|
on Small Business Management |
| By: | María García-Vega; Elena Huergo |
| Abstract: | Firms are increasingly outsourcing their high-tech services. Theory suggests that R&D outsourcing allows firms to specialize in core knowledge-intensive tasks, thereby increasing innovation, but R&D outsourcing may also undermine internal capabilities. Our goal is to empirically assess the relative importance of these two possibilities, distinguishing between national and international R&D outsourcing and firms’ exporting status. We examine R&D purchases of more than 10,000 Spanish firms for the period 2004-2014. We show that R&D outsourcing improves firm innovation. Product innovation rises mostly with domestic outsourcing, while process innovation increases with both domestic and international R&D outsourcing. In addition, we find that international outsourcing provides an extra premium, mostly for exporters. Our results contribute to a better understanding of how firms organize the production of knowledge and innovation. |
| Keywords: | R&D outsourcing; transaction cost economics; innovation; international versus domestic outsourcing; exporters. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:18/10&r=sbm |
| By: | Martha Torres-Barreto (UIS - Universidad Industrial de Santander [Bucaramanga]); Marianela Briceño (Universidad Pontificia Bolivariana (UPB)); Mileidy Alvarez-Melgarejo |
| Abstract: | Product innovation is a widespread scheme of organizational innovation recognized by OECD (2005), hence the concept of innovation itself has driven much attention of many agendas as the Strategic European Research one (European Commision, 2013). In this artecle we develop an analytical model of the technological impact of public funding for private R&D activities in terms of product innovations achieved, to study if its differential effects among firms depend to some extent on firm´s resources and capabilities. This analysis is based on firm level data from the manufactory industry under the ESSE (Spanish survey for Firms Strategy), for the period 2000-2012. We identify the technological activities of 3350 Spanish firms, characterize their resources and capabilities and identify the most relevant ones regarding its influence on product innovation. We detect that both: public R&D funds and private investment help in the new product generation; but also, that the innovation capabilities and inter-firm cooperation positively affect the technological outcome. |
| Abstract: | La innovación de productos es un esquema generalizado de innovación organizacional reconocido por el Manual de Oslo, de ahí que el concepto de innovación ha atraído la atención de muchas agendas como Strategic European Research (European Commision, 2013). En este artículo se desarrolla un modelo analítico del impacto tecnológico del financiamiento público para actividades privadas de I + D en términos de innovaciones de producto logradas, para estudiar si sus efectos diferenciales entre empresas dependen en cierta medida de los recursos y capacidades de la empresa. Este análisis se basa en los datos a nivel de empresa de la industria de la manufactura bajo ESSE (encuesta española para estrategia de las empresas), para el período 2000-2012. Se identificaron las actividades tecnológicas de 3350 empresas españolas, se caracterizaron sus recursos y capacidades e identificaron las más relevantes en cuanto a su influencia en la innovación de productos. Se encontró que tanto los fondos públicos de I + D como la inversión privada ayudan en la generación de nuevos productos; pero también, que las capacidades de innovación y la cooperación inter-empresarial afectan positivamente el resultado tecnológico. |
| Keywords: | Capabilities,innovation,public funding,resources.,Capacidades, innovación, financiamiento público, recursos. |
| Date: | 2018–09–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01867121&r=sbm |
| By: | Emin M. Dinlersoz; Nathan Goldschlag; Amanda Myers; Nikolas Zolas |
| Abstract: | This paper reports on the construction of a new dataset that combines data on trademark applications and registrations from the U.S. Patent and Trademark Office with data on firms from the U.S. Census Bureau. The resulting dataset allows tracking of various activity related to trademark use and protection over the life-cycle of firms, such as the first application for a trademark registration, the first use of a trademark, and the renewal, assignment, and cancellation of trademark registrations. Facts about firm-level trademark activity are documented, including the incidence and timing of trademark registration filings over the firm life-cycle and the connection between firm characteristics and trademark applications. We also explore the relation of trademark application filing to firm employment and revenue growth, and to firm innovative activity as measured by R&D and patents. |
| JEL: | D22 L10 L21 L25 M30 O34 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25038&r=sbm |
| By: | Balakrishnan, VN; Mohamad Khan, Jamal Khan |
| Abstract: | Small and medium-sized enterprises (SME) of third-party logistics struggle to stay competitive and facing various pressure to stay competitive. One of the tactics to be competitive is to implement effective competitive measures. The purpose of this research was to explore the influential factors of competitive advantage on third-party logistics in Selangor Malaysia. Data collection included semi-structured questionnaires from 370 managers involved in logistics activities from the small and medium-sized enterprise manufacturing industries located in Selangor. Data analysis was used to identify key influential factors of competitive advantage progression. Correlation and regression analysis were conducted to test the research hypotheses. The results reflect that competitive measures needed extensive attention to stay competitive in the market. Thus, third-party logistics needs to cultivate competitive advantage knowledge and other competitive measures that will drive the third-party logistics service uniqueness. The findings may contribute to social change by helping small and medium-sized third-party logistics to improve their survival rate and to create their firm’s sustainable competitive capability and performance and as well provide solutions to challenges facing the third-party logistics. |
| Keywords: | Competitive strategy, network structure, information technology, competitive advantage, customer relationship management. |
| JEL: | D7 D8 D83 L1 L14 L21 L25 L26 M13 M31 |
| Date: | 2018–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89091&r=sbm |
| By: | Ouaida, Fadila; El Hajjar, Samer |
| Abstract: | The benefits of e-commerce are apparent not only for small and medium enterprises (SMEs) and large firms, but also for micro firms. Hence, implementing e-sales for micro firms is worth exploring. This study examines the relationship between the use of e-commerce and productivity implications on micro firms in France using Propensity Score Matching (PSM) for the year 2012. Data used in the analysis is based on community survey "ICT & e-commerce" for micro firms. The main objective of using PSM is to assess productivity between, on the one hand, e-selling micro firms and, on the other hand, the non e-selling micro firms. The empirical results show that e-selling micro firms are more productive and have a higher turnover in 2012. |
| Keywords: | ICT,E-commerce,micro firms,productivity,Propensity Score Matching |
| JEL: | L81 O30 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201866&r=sbm |
| By: | Ashish Arora; Wesley M. Cohen; Colleen M. Cunningham |
| Abstract: | We study how the inventive capability of a firm conditions its participation in a division of innovative labor. Capable firms are, by definition, able to invent; for them, external inventions substitute for their own R&D. However, external knowledge is an input into internal invention, and thus, more valuable to firms with inventive capability. Using a simple model of innovation and imitation, we explore how inventive capability affects a firm’s R&D investments, and thus whether and how it innovates, imitates, or does neither. Further, we study how these outcomes are conditioned by the supply of external knowledge as well as the supply of external inventions. In an advance over the literature, we treat firm inventive capability as unobserved, and use a latent class multinomial model to infer its value. Using a recent survey of product innovation and the division of innovative labor among US manufacturing firms, we find that high capability firms tend to use internal, rather than externally generated inventions, to innovate, and they use external knowledge to enhance their internal inventive activity. By contrast, lower capability firms are more likely to introduce “me-too” or imitative products, and when they innovate, are more likely to rely on external sources of inventions. Our findings suggest the successful pursuit of R&D-led growth depends both on firm inventive capability and the external knowledge environment. |
| JEL: | O31 O32 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25051&r=sbm |
| By: | Falk, Martin (Austrian Institute of Economic Research (WIFO)); Svensson, Roger (Research Institute of Industrial Economics (IFN)) |
| Abstract: | The aim of this paper is to provide new empirical evidence on the most crucial determinants of success for firms applying for public R&D grants. Previous studies have been limited to firm level data and mainly tested how firm characteristics affect the allocation of R&D grants. Thereby, they cannot differentiate between firms that have applied for grants but been rejected and firms that did not apply at all. Our contribution is that we use a detailed database of accepted and rejected R&D applications and also introduce several measures of quality indicators of R&D project applications. The estimates show that R&D projects that are assessed with good or very good ratings are significantly more likely to receive approval; particularly for innovative content and novelty as well as to expected additional impacts on R&D activities. In contrast to previous studies, most firm-level characteristics (R&D intensity, labor productivity, cash flow, industry affiliation) are not relevant, indicating that the R&D funding agency does not discriminate among different types of firms. Consequently, applicant firms should focus on radical, new and innovative ideas in their applications rather than on minor improvements. |
| Keywords: | Government R&D-funding; Business sector; Evaluation criteria |
| JEL: | H25 O32 O38 |
| Date: | 2018–09–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1231&r=sbm |
| By: | Kounetas, Kostas; Napolitano, Oreste; Stavropoulos, Spyridon; Burger, Martijn |
| Abstract: | Assessing regional convergence is an important issue both at the national and at the supranational level, such as the level of European regions. Regional convergence and productivity growth are also principles of the European regional policy. This paper studies regional productivity convergence among 232 NUTS-2 European regions for the period 2003-2011. Despite the European regional policies implemented in the last two decades, the technology gap between European regions has only increased. The objective of this paper is to provide new evidence on production efficiency and the technology gap in European regions. We present a two-stage model of regional productive performance using a meta-frontier framework and a PVAR analysis. The main conclusion is that there exist significant differences in productive performance that confirm the North-South division in Europe. Finally, the results from the PVAR model provide robust evidence for the role played by human capital and innovation activity through patent realization in the technology gaps at the regional level in Europe. |
| Keywords: | Metafrontier, DEA bootstrap, PVAR, Spillovers, European Regions. |
| JEL: | C15 D24 O47 R11 |
| Date: | 2018–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88957&r=sbm |
| By: | Nguyen Thi Thu Phuong (Centre for Analysis and Forecasting, Vietnamese Academy of Social Sciences); Laure Pasquier-Doumer (IRD, UMR DIAL, PSL, Université Paris-Dauphine) |
| Abstract: | Household business owners mainly rely on their social networks of strong ties to acquire resources in Vietnam. However, no consensus is found in the literature on the influence of strong ties on the performance of small firms in developing countries. Using an original set of qualitative data, this paper provides new evidence on the influence of social networks on household businesses by following a relational approach of the networks. It contributes to the literature by distinguishing the effects of social networks at different phases of the business cycle. It shows that, in the business creation process, strong ties are by far the preferred source of the initial capital as well as information supports. They shape the business at a small size and make it not adapted to rapid changes in the market demand and the technologies in the latter phase of business development. Weak ties are much less mobilized at the start of the business, but they provide a source of valuable information to create innovative businesses. The more the business grows, the higher is the strength of the weak ties. The study illustrates that the use of social networks, including the weak ties, should be understood to be embedded in family structures and local community contexts, with a set of duties and rights embedded in reciprocal relationships beyond not only the business interactions. Les entreprises informelles comptent principalement sur leurs réseaux familiaux pour acquérir des ressources au Vietnam. Cependant, aucun consensus ne se dégage de la littérature sur l’influence des liens forts sur la performance des petites entreprises dans le contexte des pays en développement. À l’aide d’un corpus d’entretiens original, cet article fournit un nouvel éclairage sur l’influence des réseaux sociaux dans le fonctionnement des petites entreprises. En suivant une approche relationnelle des réseaux, il contribue à la littérature en distinguant les effets des réseaux sociaux à des phases différentes du cycle de vie de l’entreprise. Il montre que les liens forts sont la source privilégiée pour obtenir le capital initial et les informations nécessaires dans le processus de création d’entreprise. L’usage des liens forts façonne l’entreprise en la conditionnant à une petite taille et la rendant inadaptée aux changements rapides de la demande et des technologies. Les liens faibles sont beaucoup moins mobilisés au début de l'entreprise, mais ils constituent une source d'informations précieuses pour créer des entreprises innovantes. Plus l'entreprise se développe, plus les liens faibles deviennent cruciaux. L’étude montre que l’utilisation des réseaux sociaux, y compris des liens faibles, est fortement incluse dans les structures familiales et les contextes communautaires locaux, qui supposent un ensemble de droits et de devoirs, notamment une réciprocité qui va au-delà des relations commerciales. |
| Keywords: | Social network, strength of ties, informal sector, Vietnam. |
| JEL: | L14 L26 O17 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:dia:wpaper:dt201813&r=sbm |
| By: | Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | This paper analyses the competitiveness of Austrian manufacturing industries by comparing the performance of Austrian firms with the Western European firms using recent estimates of TFP across Wider Europe (EU-28 plus Western Balkans) during the period 2007-2015. According to the TFP estimates, Austrian firms with larger turnovers, and less employment, in regions with less regional-industrial concentration of labour have become more competitive in terms of TFP. Using firm’s TFP and other characteristics aggregated by industries across Wider Europe, a gravity model for exports is estimated. Results show that larger trade across countries in the sample is driven by intra-firm trade, better efficiency of industries in terms of simple average of TFP growth of firms and more allocation of capital to more efficient firms. Comparing the actual values of exports from Austria to CESEE with the predicted values of the gravity model, I found that since 2012 excessive exports were directed to Western Europe rather than to CESEE. In a robustness check using unilateral exports value, these interesting findings also confirmed that a potential Austrian lock-in effect in the CESEE region reversed and trade diverged to the more competitive market of Western Europe. |
| Keywords: | firm performance, total factor productivity (TFP), gravity model, exports performance, lock-in effect |
| JEL: | D22 D24 F14 F15 F23 L25 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:151&r=sbm |
| By: | Hammarstedt, Mats (Linnaeus University Centre for Discrimination and Integration Studies); Miao, Chizheng (Linnaeus University Centre for Discrimination and Integration Studies) |
| Abstract: | We present a study of immigrant self-employment in Sweden using the recent matched employer-employee data from 2014. We find large variations in self-employment rates among immigrant groups as well as between immigrants with different points for their time immigration to Sweden. High self-employment rates are found for male immigrants from the Middle East. Immigrants are less likely than natives to have employees in their firms but after controlling for firm characteristics we find that self-employed immigrants are more likely than self-employed natives to have employees. Especially non-European immigrants are more likely than natives to employ other immigrants, and even non-European and recently arrived immigrants, in their firms. Immigrants are more likely than natives to hire their spouses as employees. We conclude that self-employed immigrants play a role in the labour market integration of other immigrants. We also conclude that the family plays a central role for self-employment activities among immigrants and that more knowledge regarding the explanations behind the results is needed. |
| Keywords: | Self-employment; Immigrants; Employment; Employees; Sweden |
| JEL: | F22 J21 J61 L26 |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1235&r=sbm |
| By: | Katalin Bodnár (Magyar Nemzeti Bank and European Central Bank); Ludmila Fadejeva (Latvijas Banka); Stefania Iordache (Banca Naţională a României); Liina Malk (Eesti Pank); Desislava Paskaleva (Българска народна банка); Jurga Pesliakaitė (Lietuvos Bankas); Nataša Todorović Jemec (Institute of Macroeconomic Analysis and Development of the Republic of Slovenia); Peter Tóth (Národná banka Slovenska); Robert Wyszyński (Narodowy Bank Polski) |
| Abstract: | We study the transmission channels for rises in the minimum wage using a unique firm-level dataset from eight Central and Eastern European countries. Representative samples of firms in each country were asked to evaluate the relevance of a wide range of adjustment channels following specific instances of rises in the minimum wage during the recent post-crisis period. The paper adds to the rest of literature by presenting the reactions of firms as a combination of strategies, and evaluates the relative importance of those strategies. Our findings suggest that the most popular adjustment channels are cuts in non-labour costs, rises in product prices, and improvements in productivity. Cuts in employment are less popular and occurs mostly through reduced hiring rather than direct layoffs. Our study also provides evidence of potential spillover effects that rises in the minimum wage can have on firms without minimum wage workers. |
| Keywords: | minimum wage, adjustment channels, firm survey. |
| JEL: | D22 E23 J31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:nbp:nbpmis:292&r=sbm |
| By: | Santos, Eleonora |
| Abstract: | The lack of a database that integrates a significant number of the variables necessary to empirically investigate the existence of externalities from FDI in Portugal represents an important limitation in this area. This paper presents a new balanced panel dataset with a total of 5,045 manufacturing firms (domestic and foreign) for the period 1995-2007. We use multiple imputation in Stata 13.0 to construct a large dataset containing several indicators taken from AMADEUS, Quadros do Pessoal, EU Klems and OCDE databases, that allow us to congregate variables that measure three dimensions: total factor productivity; foreign presence and factors that may influence the productivity of domestic firms, such as indicators of firm efficiency and R&D activities. Our panel dataset provides a set of useful 15 indicators for the analysis of externalities from FDI in 4,685 domestic manufacturing firms. We perform correlation analysis by technological groups based on Pavitt’s Taxonomy. Results indicate that the foreign presence is positively and significantly correlated with the TFP growth. Moreover, the sign and magnitude of the coefficients for the control variables indicate that concentration, the stock of foreign knowledge and the technological gap potentially assist the TFP growth of domestic firms, but only in some technological groups. |
| Keywords: | firm-level data, productivity, FDI Externalities, Portugal |
| JEL: | F23 O30 |
| Date: | 2017–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88959&r=sbm |
| By: | Källner, Emelie (Department of Industrial Economics and Management, KTH, The Royal Institute of Technology); Nyström, Kristina (The Ratio Institute) |
| Abstract: | This paper studies the entrepreneurial motivation and idea generation process of displaced employees. The empirical results are based on both quantitative (survey) and qualitative (interviews) data collected from displaced employees who decided to become entrepreneurs after the closure of R&D facilities of the pharmaceutical company AstraZeneca in Lund (2010) and Södertälje (2012), Sweden. The empirical findings show that the previous experience and expertise gained from AstraZeneca greatly influenced the idea generation process. Although the employees were affected by their job displacement, still 70 percent of the entrepreneurial activities could be regarded as opportunity-based, suggesting that many entrepreneurs are driven by a combination of push and pull motives. With regard to the timing of the idea generation process, about one third of the entrepreneurs came up with their business ideas before learning about the facility closures. Hence, in many cases, being affected by the displacement spurred the launch of ideas that already existed. |
| Keywords: | Entrepreneurship; firm closure; firm exit; entrepreneurship after displacement; entrepreneurial idea generation |
| JEL: | J63 L26 |
| Date: | 2018–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0311&r=sbm |
| By: | Banerjee, Ryan N. (Bank for International Settlements); Blickle, Kristian S. (Federal Reserve Bank of New York) |
| Abstract: | We observe significant heterogeneity in the correlation between changes in house prices and the growth of small firms across certain countries in Europe. We find that, overall, the correlation is far greater in Southern Europe than in Northern Europe. Using a simple model, we show that this heterogeneity may relate to financial frictions in a country. We confirm the model’s propositions in a number of empirical analyses for the following countries in Northern and Southern Europe: the United Kingdom, Norway, France, Italy, Spain, and Portugal. Small firms in countries with higher financial frictions (for example, places where bankruptcy resolution is more difficult and/or takes longer) see a greater dependence on “stable” real estate collateral. This is most pronounced for opaque (for example, very young) firms. Through an extension to our model and our choice of specification, we show that our findings are most consistent with a collateral-value-based credit supply channel and rule out a consumer-driven demand effect. |
| Keywords: | firm financing; real estate collateral; credit supply; bankruptcy laws; financial frictions |
| JEL: | G30 G33 K11 O47 R30 |
| Date: | 2018–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsr:868&r=sbm |
| By: | Benos, Nikos; Tsiachtsiras, Georgios |
| Abstract: | In this paper we use country panel data to explore the effect of innovation on top income inequality. We construct a novel dataset of patents by combining patents from USPTO and EPO to test the effect of innovation on income inequality. We demonstrate that innovation has a strong positive correlation with top income shares. Also, we find weak evidence that innovation has a negative effect on overall income inequality. We support our findings by using instrumental variables to tackle endogeneity. In addition our IV analysis shows that the effect of innovation on top income shares remains significant for 3 years. Finally, we show that innovation has a less strong effect on top income inequality when we include defensive patents in the analysis. |
| Keywords: | top income inequality, overall inequality, innovation, citations, defensive patents |
| JEL: | D63 O30 O31 O33 O34 O40 O47 |
| Date: | 2018–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89217&r=sbm |
| By: | Kede Ndouna, Faustine; Tsafack Nanfosso, Roger |
| Abstract: | This study aim is to identify, according to microeconomic approach, the determinants of the performance of individual entrepreneurs in the informal sector in Cameroon, through their units performance. Using the Second Survey in the Informal sector and Employment (SSIE) collected in 2010 in Cameroon, we made two regressions of a profit function of an entrepreneur with the method of multiple regressions after a statistic analysis of some characteristics that influence entrepreneur performance in the informal activities. After this analysis, some lessons emerge. First, there are significant gaps in the income generated by informal activities. Then, the impact of factors that can improve the performance of entrepreneurs varies widely depending on the measurement used to capture their performance (sales or income). Finally, individual factors such as education level, seniority, specific experience in entrepreneurship and the time spent on the job significantly increase the performance of informal entrepreneurs. Similarly, the factors of the firm (sector of activity, level of capital, number of permanent employees) exception due to the age of the firm, also significantly improve the performance of informal entrepreneurs better than the individual factors (27% against 15%). However, the main factor that reduce their performance are the economic environment (difficulties in accessing to infrastructure and finance). This could be explained by the fact that, operating in the informal sector, reduce access to financial services and public infrastructures. Several recommendations can be made in line with the improvement of informal entrepreneurship and access to financial services, in order to build strong entrepreneurship in developing countries. |
| Keywords: | Informal Entrepreneur, individual characteristics, firm characteristics, environmental characteristics, entrepreneurial performance. |
| JEL: | C30 L26 O17 |
| Date: | 2017–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88665&r=sbm |
| By: | OCDE |
| Abstract: | La Vision 2020 – Stratégie de développement touristique du Maroc fixe des objectifs ambitieux pour le développement des entreprises touristiques. L’élaboration d’une politique de clusters de tourisme vise à appuyer la mise en œuvre de la politique du tourisme aux niveaux régional et local en s’adossant au processus en cours de régionalisation avancée. Il s’agit notamment d’inciter les entreprises du secteur à coopérer davantage au sein d’une destination, à dialoguer avec les différents acteurs impliqués dans la chaine de valeur du tourisme (tourisme, artisanat, économie sociale et solidaire, agriculture, universités, autorités locales), à innover via différentes expérimentations et à se mettre en réseau.Le rapport met en avant des bonnes pratiques internationales et présente la mise en place d’un cluster tourisme « Art de vivre marocain » dans la région de Marrakech-Safi. L’objectif est de favoriser l’innovation et la coopération entre les acteurs du tourisme, de l’artisanat et de l’économie sociale et solidaire, et de permettre un développement du tourisme plus inclusif sur le territoire et avec les communautés locales. Le rapport émet plusieurs recommandations pour appuyer la mise en œuvre du cluster de tourisme dans la région de Marrakech-Safi, pour en évaluer les impacts, mais aussi pour encourager le développement de clusters de tourisme dans d’autres régions du Maroc. |
| Date: | 2018–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaad:2018/01-fr&r=sbm |
| By: | Baum, Christopher F.; Lööf, Hans; Stephan, Andreas |
| Abstract: | STEM-focused industries are critical to the innovation-driven economy. As many firms are running short of STEM workers, international immigrants are increasingly recognized as a potential for high-tech job recruitment. This paper studies STEM occupations in Sweden 2011–2015 and tests hypotheses on new recruitment and the economic impact of foreign STEM workers. The empirical analysis shows that the probability that a new employee is a STEM immigrant increases with the share of STEM immigrants already employed, while the marginal effect on average firm wages is positively associated with the share of immigrant STEM workers. We also document heterogeneity in the results, suggesting that European migrants are more attractive for new recruitment, but non-EU migrants have the largest impact on wage determination. |
| Keywords: | STEM,migration,employment,wages,correlated random effects |
| JEL: | C23 J24 J61 O14 O15 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:257&r=sbm |
| By: | Alexandra López Cermeño (Lund University) |
| Abstract: | "This paper explores the impact of new universities established in the United States between 1930-2010. Differences in differences analysis on a sample of counties selected through propensity score matching enables the assessment of the impact of these universities on GDP, population, and different scales of market size. Evidence suggests that hosts of new universities grew around 20 per cent more, and the effect expanded to the nearby areas. Controlling for research quality and infrastructures shows that new cultural amenities generate growth that expands to nearby areas through the agglomeration of population but only during the short run." |
| Keywords: | "Economic Geography, Spillovers, Universities, United States" |
| JEL: | L8 N72 R12 I23 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:ehs:wpaper:17016&r=sbm |
| By: | Shai Bernstein; Emanuele Colonnelli; Davide Malacrino; Timothy McQuade |
| Abstract: | New firm formation is a critical driver of job creation, and an important contributor to the responsiveness of the economy to aggregate shocks. In this paper we examine the characteristics of the individuals who become entrepreneurs when local opportunities arise due to an increase in local demand. We identify local demand shocks by linking fluctuations in global commodity prices to municipality level agricultural endowments in Brazil. We find that the firm creation response is almost entirely driven by young and skilled individuals, as measured by their level of experience, education, and past occupations involving creativity, problem-solving and managerial roles. In contrast, we find no such response within the same municipalities among skilled, yet older individuals, highlighting the importance of lifecycle considerations. These responsive individuals are younger and more skilled than the average entrepreneur in the population. The entrepreneurial response of young individuals is larger in municipalities with better access to finance, and in municipalities with more skilled human capital. These results highlight how the characteristics of the local population can have a significant impact on the entrepreneurial responsiveness of the economy. |
| JEL: | E26 J24 L26 O12 O13 O17 O20 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25112&r=sbm |
| By: | Michał Gradzewicz (Narodowy Bank Polski and Warsaw School of Economics) |
| Abstract: | The aim of the study is to investigate the firm-level relationship between investment spikes and subsequent productivity developments. We used census data of Polish firms with employment above 9 persons, we measured investment spike and constructed a control sample for comparison. We showed various performance indicators before and after investment spike. We tested for the effects of a spike using generalized difference-in-difference models. The results suggest different effects for SMEs and larger companies. In smaller firms investment spike is associated with subsequent sales and employment expansion and lagged labor productivity rise, consistently with learning-by-doing model. TFP of smaller firms falls directly after a spike and only gradually rises thereafter. In larger firms investment spike also result in expansion of sales, but labor productivity is not improving relative to control group, despite a drop of employment. Moreover, capital deepening of larger firms results in significantly lower TFP, both in absolute and relative terms. |
| Keywords: | investment spike, productivity, TFP, efficiency, firm-level data, difference-in-difference |
| JEL: | D22 D24 L16 O3 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:nbp:nbpmis:291&r=sbm |
| By: | Pureta, Igor; Pureta, Tanja |
| Abstract: | Entrepreneurial orientation is a tendency of businesses to act autonomously and innovative, take risks and is taking proactive initiatives to potential market conditions There is a positive relationship between entrepreneurial orientation and business performance of the company. Although the entrepreneurial orientation commonly referred to as a feature the company and not the individual, since the people are supporting tasks within business, there are defined characteristic behaviors that define the entrepreneurial orientation of individuals. This behavior have so far examined the entrepreneurs, not the employees. This paper aims to determine the extent to which employees in the organization have developed entrepreneurial behavior (vision of their own areas of responsibility development, goal setting needed to achieve the vision, planning of specific activities, actively seeking information, persistence in its realization in spite of obstacles and actively seeking feedback about own performance), and whether employees with more developed entrepreneurial behavior more represented in private companies or in the public sector, and if they have intention to found their own company. |
| Keywords: | entrepreneurial orientation, entrepreneurial behavior, proactivity |
| JEL: | J5 J50 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89208&r=sbm |
| By: | J. Daniel Kim |
| Abstract: | This paper investigates the effectiveness of startup acquisitions as a hiring strategy. Unlike conventional hires who choose to join a new firm on their own volition, most acquired employees do not have a voice in the decision to be acquired, much less by whom to be acquired. The lack of worker agency may result in a preference mismatch between the acquired employees and the acquiring firm, leading to elevated rates of turnover. Using comprehensive employee-employer matched data from the US Census, I document that acquired workers are significantly more likely to leave compared to regular hires. By constructing a novel peer-based proxy for worker preferences, I show that acquired employees who prefer to work for startups – rather than established firms – are the most likely to leave after the acquisition, lending support to the preference mismatch theory. Moreover, these departures suggest a deeper strategic cost of competitive spawning: upon leaving, acquired workers are more likely to found their own companies, many of which appear to be competitive threats that impair the acquirer’s long-run performance. |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:18-41&r=sbm |
| By: | Andam, Kwaw S.; Ragasa, Catherine R.; Asante, Seth |
| Keywords: | Food Safety and Nutrition, International Development, Food and Agricultural Policy Analysis |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:273890&r=sbm |
| By: | Michelle Dell’Era; Luca David Opromolla; Luís Santos-Pinto |
| Abstract: | This paper studies the impact of optimism on occupational choice using a general equilibrium framework. The model shows that optimism has four main qualitative effects: it leads to a misallocation of talent, drives up input prices, raises the number of entrepreneurs, and makes entrepreneurs worse off. We calibrate the model to match U.S. manufacturing data. This allows us to make quantitative predictions regarding the impact of optimism on occupational choice, input prices, the returns to entrepreneurship, and output. The calibration shows that optimism can explain the empirical puzzle of the low mean returns to entrepreneurship compared to average wages. |
| Keywords: | General Equilibrium; Entrepreneurship; Optimism |
| JEL: | D50 H21 J24 L26 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp0502018&r=sbm |
| By: | Lily Fang; Josh Lerner; Chaopeng Wu; Qi Zhang |
| Abstract: | Governments are important financiers of private sector innovation. While these public funds can ease capital constraints and information asymmetries, they can also introduce political distortions. We empirically explore these issues for China, where a quarter of firms’ R&D expenditures come from government subsidies. Using a difference-in-differences approach, we find that the anticorruption campaign that began in 2012 and the departures of local government officials responsible for innovation programs strengthened the relationship between firms’ historical innovative efficiency and subsequent subsidy awards and depressed the influence of their corruption-related expenditures. We also examine the impact of these changes: subsidies became significantly positively associated with future innovation after the anti-corruption campaign and the departure of government innovation officials. |
| JEL: | G28 H25 O32 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25098&r=sbm |
| By: | Link, Albert (University of North Carolina at Greensboro, Department of Economics); Hobbs, Kelsi (University of North Carolina at Greensboro, Department of Economics); Shelton, Terri (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | This paper focuses on the regional economic impacts of U.S. university research and science parks. Motivating this focus is the fact that the landscape for private-sector research is changing, and future research might well emphasize America’s “new geography of innovation.” Thus, university research and science parks might face, if they are not already doing so, pressure to retain current tenants and competition for future tenants. We find that only 11 of 146 research and science parks in the United States have, in the spirit of public accountability, conducted an economic impact study. One reason for the paucity of such studies is that universities are unfamiliar about how to conduct as well as how to interpret the findings from such a study. We offer an economic impact method for park administrators to follow if they proceed to document the regional economic impact of their park. |
| Keywords: | University research and science park; Public accountability; Economic impact |
| JEL: | H43 H54 O32 |
| Date: | 2018–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2018_007&r=sbm |