especially from the formal financial institutions. |
| Keywords: | Credit constraint, micro and small enterprises, sample selection, Uganda |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:ico:wpaper:83&r=sbm |
| By: | Messaoud Zouikri; Mounir Amdaoud |
| Abstract: | This paper addresses an hypothesis on the contribution of the external capabilities to the birth of the innovation activity within the firm. The econometric analysis conducted on a sample of Algerian manufacturing entreprises, allowed to highlight four robust results which remain significant and stable after adjustment by various indicators. The main result is that the development of different firm capabilities was not exclusively originated from an edogenous effort, but also induced by an exogenous shock resulting from participating to the upgraded firms' program financially supported by the Algerian government and the European Union. Furthermore, the improvement of human resources competencies, the use of ICT and the compliance to performance criteria explain significantly firm engagement differences in the product innovation activity. The R&D and firm size as traditional factors seem not to be significant predictors of innovation capacity in the present case. |
| Keywords: | external capabilities, innovation capacity, human capital, Algerian manufacturing industry, recursive equation system |
| JEL: | O32 D22 C34 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2018-37&r=sbm |
| By: | Ufuk Akcigit; John Grigsby; Tom Nicholas; Stefanie Stantcheva |
| Abstract: | This paper studies the effect of corporate and personal taxes on innovation in the United States over the twentieth century. We use three new datasets: a panel of the universe of inventors who patent since 1920; a dataset of the employment, location and patents of firms active in R&D since 1921; and a historical state-level corporate tax database since 1900, which we link to an existing database on state-level personal income taxes. Our analysis focuses on the impact of taxes on individual inventors and firms (the micro level) and on states over time (the macro level). We propose several identification strategies, all of which yield consistent results: i) OLS with fixed effects, including inventor and state-times-year fixed effects, which make use of differences between tax brackets within a state-year cell and which absorb heterogeneity and contemporaneous changes in economic conditions; ii) an instrumental variable approach, which predicts changes in an individual or firm's total tax rate with changes in the federal tax rate only; iii) a border county strategy, which exploits tax variation across neighboring counties in different states. We find that taxes matter for innovation: higher personal and corporate income taxes negatively affect the quantity, quality, and location of inventive activity at the macro and micro levels. At the macro level, cross-state spillovers or business-stealing from one state to another are important, but do not account for all of the effect. Agglomeration effects from local innovation clusters tend to weaken responsiveness to taxation. Corporate inventors respond more strongly to taxes than their non-corporate counterparts. |
| JEL: | H24 H25 H31 J61 O31 O32 O33 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24982&r=sbm |
| By: | Kang, Dongwoo; Dall'Erba, Sandy; Peng, Kun |
| Keywords: | Productivity Analysis, Production Economics, Resource/Energy Economics and Policy |
| Date: | 2017–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258285&r=sbm |
| By: | Andonova Elena; Boden Mark; Cetl Vlado; Diukanova Olga; Dosso Mafini; Dusart Jean; Gkotsis Petros; Gnamus Ales; Kleibrink Alexander; Kotsev Alexander; Lavalle Carlo; Mandras Giovanni; Matusiak Monika (European Commission - JRC); Radovanovic Nikola; Rainoldi Alessandro; Slavcheva Milena; Veskovic Miroslav; Hollanders Hugo; Ndubuisi Gideon; Owusu Solomon; Radosevic Slavo |
| Abstract: | The Western Balkan region has significantly improved in terms of innovation performance in the last ten years. However, in catching up with other European regions, the focus of innovation efforts should be enhanced. Exports are still far more focused on medium- and low-technology products. Innovative efforts mostly accommodate traditionally strong sectors, which do not necessarily reflect the ideal competitiveness paths for economies in the region. Although some Western Balkan economies record increases in patent activity, patent intensity in the region is still low, while, on the other hand, scientific publication production displays a stable growth trend. While Western Balkan economies are at different stages in the formation of research and innovation (R&I) policy governance systems, national research and innovation policy frameworks are continuously being improved. The enhancement of governance in the area of R&I came as the result of increased capacity building activities in the region, as well as of the real needs emerging as a result of social and economic transformation. On the other hand, R&I systems in the Western Balkan economies need to continue shifting their focus towards businesses to provide better balance between public and private sector orientation. The Joint Research Centre of the European Commission is committed to supporting the shift in innovation policies and improvement of R&I efforts and governance in the Western Balkan economies through a number of tools and activities, allowing policy instruments to be matched with the specific needs of the economy. This approach seeks efficient governance mechanisms for R&I policy by reaching out to the business sector and other important actors of the innovation ecosystem. It determines sustainable development directions for economies and ensures the continuity of policy monitoring and evaluation cycles. This ambitious challenge is translated into four specific lines of activity: (i) the application of the smart specialisation methodology to design and implement innovation strategies; (ii) capacity-building activities for technology transfer, in particular through specialised workshops, tools and instruments specifically designed to assist the academic institutions in the regional economies; (iii) support to transnational collaboration and linkages in the context of EU macro-regional strategies; and (iv) data quality enhancement. The analysis of the development potential of the Western Balkan region in terms of economic, innovative and scientific capabilities in this report is supported with the good practices addressing specific challenges in the region. |
| Keywords: | Western Balkans, innovation policy, smart specialisation, enlargement |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc111430&r=sbm |
| By: | Dai, R.; Mookherjee, D.; Munshi, K.; Zhang, X. |
| Abstract: | This paper identifies and quantifies the role played by birth-county-based community networks in the growth of private enterprise in China. We develop a network-based model that generates predictions for the dynamics of firm entry, concentration, and firm size across birth counties with varying social connectedness (measured by population density). These predictions are verified over the 1990-2009 period with administrative data covering the universe of registered firms. Competing non-network-based explanations can explain some, but not all, of the results. Moreover, supplementary evidence indicates that network spillovers occur within the birth county and, going down even further, within clans within the county. Having validated the model, we estimate its structural parameters and conduct counter-factual simulations, which estimate that entry over the 1995-2004 period would have been 40% lower (with a comparable decline in the stock of capital) in the absence of community networks. Additional counter-factual simulations shed light on misallocation and industrial policy in economies where networks are active. |
| Keywords: | Community Networks, Entrepreneurship, Misallocation, Institutions, Growth and Development. |
| JEL: | J12 J16 D31 I3 |
| Date: | 2018–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1850&r=sbm |
| By: | Matthias Kehrig (Duke University) |
| Abstract: | This paper considers the reallocation of financial funds across establishments within a firm for investment purposes. A new metric is constructed that contrasts investment needs with financial means at the establishment and firm levels. Within a firm, some establishments are net contributors to financial means for investment purposes while others receive funds in order to invest. Both financial reallocation between firms and reallocation across establishments within firms are strongly countercyclical. But within-firm reallocation is about six times as high as the between-firm analogue and also more volatile. The evidence suggests that internal capital markets are an important determinant in a firm's investment policies. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed018:1225&r=sbm |
| By: | Snyder, Jason E.; Tschirley, David L.; Reardon, Thomas A. |
| Keywords: | Agribusiness, International Development, Agricultural and Food Policy |
| Date: | 2017–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258410&r=sbm |
| By: | Mehmet Basar (Anadolu University) |
| Abstract: | Today, as a result of the knowledge economy, universities are focusing more on creating commercial knowledge along with their primary tasks ? education and research. Increasing demand for university-industry collaboration, universities? new roles in the economic development through technology transfer, and commercialization of knowledge are among the major factors that lead to concepts such as ?entrepreneurial university? and ?academic entrepreneur?. Academic entrepreneurship is actually a wider concept that covers all the efforts and activities toward the commercialization of the scientific research outputs of the universities and their industrial partners.In Turkey, Supreme Council for Science and Technology supports academic entrepreneurship activities and encourages potential academic entrepreneurs through various support mechanisms. However, there are many problems that academic entrepreneurs encounter and this study aims to discuss possible solutions for these problems and obstacles. |
| Keywords: | Entrepreneurial University, Academic Entrepreneur |
| JEL: | L26 L31 I00 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:6409288&r=sbm |
| By: | Julio Elías; Gustavo Ferro |
| Abstract: | How does the process of applying knowledge to the economy work? How do people innovate? What is inside the innovation black box? Can the process be stylized? We apply an economic approach to creativity which provides a general analytical framework to innovation to answer these questions by distinguishing two types of innovations: conceptual and experimental. The development of quality wines which in Argentina began in the 1990s was a process that involves both types of innovations. We analyze two cases of successful winemakers and we characterize their process of innovations to derive lessons with potential managerial and public policy implications. Resumen: ¿Cómo funciona el proceso de aplicar conocimiento a la economía? ¿Cómo innova la gente? ¿Qué hay dentro de la caja negra de la innovación? ¿Cómo puede estilizarse el proceso? Aplicamos un enfoque económico de la creatividad que provee un marco analítico generalpara responder estas preguntas, distinguiendo dos tipos de innovaciones: conceptuales y experimentales. El desarrollo de los vinos de alta calidad en Argentina comenzó en los 1990s y fue un proceso que tuvo ambos tipos de innovaciones. Analizamos dos casos de bodegueros exitosos y caracterizamos sus procesos de innovación para derivar lecciones con potenciales implicaciones gerenciales y de política pública. |
| Keywords: | Innovation, Wine industry, Argentina |
| JEL: | O31 Q13 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:cem:doctra:651&r=sbm |
| By: | Julián Andrés Galindo Yepes (Universidad Industrial de Santander - UIS); Edna Bravo Ibarra (Universidad Industrial de Santander - UIS) |
| Abstract: | This research presents the body of a systematic literature review on Living Labs. Based on a review of the Scopus database and the analysis of the 53 most cited articles, we can be conclude that the research and development of the Living Labs concept has been taken off since 2006 and to date, in terms of quality and academic impact, remains insignificant The review of Living Labs requires to be identified in the scientific literature: 17 definitions, 20 concepts, 4 predecessors, 5 elements, 7 characteristics, 4 types, 4 archetypes, 20 benefits, 3 streams, 3 levels and 17 roles of innovation intermediaries. This study identified three methodologies that allow us to understand the methodological processes for the creation of Living Labs from the quasi-experimental perspective, the innovation phases and the development of the projects-based in ICT. The information contained in this literature review allows us to understand the evolution of the theoretical concept of Living Labs over time, as well as the variables that intervene in the characterization of these innovation ecosystems from the open innovation approach. |
| Keywords: | Living Labs ? Open Innovation ? Literature Review - Innovation |
| JEL: | O31 O32 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:6408980&r=sbm |
| By: | Pietro Moncada-Paterno-Castello (European Commission - JRC); Hector Hernandez (European Commission - JRC) |
| Abstract: | More than a quarter of the industrial investment in global R&D is made by EU companies. In the last decade EU companies have increased their specialisation in medium-tech sectors, with a significant R&D share increase in the Automobile sector and a decrease in the Aerospace & Defence sector. EU shows an insufficient number of companies and a small number of global players in key (high-tech) sectors such as Biotechnology, Software and IT hardware. Conversely, competing economies are much stronger in these newer high-tech sectors and have maintained and even reinforced such strength. The high-tech innovation-led competitiveness of some countries has benefitted from proactive industrial policies which have supported targeted sectors and markets. Clear examples are those of the USA, South Korea and China. Promising undertakings are proposed by the European Commission to foster industrial competitiveness, innovation and technological leadership, also addressing the EU private investment gap in R&I. Industrial dynamics at company level provide insights into policy strategies to strengthen EU corporate R&D and to improve the competitiveness of innovation-driven industries. |
| Keywords: | Industrial R&D, EU innovation policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc112653&r=sbm |
| By: | CHANITA PANMANEE (Faculty of Economics, Maejo University); KASEM KUNASRI (Faculty of Management science, Chiang Mai Rajabhat University) |
| Abstract: | This research aims to evaluate the entrepreneurial competencies of longan processing entrepreneurs and analyze the impacts of entrepreneurial competencies on new product development decision. The 165 samples of longan processing entrepreneurs are selected by a purposive sampling method. The results of entrepreneurial competencies show that risk taking orientation and competitiveness orientation are the two lowest score competencies in which the longan processing entrepreneurs should be interested in. Moreover, the age of the entrepreneur and pro-activeness orientation of the entrepreneur have some negative impacts on the decision making probability of the new product development. The entrepreneurial competencies on risk taking, innovativeness and competitiveness have positive influences on new product development decision. The findings lead to a discussion about whether the longan processing entrepreneurs are ready to develop the new product, or not. |
| Keywords: | longan processing, entrepreneurial competencies, product development, composite index, logit model |
| JEL: | C25 M21 Q13 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7208736&r=sbm |
| By: | Li, Yajuan; Palma, Marco A.; Towne, Samuel |
| Keywords: | Consumer/Household Economics, Health Economics and Policy, Institutional and Behavioral Economics |
| Date: | 2017–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258399&r=sbm |