|
on Small Business Management |
| By: | Aghion, Philippe (Birkbeck College, University of London); Bergeaud, Antonin (CEP, London School of Economics); Van Reenen, John (MIT Sloan School of Management) |
| Abstract: | Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable endogenous growth model with size-contingent regulations. We apply this to population administrative firm panel data from France, where many labor regulations apply to firms with 50 or more employees. Nonparametrically, we find that there is a sharp fall in the fraction of innovating firms just to the left of the regulatory threshold. Further, a dynamic analysis shows a sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold. We then quantitatively fit the parameters of the model to the data, finding that innovation at the macro level is about 5.4% lower due to the regulation, a 2.2% consumption equivalent welfare loss. Four-fifths of this loss is due to lower innovation intensity per firm rather than just a misallocation towards smaller firms and lower entry. We generalize the theory to allow for changes in the direction of R&D, and find that regulation's negative effects only matter for incremental innovation (as measured by citations and text-based measures of novelty). A more regulated economy may have less innovation, but when firms do innovate they tend to "swing for the fence" with more radical (and labor saving) breakthroughs. |
| Keywords: | innovation, regulation, patents, firm size |
| JEL: | O31 L11 L51 J8 L25 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14082&r=all |
| By: | Vlados, Charis (Democritus University of Thrace, Department of Economics); Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics) |
| Abstract: | The study of spatial socio-economic development constitutes a significant field of analysis of innovation creation and diffusion. Understanding the spatial evolution of the different socio-economic systems in the age of globalization requires a synthesizing and integrated theoretical approach to how innovation is generated and replicated. This article aims to study three significant spatial socio-economic development theories –the growth poles, the clusters, and the business ecosystems. A literature review reveals that (a) the concept of growth poles concerns mostly the analysis of spatial polarization between specific territories and regions, (b) the clusters concept addresses the issue of developed inter-industrial competition and co-operation from a meso-level perspective, and (c) the analytical field of business ecosystems provides an evolutionary approach that can be valorized for all co-evolving spatial socio-economic organizations. In this context, an eclectically interventional mechanism to strengthen innovation is suggested. The Institutes of Local Development and Innovation (ILDI) policy is proposed for all firms and business ecosystems, of every size, level of spatial development, prior knowledge, specialization, and competitive ability. The ILDI is presented as an intermediate organization capable of diagnosing and enhancing the firm’s physiology in structural Stra.Tech.Man terms (strategy-technology-management synthesis). |
| Keywords: | Spatial Socio-Economic Development; Business Ecosystems; Clusters; Growth Poles; Institutes of Local Development and Innovation (ILDI); Stra.Tech.Man Physiology |
| JEL: | R11 R58 |
| Date: | 2020–11–27 |
| URL: | http://d.repec.org/n?u=RePEc:ris:duthrp:2020_013&r=all |
| By: | Vlados, Charis (Democritus University of Thrace, Department of Economics); Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics) |
| Abstract: | This article aims to investigate whether the helix theory and the Stra.Tech.Man approach (strategy-technology-management synthesis) have prospects of analytical cross-fertilisation. After presenting the evolution of helix theory of innovation in three different stages and identifying some of its essential points and received criticisms, it analyses the constituents and theoretical implications of the Stra.Tech.Man approach. It finds that some points of the Stra.Tech.Man analysis, such as the 'physiology' of the firm, the 'competitiveness web' approach that places the dynamics of business innovation centrally, and the proposal of a micro-meso level policy of 'local development and innovation institutions' that diagnoses Stra.Tech.Man physiology, constitute enrichment and cross-fertilisation elements of the two theories. Overall, both theories attempt to provide a comprehensive theory of integrated socio-economic development, and their synthesis seems to offer new theoretical implications. |
| Keywords: | helix theory; Stra.Tech.Man approach; innovation creation; business physiology; socio-economic development; competitiveness web; Local Development and Innovation Institutes; LIDI |
| JEL: | R11 R58 |
| Date: | 2020–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:ris:duthrp:2020_012&r=all |
| By: | Paul Benneworth (Western Norway University of Applied Sciences); Eskarne Arregui-Pabollet (European Commission - JRC) |
| Abstract: | This technical report presents the findings of the case study carried out in Northern Netherlands on the role of Higher Education Institutions (HEIs) in the design and implementation of the Smart Specialisation Strategy (RIS3). It is one of the case studies undertaken in the project Higher Education for Smart Specialisation (HESS), an initiative of the European Commission's Joint Research Centre (JRC) and the Directorate General for Education, Youth, Sport and Culture. There is a long tradition of higher education in the Northern Netherlands, with the key characteristic of a strong presence of Universities of Applied Sciences and RUG University of Groningen. The regional HEIs are actively involved in strong bilateral collaborations projects and clusters and living labs encouraging collaborations within the regional innovation ecosystems, being part of key innovation ecosystem governance structures. Although regional HEIs have individually been very effective in driving particular projects, there is still not a collective institutional space for HEIs, undermining a strategic agenda for HE in the region. The Northern Netherlands has a strong innovation ecosystem around a number of established sectors where there are robust relationships between HEIs and companies with innovative infrastructure. In the long-standing culture of collaboration of the regional innovation ecosystem, the introduction of the RIS3 has constituted an opportunity to a concerted effort to streamline innovation governance and to integrate activities to stimulate innovation. The key regional economic development issue remains the fact that it is a relatively sparse economic environment, which challenges the regional innovation governance. The Northern Netherlands has the potential to function as a knowledge economy more efficiently at the level of the North through a better integration of the provincial knowledge economies. The connectedness of SMEs into regional innovation networks can be improved building a natural "innovation escalator" by which individual connections with SMEs grow, become networks and evolves into key regional strengths. The region attracts a growing number of talented students, which can help build stronger connections between HEIs and regional innovators to strengthen firms' innovation capacity and help in their retention. Finally, HEIs occupy a strong position in the existing regional innovation ecosystem, as a site for experimentation and reflection, and it is key that they are encouraged to continue that work. The case study has coordinated closely with the ongoing discussions on the new RIS3 for the Multi-annual Financial Framework 2021-2027, contributing with findings that have helped the regional stakeholders in the definition of some of its future elements. |
| Keywords: | Smart specialisation strategies, higher education institutions, universities, territorial development, human capital, skills, innovation and growth, entrepreneurship |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc121432&r=all |
| By: | Hugo Pinto; Carla Nogueira; John Edwards (European Commission - JRC) |
| Abstract: | Universities and other higher education institutions (HEIs) are expected to play a catalytic role in S3. They are increasingly being asked to fulfil many new and wide-ranging tasks, probably with an overly optimistic perspective. To be effective in answering to all demands - such as being sources of knowledge, providers of education and training for strategic leaders of regional regeneration, suppliers of knowledge intensive services and infrastructure, local connectors with external knowledge and markets, and also animators of their innovation systems – HEIs face internal and external limitations. This report presents the main results of the JRC project on Higher Education for Smart Specialisation in Portugal. The project intends to help build innovation capabilities by strengthening the participation of HEIs in regional networks; and by promoting the integration of higher education with research, innovation and regional development in the S3 policy mix. The results are divided into two categories. First, a quantitative and descriptive analysis of the publicly available information about the HE system and on the use of European Structural and Investment Funds. Second, the presentation of qualitative results, based on the content analysis of interviews administered to key stakeholders and focus groups conducted in all regions. Results identify aspects for the innovative and transformation potential of Portuguese regions while they also underline contextual and specific problems facing HEIs, while highlighting measures to help overcome these limitations. |
| Keywords: | Portugal, Higher Education |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc123230&r=all |
| By: | Pierre-Olivier Gourinchas; Sebnem Kalemli-Ozcan; Veronika Penciakova; Nick Sander |
| Abstract: | This paper assesses the prospects of a 2021 time bomb in small and medium-sized enterprises (SME) failures triggered by the generous support policies enacted during the 2020 COVID-19 crisis. Policies implemented in 2020, on their own, do not create a 2021 time bomb for SMEs. Rather, business failures and policy costs remain modest. By contrast, credit contraction poses significant risk. Such a contraction would disproportionately affect firms that could have survived COVID-19 in 2020 without any fiscal support. Even in that scenario, most business failures would not arise from excessively generous 2020 policies but rather from the contraction of credit to the corporate sector. |
| Keywords: | business formation; entrepreneurship; business dynamism; recessions |
| JEL: | L26 E32 M21 |
| Date: | 2021–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:90076&r=all |
| By: | John Van Reenen |
| Abstract: | The new US administration has the opportunity to reset an economic model that has failed to deliver prosperity for millions of Americans for decades. John Van Reenen calls for a Grand Innovation Challenge Fund - federal funding for research and development to fuel technological innovation and raise productivity growth. |
| Keywords: | r&d, innovation, patents, tax system, productivity, growth |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:599&r=all |
| By: | Pavlova, Elitsa; Signore, Simone |
| Abstract: | We use competing risks methods to investigate the causal link between venture capital (VC) investments supported by the EIF and the exit prospects and patenting activity of young and innovative firms. Using a novel dataset covering European start-ups receiving VC financing in the years 2007 to 2014, we generate a counterfactual group of non-VC-backed young and innovative firms via a combination of exact and propensity score matching. To offset the limited set of observables allowed by our data, we introduce novel measures based on machine learning, network theory, and satellite imagery analysis to estimate treatment propensity. Our estimates indicate that start-ups receiving EIF VC experienced a significant threefold increase in their likelihood to exit via M&A. We find a similarly large effect in the case of IPO, albeit only weakly significant. Moreover, we find that EIF VC contributed to a 13 percentage points higher incidence in patenting activity during the five years following the investment date. Overall, our work provides meaningful evidence towards the positive effects of EIF's VC activity on the exit prospects and innovative capacity of young and innovative businesses in Europe. |
| Keywords: | EIF,venture capital,public intervention,exit strategy,innovation,start-ups,machine learning,geospatial analysis,network theory |
| JEL: | G24 G34 M13 O32 O38 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eifwps:202170&r=all |
| By: | Claudiu ALBULESCU; Camélia TURCU |
| Keywords: | , productivity, R&D firms, corporate finance and governance, panel quantile regression, Romania |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:leo:wpaper:2846&r=all |
| By: | Emin M. Dinlersoz; Timothy Dunne; John Haltiwanger; Veronika Penciakova |
| Abstract: | The trajectory of new business applications and transitions to employer businesses differ markedly during the Great Recession and the COVID-19 recession. Both applications and transitions to employer startups decreased slowly but persistently in the post-Lehman crisis period of the Great Recession. In contrast, during the COVID-19 recession new applications initially declined but have since sharply rebounded, resulting in a surge in applications during 2020. Projected transitions to employer businesses also rise, but this projection is dampened by a change in the composition of applications in 2020 toward applications that are more likely to be nonemployers. |
| Keywords: | COVID-19; business failures; liquidity; small business |
| JEL: | D2 E65 G33 |
| Date: | 2021–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:90075&r=all |
| By: | Demary, Markus; Demary, Vera |
| Abstract: | A growing, but still small number of companies in Germany are supplying products and services based on the blockchain technology. Most of these are start-up companies and are headquartered in Berlin. Although a lot of them are focused on providing financial services, an increasing number of blockchain companies has started developing other blockchain-based services. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:82021&r=all |
| By: | Zheng, Guanyu; Duy, Hoang Minh; Pacheco, Gail |
| Abstract: | New Zealand has experienced poor productivity performance over the last two decades. Factors often cited as reasons behind this are the small size of the domestic market and distance to international partners and markets. While the distance reason is one that is fairly insurmountable, there are a number of other small advanced economies that also face similar domestic market constraints. This study compares the relative performance of New Zealand's firms to those economies using novel cross-country microdata from CompNet. We present stylised facts for New Zealand relative to the economies of Belgium, Denmark, Finland, Netherlands and Sweden based on average productivity levels, as well as benchmarking laggard, median and frontier firms. This research also employs an analytical framework of technology diffusion to evaluate the extent of productivity convergence, and the impact of the productivity frontier on non-frontier firm performance. Additionally, both labour and capital resource allocation are compared between New Zealand and the other small advanced economies. Results show that New Zealand's firms have comparatively low productivity levels and that its frontier firms are not benefiting from the diffusion of best technologies outside the nation. Furthermore, there is evidence of labour misallocation in New Zealand based on less labour-productive firms having disproportionally larger employment shares than their more productive counterparts. Counter-factual analysis illustrates that improving both technology diffusion from abroad toward New Zealand's frontier firms, and labour allocation across firms within New Zealand will see sizable productivity gains in New Zealand. |
| Keywords: | labour productivity,productivity convergence,resource allocation |
| JEL: | L25 O33 O47 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhcom:12021&r=all |
| By: | Claudio Fassio (Department of Business Administration, University of Lund, Sweden); Aldo Geuna (Department of Economics and Statistics Cognetti De Martiis, University of Torino, Italy); Federica Rossi (Department of Management, Birkbeck College, University of London, UK) |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:img:wpaper:44&r=all |
| By: | Rinaldo Evangelista (School of Law, University of Camerino, Italy); Valentina Meliciani (Department of Management, University LUISS "Guido Carli" of Rome, Italy); Antonio Vezzani (Department of Economics, Roma Tre University, Italy) |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:img:wpaper:42&r=all |
| By: | FLACHENECKER Florian (European Commission - JRC); KORNEJEW Martin; JANIRI Mario (European Commission - JRC) |
| Abstract: | This report investigates firm growth before, during and after the Great Recession 2007-2009. We use a representative sample of firms from the business economy in 16 Member States of the European Union (EU) between 2005 and 2014. Empirical analysis of firm distributions across time reveal the following facts. (i) The Great Recession of 2007-2009 reduced growth across the board.(ii) The recovery process though was disproportionately driven by a few large firms. (iii) During the first phase of the recovery, the firm growth distribution shifted upwards as a whole. (iv) During the second phase, only the left tail of negative growth got shorter. (iii) The recession reduced the share of HGEs in all size classes, but especially among large firms. (iv) Yet, even during the Great Recession HGEs played an important role for aggregate sales growth. (v) Although HGEs tend to be smaller than the average firm, their outstanding contribution to aggregate sales growth is predominantly driven by large HGEs. This holds true throughout the recession. We conclude with insights from the recovery of the Great Recession that might be relevant also in the current COVID-19 context. |
| Keywords: | high growth enterprises, Great Recession, COVID-19, European Union |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc123700&r=all |
| By: | Tomenendal, Matthias; Lange, Hans Rüdiger; Raffer, Christian |
| Abstract: | In former studies cluster firms have hardly proven to be more resilient to shocks than non-cluster firms. Yet, there is a lack of research on how cluster firms can achieve resilience. Based on a qualitative study of firms in the Eastern German Lusatian energy cluster we found that after a shock - a sudden decision on energy policy changes of the German federal government - cluster firms have replaced pre- by postshock institutional logics. Studied firms put more emphasis on further utilising core competences and demonstrate more openness to communicate inside and outside of the cluster. In essence, cluster firms change institutional logics for strengthened T-shaped cluster competences, which subsequently lead to higher resilience of cluster firms and clusters. By linking institutional logics to cluster resilience via cluster competences we provide a new perspective on how cluster firms can be resilient in the face of a shock. |
| Keywords: | neo-institutionalism,cluster resilience,cluster competences |
| JEL: | L14 L29 O43 R11 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:imbwps:99&r=all |
| By: | Caroline Cohen (European Commission - JRC) |
| Abstract: | This report summarises and analyses the main findings of the reflection and collective work engaged with 12 territories from across Europe that was carried out from March to December 2020 with the aim to collect evidence on the potential impact of S3 in the quality of policy governance and innovation ecosystem, as well as, its effects in terms of growth and jobs. Based on the reflection carried out with a wide range of member states and regions across Europe, it highlights different types of methodological approaches and measures that were developed and are foreseen by policy-makers to assess the impact of their research and innovation strategies at different territorial levels. Although participants advocate a 10 to 15 years' time span to fully grasp the impact of the induced changes related to the implementation of S3, the report shows that the Smart Specialisation concept is perceived as a pivotal enabler for industry renewal, bringing together stakeholders in the ecosystem and fostering international value chains. The experimental nature of the Smart Specialisation approach can play a central role in supporting new and innovative activities, help territories discover new opportunities and pursue new paths of development towards more sustainable and inclusive growth models. |
| Keywords: | Smart Specialisation - Impact Assessment - Territorial development - Industrial Innovation - Global value chains |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc124046&r=all |
| By: | Raden Johannes; Andry Alamsyah |
| Abstract: | The growth of internet users in Indonesia gives an impact on many aspects of daily life, including commerce. Indonesian small-medium enterprises took this advantage of new media to derive their activity by the meaning of online commerce. Until now, there is no known practical implementation of how to predict their sales and revenue using their historical transaction. In this paper, we build a sales prediction model on the Indonesian footwear industry using real-life data crawled on Tokopedia, one of the biggest e-commerce providers in Indonesia. Data mining is a discipline that can be used to gather information by processing the data. By using the method of classification in data mining, this research will describe patterns of the market and predict the potential of the region in the national market commodities. Our approach is based on the classification decision tree. We managed to determine predicted the number of items sold by the viewers, price, and type of shoes. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.03117&r=all |
| By: | Vlados, Charis (Democritus University of Thrace, Department of Economics); Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics); Koutroukis, Theodore (Democritus University of Thrace, Department of Economics); Kokkinaki, Angelika (University of Nicosia, School of Business); Tsarpa, Ioanna (Democritus University of Thrace, Department of Economics) |
| Abstract: | Human resource management and continuing training are prerequisites for business innovation, especially when the fourth industrial revolution causes the rapid emergence of knowledge-intensive professions and the constraint of older ones. This article examines how human resources, in-business training, and educational needs are significant parts of entrepreneurial innovation and business development. We present field research that we conducted in the business ecosystem of Eastern Macedonia and Thrace, which is a less competitive region of Greece and Europe. After examining the region’s economic profile, we continue with field research results in its retail sector. Our findings suggest that these businesses desire and search for more systematic actions towards training enhancement and human resource management upgrading. Thus, we propose a policy mechanism that could function as a “business clinic” for the region, including the diagnosis of needs and “therapeutic” intervention in terms of education and knowledge. This local development policy could create a growth spiral for the entire socio-economic spatialized system. |
| Keywords: | Human Resource Management; Professional Training; Business Education; Eastern Macedonia and Thrace; Retail Firms; Institutes of Local Development and Innovation; Fourth Industrial Revolution |
| JEL: | M19 O15 O32 |
| Date: | 2020–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:ris:duthrp:2020_014&r=all |
| By: | HAYAKAWA Kazunobu; Hans R.A. KOSTER; TABUCHI Takatoshi; Jacques-François THISSE |
| Abstract: | We investigate the effects of high-speed rail (HSR) on the location of economic activity. We set up a spatial quantitative general equilibrium model that incorporates spatial linkages between firms (including manufacturing and services), agglomeration economies, as well as commuting and migration. The model is estimated for Japan in order to investigate the impacts of the Shinkansen, i.e., the first HSR ever built. We show that traveling by train strengthens firm linkages, but is less important for commuting interactions. The Shinkansen increases welfare by about 5%. We show that extensions of the Shinkansen network may have large effects (up to a 30% increase in employment) on connected municipalities, although the effects are smaller for places with higher fixed costs. Our counterfactuals show that, without the Shinkansen, Tokyo and Osaka would be 6.3% and 4.4% larger, respectively. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:21003&r=all |
| By: | Lambert, Derek (Central Bank of Ireland); McCann, Fergal (Central Bank of Ireland); McQuinn, John (Central Bank of Ireland); Myers, Samantha (Central Bank of Ireland); Yao, Fang (Central Bank of Ireland) |
| Abstract: | We update estimates of aggregate revenue shortfalls due to COVID-19 in the Irish Small and Medium Enterprise (SME) sector for the full year 2020. Acknowledging heightened uncertainty, we estimate shortfalls of between €10.3bn and €11.7bn, based on reported reductions in firms’ costs (including wage support take-up) and revenues since March, and macroeconomic projections. In aggregate these shortfalls will be met by a combination of utilisation of pre-existing SME cash reserves, draw-downs of existing credit commitments, new borrowing, government non-wage grants and reliefs, guaranteed loans and loss-sharing where payments have been missed. In cases where these options are insufficient, shortfalls may also lead to the closure of firms. We review recent debates on the relative merits of debt, grants and equity-like support mechanisms, and conclude with results from a model of SME financial distress. The model assesses SMEs’ capacity to meet operating losses with cash or to service interest on bank debt, analysing the role of policy supports in mitigating these risks. The current policy support package, including elements related to both wage and non-wage costs, lowers the rate of financial distress by one-sixth. Encouragingly from a financial stability standpoint, the effect of current policy is larger when focussing on debt balances, reducing the financial distress rate by two-fifths. These results point to the importance of non-financial support policies, including those aimed at restructuring of liabilities of distressed enterprises, in the current environment. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:fsnote:8/fs/20&r=all |
| By: | Meriam Attia (ISG - Institut Supérieur de Gestion de Tunis [Tunis] - Université de Tunis, UM - Université de Montpellier); Ouidad Yousfi (UM - Université de Montpellier, MRM - Montpellier Research in Management - UM - Université de Montpellier - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM1 - Université Montpellier 1 - UPVD - Université de Perpignan Via Domitia - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVM - Université Paul-Valéry - Montpellier 3); Abdelwahed Omri (ISG - Institut Supérieur de Gestion de Tunis [Tunis] - Université de Tunis) |
| Abstract: | This chapter shows how boards' characteristics could influence two aspects of innovation: (1) innovation effort (such as R&D expenditures and R&D team composition) and (2) innovation performance, specifically product, process, organizational and marketing innovations. First, we focus on individual characteristics of board members and their influence on innovation effort and performance. Then, we examine how the internal organization of boards, specifically the committees' roles and their composition and to what extent they could be meaningful to innovation processes. Specially, we discuss the influence of the committee size, the frequency of meetings, and the presence of independent and female members. Finally, the chapter sheds light on the effectiveness of initiatives and programs introduced to increase diversity such as gender quota laws, and the presence of minorities in top management positions. |
| Keywords: | Committees,Board demographic attributes,Board Structure,Corporate Governance,Innovation |
| Date: | 2021–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03144970&r=all |
| By: | KODAMA Naomi; MURAKAMI Yoshiaki; TANAKA Mari |
| Abstract: | The dynasty model, which assumes the presence of intergenerational altruism, implies that business owners will have more incentive to improve the firm performance if they expect their children to take over their firms. This study empirically examines how top managers' expectations about future family succession affect the performance of small businesses. Utilizing the sex of the top manager's first-born child as an instrumental variable for the manager's expectations about business succession by his child, we find that the existence of a potential family successor has a positive effect on profit. We also find that the presence of a potential family successor induces performance-enhancing actions and behaviors on the part of managers, such as improving operational efficiency, selecting better suppliers, and investing in information technology. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:21013&r=all |
| By: | PERIANEZ FORTE Inmaculada (European Commission - JRC); WILSON James |
| Abstract: | This policy insight focuses on the tools and mechanisms used by countries and regions to foster efficient entrepreneurial discovery processes (EDP), within their smart specialisation strategies. How this interactive process should be stimulated and organised remains highly context-dependent. There seem to be a significant heterogeneity across entrepreneurial discovery processes and within entrepreneurial discovery processes themselves. Existing institutions, culture and historical trajectory of innovation policy influence the ways countries and regions organise their entrepreneurial discovery processes. The ambiguity around the entrepreneurial discovery process, in theory and practice, stems from the diverse interpretations that can be made of what the desired process should look like, and from the diverse regional contexts in which it is to be implemented. To organise successful entrepreneurial discovery processes we suggest focusing on interventions that: (i) design/implement mechanisms around the specificities of the regional context; (ii) re-consider using digital forms of engagement; (iii) increase the use of communication and dissemination tools. |
| Keywords: | Smart specialisation, entrepreneurial discovery processes (EDP) |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc124101&r=all |
| By: | LARANJA Manuel; Anabela Santos (European Commission - JRC); EDWARDS John; FORAY Dominique |
| Abstract: | The "Entrepreneurial Discovery Process" is a key element of Smart Specialisation Strategy, referring to stakeholder involvement in policy design to 'discover' and identify new or existing priorities for innovation investment, based on region strengths and market trends. However, studies have revealed that this principle has been one of the most demanding for regions (or countries) to implement, and such interaction between stakeholders has been even more challenging in times of physical distancing, as the result of the COVID-19 pandemic. The present report aims to present the lessons learned through the pilot actions conducted with the Alentejo and Algarve regions of Portugal for prototyping online events to support the "Entrepreneurial Discovery Process". The pilots provide the opportunity to design and test whether online workshops could be used to support EDP more widely, and what adaptations would be needed for a new online context. For both events the objective was to stimulate regional actors to participate in an initial exploration of relevant thematic areas, in order to define them as possible priority domains for the next Smart Specialisation cycle. Participating actors in both regions were invited to participate, share experiences, identify obstacles, and suggest solutions to strengthen the innovative capacity of the region in these thematic areas. Hence the events were prepared to bring together a range of actors in the territory, from business, research, and the public administration to discuss issues relevant to their regional strategies. This report sets out the lessons learned from this experience with organising and participating on online events to support EDP can be divided in before-the-event, during-the-event and after-the-event. Furthermore, an ex post online survey to participants also revealed an overall high satisfaction from the participants and that the EDP online events were welcomed by the large majority of participants. For future similar events associated with the EDP process, participants expressed their preference for a mixed format, where physical meetings could (if possible) be used to complement online meetings. Altogether, such findings suggest that re-thinking the support of "Entrepreneurial Discovery Process" and adopting a digital approach can ensure not only the continuity of the policy process in difficult times but can also be a way to improve the participation in the governance model in the post-corona crisis. |
| Keywords: | COVID-19; Entrepreneurial Discovery Process; On-line event; Portugal |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc123818&r=all |