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on Small Business Management |
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Issue of 2012‒05‒15
fourteen papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Federico Barbiellini Amidei (Bank of Italy); John Cantwell (Rutgers University); Anna Spadavecchia (University of Reading) |
| Abstract: | The paper explores the long run evolution of Italy's performance in technological innovation as a function of international technology transfer, reconstructing the different phases and dimensions of Italian innovative activity, tracking the transfer of foreign technological knowledge through a number of channels, analysing the impact of imported technology. The study is based on a newly constructed dataset, over the 1861-2009 period, composed of variables related to: innovation activity performance; foreign technology transfer; domestic absorptive and innovative capability. The analysis highlights, also by econometric assessment, the significant contribution of foreign technology both to innovation activity results and to productivity growth. Differences across channels of technology transfer and historical phases emerge, also in connection with the evolution of human capital endowment and domestic innovative capacity. Machinery imports contributed positively both to innovation activity and to productivity growth; inward FDI contributed positively to productivity growth, but not to indigenous innovation activity; the accumulation of technical human capital fuelled both. In the long Italian Golden Age, for the first time the association of foreign technological knowledge with indigenous innovation processes strengthened productivity significantly. More recently instead the dismal productivity growth is negatively associated with formalised innovation activity under-performance and reduced imports of disembodied technology |
| Keywords: | Italy,Technology Transfer,Innovation,Absorptive Capability,Patenting |
| JEL: | N10 O31 O33 F23 O19 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:workqs:qse_07&r=sbm |
| By: | Traci L. Mach; John D. Wolken |
| Abstract: | This paper examines the effects of credit availability on small firm survivability over the period 2004 to 2008 for non-publicly traded small enterprises. Using data from the 2003 Survey of Small Business Finances, we develop failure prediction models for a sample of small firms that were confirmed to have been in business as of December 2003, with particular attention to the impact of credit constraints. We find that credit constrained firms were significantly more likely to go out of business than non constrained firms. Moreover, credit constraint and credit access variables appear to be among the most important factors predicting which small U.S. firms went out of business during the 2004-2008 period even though an extensive set of firm, owner, and market characteristics were also included as explanatory factors. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2012-10&r=sbm |
| By: | Cosh, A.; Zhang, J. |
| Abstract: | Whilst the variety of search activities promotes innovation, there is a central tension between a firm's potential benefits from wide and diverse search activities and its ability to reap these potential benefits. In this paper, we argue that the potential and realised benefits from a firm' search activities are influenced not only by its resources and capabilities, but also by the nature of innovation activities at sector level. Drawing upon a statistical analysis of a large scale survey conducted in the US, we examine the impact of a firm's external search strategy along two dimensions (search intensity and direction) on its innovative performance. Our findings suggest that manufacturing firms tend to benefit from wide and diversified search activities whereas knowledge intensive business services (KIBS) firms tend to benefit from narrow and specialised search activities. Furthermore, when taking account of firm size and absorptive capacity, a more nuanced picture emerges. Implications and contributions to the innovation search literature are discussed. |
| Keywords: | variety of search, open innovation, SME, manufacturing, Knowledge intensive business services, US survey |
| JEL: | L25 O14 O32 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp431&r=sbm |
| By: | Jaap W.B. Bos; Ryan C.R. van Lamoen; Mark W.J.L. Sanders |
| Abstract: | In this paper we estimate, using stochastic frontier estimation techniques, the relationship between R&D inputs a innovative output in a sample of Dutch firms. We find that over 63% of between firm variation in observed "innovativeness" can be attributed to inefficiency in the innovation process. The remainder is due to differences in the innovation production process itself. We derive our results including the usual controls and find in addition that large firms tend to look more innovative. But when considered more carefully large firms turn out to be less efficient. With standard estimation techniques this inefficiency is masked by a more productive innovation technology. We thus find evidence of economies of scale in line with the Schumpeter mark II hypothesis (large firms are more innovative), but also show that large firms tend to operate at lower levels of efficiency. |
| Keywords: | Innovation, Scale Economies, Frontier |
| JEL: | D21 G21 L10 O3 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:deg:conpap:c016_060&r=sbm |
| By: | Houthoofd, Noël (Hogeschool-Universiteit Brussel (HUB)); Hendrickx, Jef (Hogeschool-Universiteit Brussel (HUB)) |
| Abstract: | The purpose of the paper is to identify the sources of variation in firm performance. This is one of the cornerstones of strategy research, i.e. the relative importance of industry and firm level effects on firm performance. Multilevel analysis is well suited to analyze variance in performance when the data are hierarchically structured (industry segments consist of firms, firms operate within the context of industry segments). The Belgian industry studied is a service industry that consists of about 25 electrical wholesalers. Data were collected from 20 firms during the period 1998-2003 from responses to a questionnaire sent to all the firms in the market. The sample in the data set covers more than 95 percent of the market (in sales), as the missing firms were just fringe competitors. The results show that firm effects explain most of the variance in four performance variables. That bears out the importance of each firm having its own specific, idiosyncratic resources and competences. The explanatory power of firm effects varies by about 30 to 40 percent while the intra-industry effect explains around 10 percent of the variance. Even though firm effects are dominant, intra-industry effects explain a significant portion of the variance in firm level performance. The firm effect is smaller than in previous studies. The firm effect varies across the performance measures: firm effects are higher for returns on assets than for profit margins. The industry segment effect (or intra-industry effect) is more independent of the dependent variable. The industry segment effect is in line with previous studies on the strategic group effect. Top managers should carefully choose and monitor the intra-industry domain they are in. |
| Keywords: | firm effect vs. industry effect, electrical wholesale sector, performance differences, multilevel analysis |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:hub:wpecon:201217&r=sbm |
| By: | Francesco Bogliacino (Universidad EAFIT and RISE Group, Medellin); Marco Vivarelli (DISCE, Università Cattolica) |
| Abstract: | In this study we use a unique database covering 25 manufacturing and service sectors for 16 European countries over the period 1996-2005, for a total of 2,295 observations, and apply GMM-SYS panel estimations of a demand-for-labour equation augmented with technology. We find that R&D expenditures have a job-creating effect, in accordance with the previoustheoretical and empirical literature discussed in the paper. Interestingly enough, the labourfriendly nature of R&D emerges in both the flow and the stock specifications. These findings provide further justification for the European Lisbon-Barcelona targets. |
| Keywords: | Technological change, corporate R&D, employment, product innovation, GMMSYS. |
| JEL: | O33 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie2:dises1178&r=sbm |
| By: | Valter Di Giacinto (Bank of Italy); Matteo Gomellini (Bank of Italy); Giacinto Micucci (Bank of Italy); Marcello Pagnini (Bank of Italy) |
| Abstract: | We compare the magnitude of local productivity advantages associated with two different spatial concentration patterns in Italy – urban areas and industrial districts. The former have high population density and host a wide range of economic activities, while the latter are marked by a high concentration of small firms producing relatively homogenous goods. Using data from a large sample of Italian manufacturing firms observed over the 1995-2006 period, we detect local productivity advantages for both urban areas and industrial districts. However, firms located in urban areas reap a larger productivity premium than those operating within districts. The advantages of industrial districts have declined over time; those of urban areas have remained stable. Differences in the composition of firm employees between white- and blue-collars explain a small fraction of the urban productivity premium. The quantile regressions show how more productive firms gain larger benefits by locating in urban areas. Our analysis raises the question of whether Italian industrial districts are less fit than urban areas to prosper in a world characterized by advancing globalization and the growing use of ICT. |
| Keywords: | urban areas, industrial districts, agglomeration economies, productivity, white- and blue-collars, Italian economy |
| JEL: | C52 D24 R12 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_850_12&r=sbm |
| By: | Guettler, Stefan; Seidel-Lass, Linda; Mueller, Rolf A.E. |
| Keywords: | Aquaculture R&D, Bibliometric Network Analysis, DREAM simulation, Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:122885&r=sbm |
| By: | Pedro Mazeda Gil; Fernanda Figueiredo |
| Abstract: | This paper studies the firm size distribution arising from an endogenous growth model of quality ladders with expanding variety. The probability distribution function of a given cohort of firms is a Poisson distribution that converges asymptotically to a normal of log size. However, due to firm entry propelled by horizontal R&D, the total distribution – i.e., when the entire population of firms is considered – is a mixture of overlapping Poisson distributions which is systematically right skewed and exhibits a fatter upper tail than the normal distribution of log size. Our theoretical results qualitatively match the empirical evidence found both for the cohort and the total distribution, and which has been presented as a challenge for theory to explain. Moreover, by obtaining a total distribution with a gradually falling variance over a long time span, the model is able to address complementary empirical evidence that points to a total distribution subtly evolving over time. |
| Keywords: | Firm size distribution; Skewness; Heavy tails; Endogenous growth; Horizontal and vertical R&D |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:deg:conpap:c016_065&r=sbm |
| By: | Martin, Ben; Nightingale, P.; Yegros-Yegros, A. |
| Abstract: | Science and Technology Studies (STS) is one of a number of new research fields to emerge over the last four or five decades. This paper attempts to identify its core academic contributions using the methodology developed by Fagerberg et al. (2011) in their parallel study of Innovation Studies. The paper uses the references cited by the authors of chapters in a number of authoritative 'handbooks', based on the assumption that those authors will collectively have been reasonably comprehensive in identifying the core contributions to the field. The study analyses the publications most highly cited by the handbook authors, in particular examining their content and what they reveal about the various phases in the development of STS. The second part of the study analyses the 'users' of the STS core contributions who have cited these contributions in their own work, exploring their research fields, journals, and geographical location. The paper concludes with some comparisons between STS and the fields of Innovation Studies and Entrepreneurship, in particular with regard to the role of 'institution builders' in helping to develop a new research field. |
| Keywords: | science studies, STS, knowledge base, core contributions, institution builders |
| JEL: | N01 O33 B29 O14 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp427&r=sbm |
| By: | Hughes, A. |
| Abstract: | This paper analyses science policy resource allocation in the light of a comparison of the open innovation and Mode 2 new production of knowledge conceptual frameworks. It provides a brief historical review of the evolution of science funding and the application of the Haldane principle in the UK. The core of the paper analyses academic and business attitudes to university-industry links using two recent large scale surveys and argues that there is a largely false dichotomy drawn between applied and basic research. University-industry links are already extensive and encompass a wide range of interactions than those captured by the usual debate over science engineering and narrow conceptions of commercialisation based on patenting and spin-outs. |
| Keywords: | Science Policy, Haldane Principle, Open Innovation, University-Industry Links |
| JEL: | O31 O38 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp425&r=sbm |
| By: | Pere Arqué-Castells (Universitat Autònoma de Barcelona & IEB); Pierre Mohnen (University of Maastricht) |
| Abstract: | We study whether there is scope for using subsidies to smooth out barriers to R&D performance and expand the share of R&D firms in Spain. We consider a dynamic model with sunk entry costs in which firms’ optimal participation strategy is defined in terms of two subsidy thresholds that characterise entry and continuation. We compute the subsidy thresholds from the estimates of a dynamic panel data type-2 tobit model for an unbalanced panel of about 2,000 Spanish manufacturing firms. The results suggest that “extensive” subsidies are a feasible and efficient tool for expanding the share of R&D firms. |
| Keywords: | R&D, persistence, subsidies, dynamic models |
| JEL: | H2 O2 C1 D2 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2012/5/doc2012-13&r=sbm |
| By: | Nicola Gennaioli; Rafael Laporta; Florencio López-de-Silanes; Andrei Schleifer |
| Abstract: | We investigate the determinants of regional development using a newly constructed database of 1569 sub-national regions from 110 countries covering 74 percent of the worlds surface and 96 percent of its GDP. We combine the cross-regional analysis of geographic, institutional, cultural, and human capital determinants of regional development with an examination of productivity in several thousand establishments located in these regions. To organize the discussion, we present a new model of regional development that introduces into a standard migration framework elements of both the Lucas (1978) model of the allocation of talent between entrepreneurship and work, and the Lucas (1988) model of human capital externalities. The evidence points to the paramount importance of human capital in accounting for regional differences in development, but also suggests from model estimation and calibration that entrepreneurial inputs and human capital externalities are essential for understanding the data. |
| Keywords: | productivity, entrepreneurial education, regional externalities |
| JEL: | I25 O11 O15 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:581&r=sbm |
| By: | Philippe Aghion; Mathias Dewatripont; Luosha Du; Ann Harrison; Patrick Legros |
| Abstract: | This paper argues that sectoral policy aimed at targeting production activities to one particular sector, can enhance growth and efficiency if it made competition-friendly. First, we develop a model in which two firms can operate either in the same (higher growth) sector or in different sectors. To escape competition, firms can either innovate vertically or differentiate by chosing a different sector from its competitor. By forcing firms to operate in the same sector, sectoral policy induces them to innovate "vertically" rather than differentiate in order to escape competition with the other firm. The model predicts that sectoral targeting enhances average growth and productivity more when competition is more intense within a sector and when competition is preserved by the policy. In the second part of the paper, we test these predictions using a panel of medium and large Chinese enterprises for the period 1998 through 2007. Our empirical results suggest that if subsidies are allocated to competitive sectors (as measured by the Lerner index) and allocated in such a way as to preserve or increase competition, then the net impacts of subsidies, tax holidays, and tariffs on total factor productivity levels or growth become positive and significant. We address the potential endogeneity of targeting and competition by using variations in targeting across Chinese cities that are exogenous to the individual firm. |
| JEL: | D2 L5 L6 O2 O3 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18048&r=sbm |