|
on Small Business Management |
|
Issue of 2015‒05‒09
seven papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Luca Stanca; Herbert Dawid; Mariacristina Piva; Marco Vivarelli |
| Abstract: | This paper investigates, both theoretically and empirically, the implications that complementary assets needed for the formation of start-ups -proxied by the ease of access to financial resources- have on the innovative efforts of incumbent firms. In particular, we develop a theoretical model, highlighting a strategic incentive effect by which the innovative efforts of incumbent firms are decreasing in the availability of the complementary assets needed for the creation of a startup. The empirical relevance of this effect is investigated by using firm level data drawn from the third Italian Community Innovation Survey covering the period 1998-2000. The results of our empirical analysis support our theory-based insights. |
| Keywords: | R&D, Innovation, Start-up, Complementary Assets |
| Date: | 2015–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2015/12&r=sbm |
| By: | BEDU Nicolas; VANDERSTOCKEN Alexis |
| Abstract: | Many studies have looked at the effectiveness of public schemes supporting private R&D but few have highlighted the role regions play in R&D funding. The present article assesses the R&D support package developed in the Aquitaine, France’s number one region in terms of proportion of budget spent on innovation. Its findings show that regional subsidies have induced local SMEs to increase their R&D resources and accelerate their expansion. More broadly, the article enhances understanding of the determinants explaining the effectiveness of public actions supporting private R&D. |
| Keywords: | SME, R&D subsidies, regional Science and Technology policy, public policy evaluation. |
| JEL: | H71 O3 R11 R58 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2015-13&r=sbm |
| By: | Isabel Bodas Freitas (Grenoble School of Management); Fulvio Castellacci (TIK Centre, University of Oslo); Roberto Fontana (Bocconi University); Franco Malerba (Bocconi University); Andrea Vezzulli (Bocconi University) |
| Abstract: | Do the additionality effects of R&D tax credits vary across sectors? The paper presents a microeconometric analysis of this question for three countries: Norway, Italy and France. We use a panel of firm-level data from three waves of the Innovation Surveys carried out in these countries, referring to the years 2004, 2006 and 2008 respectively. The study estimates input and output additionality effects of R&D tax credits in each of these economies, and it investigates how these effects differ across sectors characterized by different R&D orientation and competition conditions. The results point out that firms in industries with high R&D orientation and in sectors with high market concentration are on average more responsive to fiscal incentives to R&D. |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20150424&r=sbm |
| By: | Amess, Kevin; Stiebale, Joel; Wright, Mike |
| Abstract: | The paper analyses the impact of private equity (PE) backed leveraged buyouts (LBOs) on innovation output (patenting). Using a sample of 407 UK deals we find that LBOs have a positive causal effect on patent stock and quality-adjusted patent stock. Our results imply a 6% increase in quality-adjusted patent stock three years after the deal. The increase in innovation activity is concentrated among private-to-private transactions with a 14% increase in the quality-adjusted patent stock. Further analysis supports the argument that PE firms facilitate the relaxation of financial constraints. We also rule out alternative explanations for portfolio firms' higher patenting activity. Our findings suggest that PE firms do not promote short-term cost-cutting at the expense of entrepreneurial investment opportunities with a long-term payoff. |
| Keywords: | private equity,leveraged buyout,entrepreneurial buyouts,innovation |
| JEL: | D22 G32 G34 L26 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dicedp:184&r=sbm |
| By: | Kokko, Ari; Tingvall, Patrik Gustavsson; Videnord, Josefin |
| Abstract: | In this paper the authors conduct a meta-analysis to examine the link between R&D spending and economic growth in the EU and other regions. The results suggest that the growth-enhancing effect of R&D in the EU15 countries does not differ from that in other countries in general, but it is less significant than that for other industrialized countries. A closer inspection of the data reveals that the weak results for the EU15 stem from comparisons with the US - the US has been able to generate a stronger growth response from its R&D spending. Possible explanations for the US advantage include higher private sector investment in R&D and stronger public-private sector linkages than in the EU. Hence, to reduce the "innovation gap" vis-à-vis the US, it may not be enough for the EU to raise the share of R&D expenditures in GDP: continuous improvements in the European innovation system will also be needed, with focus on areas like private sector R&D and public-private sector linkages. |
| Keywords: | meta-analysis,R&D,European Union,EU15,USA,economic growth |
| JEL: | F43 O51 O52 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201529&r=sbm |
| By: | Rekik, Sabrine |
| Abstract: | This paper contributes to literature by giving more precise measures to technological innovation in order to estimate its economic value and assess its impact on the financial performance of companies in Europe. Focus is given to European patent system which is different from the American one. Financial and innovation data are collected during 1990- 2012, for 599 companies belonging to 15 industries. According to market value approach, the relationship between market-to-book ratio and knowledge assets is proved to be positive and significant. Innovation is more valuable when it contributes to wider knowledge transfer, has larger geographical and technological scopes and radical character. |
| Keywords: | Technological innovations; Economic value; Financial performance of companies; European patent system; Knowledge transfer; |
| JEL: | G31 L25 O32 O33 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:dau:papers:123456789/14997&r=sbm |
| By: | Paul Gompers (Harvard Business School, Finance Unit); Steven N. Kaplan (University of Chicago Booth School of Business); Vladimir Mukharlyamov (Harvard University) |
| Abstract: | We survey 79 private equity investors with combined AUM of over $750B about their practices in firm valuation, capital structure, governance, and value creation. Investors rely primarily on IRR and multiples to evaluate investments. Their LPs focus more on absolute performance. Capital structure choice is based equally on optimal trade-off and market timing considerations. PE investors anticipate adding value to portfolio companies, with a greater focus on increasing growth than on reducing costs. We also explore how the actions that PE managers say they take group into specific firm strategies and how those strategies are related to firm founder characteristics. |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:15-081&r=sbm |