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on Small Business Management |
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Issue of 2013‒12‒06
five papers chosen by Joao Carlos Correia Leitao Universidade da Beira Interior and Universidade de Lisboa |
| By: | Schubert , Torben (Fraunhofer Institute for Systems and Innovation Research (ISI) And CIRCLE, Lund University, Sweden); Andersson , Martin (CIRCLE, Lund University, Sweden and Blekinge Institute of Technology) |
| Abstract: | There is consistent evidence in the literature that average employee age is negatively related to firm-level innovativeness. This observation has been explained by older employees working with outdated technological knowledge and being characterized by reduced cognitive flexibility. We argue that firms can mitigate this effect through employee turnover. In particular turnover of R&D workers is deemed a vehicle for transfer of external knowledge to the firm, which can compensate for lower cognitive flexibility and up-to-date knowledge among older workers. We use a matched employer-employee dataset based on three consecutive CIS surveys for Sweden to test our predictions. Our results suggest a) that overall employee age impacts negatively on product innovation activities (both in terms of propensity and success), b) that the effect of em-ployee staying rate (measured by the share of employees that remain in the firm from one year to the next) on innovation follows an inverted U-shape implying an ‘optimal’ level of employment turnover, and c) that this ‘optimal’ value is lower for firms with older employees. The latter suggests that firms with older employees can at least partially compensate an aged workforce by increased employment turnover. |
| Keywords: | ageing; employee age; innovation; firm performance; R&D; human capita |
| JEL: | D22 J21 J24 L25 |
| Date: | 2013–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_029&r=sbm |
| By: | Tavassoli, Sam (CSIR, Blekinge Inst of Technology) |
| Abstract: | This paper analyzes how the influence of firm-level innovation determinants varies over the industry life cycle. Two sets of determinants are distinguished: (1) determinants of a firm’s innovation propensity, i.e. the likelihood of being innovative and (2) determinants of its innovation intensity, i.e. innovation sales. By combining the literature emphasizing firms’ internal resources (micro level) with the research strand on the role of the industry context (meso-level), the paper develops hypotheses about the relative importance of firm-level innovation determinants over the industry life cycle. Estimation of a firm-level model of innovation in Sweden, while acknowledging the stage of the life cycle of the industry a firms belongs to, shows that the importance of the determinants of innovation propensity and intensity are not equal over the stages of an industry’s life cycle. |
| Keywords: | Determinants of innovation; innovation intensity; innovation propensity; Industry Life Cycle (ILC); Community Innovation Survey (CIS4) |
| Date: | 2013–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bthcsi:2012-011&r=sbm |
| By: | Fryges, Helmut; Müller, Bettina; Niefert, Michaela |
| Abstract: | One way through which knowledge and technology transfer can take place is through the foundation of new firms by former employees of incumbent private firms. In this paper, we examine whether knowledge transferred from the incumbent causally affect employment growth and postentry innovation activities of the new firm. We focus on start-ups for which a new idea (a new product, technology, production process or management concept), which the founder developed during her work as an employee, was essential for setting up the new business. These firms are denoted corporate spinoffs. Using data from German start-ups founded in the period from 2005 to 2008, we apply nearest neighbour propensity score matching. We find that corporate spinoffs outperform other start-ups founded by former employees of incumbent private firms that are not based on an essential idea in terms of post-entry innovation activities. However, we cannot show that corporate spinoffs benefit from the transferred idea in terms of employment growth. We conclude that a transferred idea is primarily an input factor and a stimulus for subsequent post-entry innovation activities of corporate spinoffs. -- |
| Keywords: | knowledge and technology transfer,corporate spinoffs,propensity score matching,KfW/ZEW Start-Up Panel |
| JEL: | L26 L25 O31 C21 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13093&r=sbm |
| By: | Andersson, Martin (CIRCLE, Lund University, Sweden and Blekinge Institute of Technology); Larsson , Johan P. (Centre for Entrepreneurship and Spatial Economics (CEnSE), Department of Economics, Finance and Statistics, Jönköping International Business School (JIBS), Jönköping) |
| Abstract: | Entrepreneurial activity is significantly predicted by the presence of other entrepreneurs in the residential neighborhood. One plausible source of such spatial clustering is local peer effects, where individuals’ decisions to become entrepreneurs are influenced by entrepreneurial neighbors. Using geo-coded matched employer-employee data for Sweden, we find that sharing residential neighborhood with established entrepreneurs has a statistically significant and robust influence on the probability than an individual leaves employment for entrepreneurship. An otherwise average neighborhood with a 5 percentage point higher entrepreneurial intensity all else equal produces between 7 and 8 more entrepreneurs per square kilometer, each year. Local peer effects appear as important in explaining local clusters of entrepreneurs, and imply a local feedback-effect in which the presence of established entrepreneurs in a neighborhood breeds new local entrepreneurs |
| Keywords: | entrepreneurship; clusters; peer effects; local social interactions; role models; neighborhood; social network externalities; path dependence |
| JEL: | J24 L26 R12 R23 |
| Date: | 2013–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_030&r=sbm |
| By: | Chaminade , Cristina (CIRCLE, Lund University); Plechero , Monica (IRPPS-CNR, Italy and CIRCLE, Lund University, Sweden) |
| Abstract: | Abstract Access to global innovation networks (GINs) has been unequal across the regions of the world. While certain regions are considered knowledge hubs in GINs, others still remain marginalized; this points to the role of regional innovation systems in the emergence and development of GINs. Using firm-level data collected through a survey and case studies in 2009–2010, this article systematically compares the patterns of global networks in the ICT industry in a selection of European, Chinese and Indian regions. The results show that GINs are more common in regions which are not organizationally and institutionally thick, suggesting that GINs may be a compensatory mechanism for weaknesses in the regional innovation system. |
| Keywords: | globalization; innovation networks; regions; Europe; India; China |
| JEL: | O30 |
| Date: | 2013–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_032&r=sbm |