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on Small Business Management |
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Issue of 2012‒12‒15
eleven papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Pfeifer, Christian (Leuphana University Lueneburg and IZA); Wagner, Joachim (Leuphana University Lueneburg, CESIS) |
| Abstract: | This empirical research note documents the relationship between composition of a firm's workforce (with a special focus on age and gender) and its performance with respect to innovative activities (outlays and employment in research and development (R&D)) for a large representative sample of enterprises from manufacturing industries in Germany using unique newly available data. We find that firms with a higher share of older workers have significantly lower proportions of R&D outlays in total revenues and of R&D employment in total employment, whereas firms with a higher share of female employment seem to be more active in R&D. |
| Keywords: | Ageing; firm performance; gender; Germany; innovation; R&D |
| JEL: | D22 D24 J21 J24 L25 |
| Date: | 2012–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0291&r=sbm |
| By: | Neil Lee; Andrés Rodríguez-Pose |
| Abstract: | One of the key benefits of cities is that they allow the exchange of knowledge and information between economic actors. This may have two effects: it may create the conditions for entirely new innovations to emerge, and it may allow firms to learn innovations from those nearby. Yet few studies have considered the impact of an urban location on whether innovations are original or learnt. This paper tests these hypotheses using large-scale survey evidence for over 1,600 UK SMEs. We show that while urban firms tend to be both product and process innovators, urban firms are disproportionately likely to introduce process innovations which are only new to the firm, rather than entirely original. Instead, the urban advantage in product innovation appears to come from a combination of the effects. The results highlight a need for a nuanced view of the link between cities and innovation. |
| Keywords: | Innovation, Cities, SMEs, Learning, United Kingdom |
| JEL: | O31 O33 O38 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1223&r=sbm |
| By: | ISOGAWA Daiya; NISHIKAWA Kohei; OHASHI Hiroshi |
| Abstract: | This paper evaluates the economic impact of new-to-market product innovation using firm-level data obtained from the Japanese National Innovation Survey. It accounts for possible technological spillovers in innovation activities and examines the extent to which new-to-market product innovation contributes to firm performance. The paper offers several new insights on product innovation. |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:12077&r=sbm |
| By: | Giorgio Barba Navaretti (University of Milan and Centro Studi Luca d’Agliano); Davide Castellani (University of Perugia and Centro Studi Luca d’Agliano); Fabio Pieri (Universitat de València) |
| Abstract: | This paper provides new insights on the firm age and growth nexus along the entire distribution of (positive and negative) growth rates. Using data from the EFIGE survey, and adopting a quantile regression approach we uncover evidence for a sample of French, Italian and Spanish manufacturing firms in the period from 2001 to 2008. After controlling for several firms’ characteristics, country and sector specificities we find that: (i) young firms grow faster than old firms, especially in the highest growth quintiles (ii) young firms face the same probability of declining than their older counterparts; (iii) high growth is associated with younger CEOs and other attributes which capture the attitude of firm toward growth and change, i.e. the number of employees involved in R&D activities and the number of graduate employees; (iv) results are robust to the inclusion of other firms’ characteristics like labor productivity, capital intensity, and the financial structure. Overall, our results are consistent with several theoretical arguments, like love for risk and learning. |
| Keywords: | firm growth, age, quantile regression |
| JEL: | L21 L25 L26 L60 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1217&r=sbm |
| By: | Wouter Jacobs; Hans R.A. Koster; Frank van Oort |
| Abstract: | It has been argued that the relationship between knowledge intensive business services (KIBS) and multi-national enterprises (MNEs) within the regional economy is advantageous for urban and regional dynamics. It is likely that KIBS aim to locate proximate to (internationally operating) MNEs because of agglomeration externalities. The impact of MNEs on the birth of KIBS has rarely been examined, and the research on the new formation of KIBS has mainly adopted a case study approach, thus limiting the opportunity for generalisation. We have taken a more quantitative approach using a continuous space framework to test whether proximity is important for the co-location of KIBS and MNEs in the metropolitan area of Amsterdam in the Netherlands. Our results, controlled for other location factors, indicate that KIBS are co-agglomerated with MNEs and that the presence of a MNE significantly influences the birth of KIBS nearby, but the effect on such start-ups is considerably smaller than the positive effect of the presence of already established KIBS. We discuss the implications for urban and regional development strategies and policy initiatives. |
| Keywords: | knowledge intensive business services, multi-national enterprises, start-ups, point pattern methodology, Amsterdam. |
| JEL: | F23 L84 L25 R12 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1225&r=sbm |
| By: | Donato Iacobucci (Dept. of Information Engineering Università Politecnica delle Marche, Italy) |
| Abstract: | The smart specialisation strategy (S3) requires the identification in each region of one or more thematic areas where R&D and innovation policy should be focused on to create and sustain a competitive advantage. Not necessarily the chosen areas will belong to the core, general purpose technology that are generally identified as high-tech sectors (ICT, biotech, etc.). For most of the (peripheral) regions the application of the S3 will involve the identification of production domains in which general purpose technology can be applied and adapted. The aim of this paper is to discuss the theoretical underpinning of the S3, focusing the analysis on three concepts: embeddedness, relatedness and connectivity. The analysis is carried out by reviewing the available documents about the definition and implementation of the smart specialisation strategy and the early proposals developed by some European regions. S3 is an important advancement in the design of regional innovation policy. A better clarification of its theoretical basis and implementation problems can improve its effectiveness. |
| Keywords: | smart specialisation; regional innovation policy; low and medium tech-industries |
| JEL: | L52 O25 R11 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:cme:wpaper:1215&r=sbm |
| By: | Carla Costa; Rui Baptista |
| Abstract: | The mechanisms driving regional clustering are examined by exploring two theories: agglomeration economies and organizational reproduction. While organizational reproduction through spinoffs dominates clusters' early stages of growth, in clusters populated by small, vertically disintegrated firms accessing networks of external capabilities, agglomeration economies should emerge as a positive force. We examine just such a cluster: the molds industry in Portugal. Our empirical approach is twofold: first, we examine the early evolution (1946–1986) of the industry; second, we use detailed data on firms and founders for the period 1987–2009 to test the predictions of the two theories. We find that while organizational reproduction has played a major role in clustering, agglomeration economies recently have gained influence. |
| Keywords: | Clusters, Spinoffs, Agglomeration Economies, Networks, External Capabilities |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1222&r=sbm |
| By: | Nakano, Makoto; Nguyen, Pascal |
| Abstract: | We analyze the role of board age on firm performance using a large sample of Japanese firms. The results reveal the existence of a significant negative relationship. After controlling for endogeneity using firm size as instrument, the effect of board age is found to be more significant, consistent with the notion that older directors are more likely to retain (relinquish) their positions in strongly (poorly) performing firms. In addition, we show that the performance of younger and high-growth firms is more sensitive to board age, which points to a risk-based explanation. Indeed, it appears that older boards are more reluctant to take risks and particularly to undertake acquisitions. Overall, the results underline the disadvantage of (re)appointing older managers since the latter tend to be more conservative, perhaps because of their shorter decision horizons or greater vested interests. |
| Keywords: | board of directors, top management, decision making, risk aversion, performance |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hcfrwp:2&r=sbm |
| By: | Francis Bidault (ESMT European School of Management and Technology) |
| Abstract: | Co-development alliances are formed to create new capabilities (technologies, products, services, processes, etc.) that partner organizations need in order to reach their goals. They involve the combination of competencies, and other intangible assets. These alliances typically face a high level of risks in terms of undesired leakages of confidential knowledge or failure to achieve the expected development. Relational quality, an important consideration in all alliances, is particularly key. Without it, partners might not be open enough to combine their knowledge effectively with the partners’. This article proposes a framework for defining, assessing, and monitoring relational quality in co-development alliances. |
| Keywords: | alliances, creative collaboration, innovation management, technology management, new product management, co-development, joint innovation |
| Date: | 2012–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:esm:wpaper:esmt-12-07&r=sbm |
| By: | Corine Genet (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Khalid Errabi (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Caroline Gauthier (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)) |
| Abstract: | Nanotechnologies are often presented as breakthrough innovations, where technology transfer and knowledge-bridging will play a pivotal role in the industrial dynamics. This article investigates the model of knowledge transfer in the nanotechnologies in depth, by comparing it with the models of two recently emerged technologies: biotech and microelectronics. Our results show that the nanotechnology transfer model is very different from that involved in biotechnology evolution: while small-medium firms play a valuable technology-bringing role, the central function of "translating" new knowledge between public research and industry is carried by the larger firms, just as it was in the early stages of the microelectronics sector. These results suggest that specific policy initiatives to facilitate biotech's transfer are inappropriate to boost the diffusion of nanotechnology. |
| Keywords: | Nanotechnology; Biotechnology; Microelectronics; Technology transfer |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemptp:hal-00749152&r=sbm |
| By: | Kim, Younjun; Orazem, Peter |
| Abstract: | The availability of broadband Internet service should have increased firm productivity and lowered firm entry costs. However, validating the broadband effect is complicated by the rapid deployment of broadband Internet service across metropolitan areas, removing meaningful variation in broadband availability. Deployment in rural markets was much more uneven, suggesting that the presence or absence of broadband service may have altered the site selection of firms targeting rural markets. We investigate the effect of broadband availability on firm location decision in rural Iowa. We establish a counterfactual baseline firm entry rate for each zip code area in rural counties by showing how the presence of broadband service in a ZIP code in 2001 affected firm entry in 1990-1992 before Broadband was available. We then measure how the actual presence of broadband service in the same ZIP code affected firm entry in 2000-2002. We show that the difference in estimated probability of entry between the counterfactual baseline and the actual response ten years later is the Difference-in-Differences estimate of the effect of broadband deployment on firm start-ups. We find that broadband availability in a rural ZIP code has a positive and significant effect on firm entry in the ZIP code but only in rural markets adjacent to a metropolitan area or with a larger urban population. Broadband access does not affect new firm entry in more remote rural markets |
| Keywords: | Internet; Rural; urban; : broadband; firm entry; metropolitan area |
| JEL: | M13 O33 R11 |
| Date: | 2012–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:35696&r=sbm |