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on Small Business Management |
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Issue of 2017‒11‒19
fourteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Andrea Bellucci (European Commission - Joint Research Centre and MoFiR); Luca Pennacchio (Università di Napoli Parthenope); Alberto Zazzaro (University of Naples Federico II, CSEF and MoFiR.) |
| Abstract: | This paper provides novel empirical evidence on the effectiveness of regional research and innovation policies for small and medium-sized enterprises (SMEs). It investigated two subsidy programs implemented at the regional level in central Italy. One program targeted SMEs’ individual investments in research, and the other focused on collaborative research between SMEs and universities. Using a matched difference-in-differences approach, the empirical analysis showed that the two programs had different effects. The first was successful in stimulating additional private R&D investment and improving firms’ performance. The second had weaker effects, mostly restricted to R&D expenditure and employment. These effects were not always uniformly distributed among project participants. |
| Keywords: | Public Subsidies; R&D; Impact Evaluation; SMEs; Cooperation; Regional Policy. |
| JEL: | H25 L52 O31 O38 R58 |
| Date: | 2017–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:488&r=sbm |
| By: | Qizhong YANG (The Graduate School of Economics, Osaka University); Tsunehiro OTSUKI (Osaka School of International Public Policy, Osaka University) |
| Abstract: | This study examined the impact of two PRERs released by the EU—RoHS and REACH—on Malaysian and Vietnamese firms’ compliance. The analysis considers productivity as a realization of innovations and examines the R&D enhancement effect of PRERs. The effect of PRERs on productivity is also broken down into direct and indirect effects through R&D enhancement. The result shows that the response to REACH can create incentives to advance R&D, and productivity can increase through both direct and indirect channels. No relationship between the response to RoHS and R&D expenditure is found. Further analysis shows that firms comply with RoHS and REACH in different ways, but just the ability to continue exporting to the EU motivates compliance. |
| Keywords: | RoHS, REACH, Innovation, Productivity, Porter Hypothesis |
| JEL: | F18 O31 Q55 Q56 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:osp:wpaper:17e007&r=sbm |
| By: | Dohse, Dirk; Goel, Rajeev K.; Nelson, Michael A. |
| Abstract: | This paper uses firm-level survey responses across more than 100 emerging and developing countries to examine whether female managers or female owners of firms were better at bringing innovations to the market. Employing a range of firm-specific and country-specific controls, the econometric results show that female owners of firms, rather than female managers, were more likely to introduce innovations. As expected, innovations resulted from firms engaging in R&D. Larger and older firms reinforced these tendencies; however, sole proprietorships had the opposite effect. The presence of an informal sector and finance availability constraints actually spurred innovation. Finally, the economy-wide effects of greater economic freedom and stronger patent protections were positive, while greater economic prosperity somewhat led to complacency. |
| Keywords: | innovation,female,owners,managers,patent protection,R&D,firm size,sole proprietorship |
| JEL: | O32 O33 O57 J16 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2091&r=sbm |
| By: | Mariana Chioncel; Jana Zifciakova (European Commission - JRC) |
| Abstract: | The 2016 series of the RIO Country Report analyses and assesses the development and performance of the national research and innovation system of the EU-28 Member States and related policies with the aim of monitoring and evaluating the EU policy implementation as well as facilitating policy learning in the Member States. |
| Keywords: | research and innovation, Romania, innovation system |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc105891&r=sbm |
| By: | Antoine Dechezlepretre, Ralf Martin, Myra Mohnen |
| Abstract: | Government policy in support of innovation often varies across technology areas. An important example are climate change policies that typically try to support so called clean technologies that avoid greenhouse gas pollution and hamper dirty technologies that are associated with polluting emissions. This paper explores the economic consequences of such policy moves in the short run. At the margin private returns of R&D investments in different areas should be equalised. Hence, shifting the composition of R&D activities by a policy intervention will only have a meaningful impact on economic outcomes if the external returns differ. Hence, we compare innovation spillovers between clean, dirty and other emerging technologies using patent citation data. We develop new methodology including the usage of Page rank measures developed by Google to rank web content. Exploring a wide range of robustness checks we consistently find up to 40% higher levels of spillovers from clean technologies. We also use firm-level financial data to investigate the impact of knowledge spillovers on firms’ market value and find that marginal economic value of spillovers from clean technologies is also greater. |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp135&r=sbm |
| By: | Gloria Cuevas-Rodríguez (Department of Business Organization and Marketing, Universidad Pablo de Olavide); Antonio Carmona-Lavado (Department of Business Organization and Marketing, Universidad Pablo de Olavide); Carmen Cabello-Medina (Department of Business Organization and Marketing, Universidad Pablo de Olavide) |
| Abstract: | In this research, we propose that biotech firms use Open Innovation (OI) configurations by combining three openness practices (number of alliances, breadth and external R&D) and five complementary organizational assets for openness (internal R&D, human capital, alliances coordination and interorganizational learning capabilities, and patenting) and that such configurations have influence on firm performance. From our empirical study on a sample of Spanish biotech firms, three predominant configurations are identified, which are located at different points in the openness continuum, and encompass different combinations of openness practices and organizational complementary assets. The most open configuration presents a significant superior performance while the least open is associated with the lowest performance. |
| Keywords: | Open Innovation, Configurations, Internal R&D, Human Capital, Coordination and Interorganizational Learning capabilities, and Patenting. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wpboam:17.02&r=sbm |
| By: | Goldman, Jim; Peress, Joël |
| Abstract: | Entrepreneurs undertake more R&D when financiers are better informed about their projects because they expect to receive more funding for successful projects. Conversely, financiers learn more about projects when entrepreneurs perform more R&D because then the opportunity cost of mis-investing is higher. Thus R&D and financial analysis are mutually reinforcing. Evidence based on two quasi-natural experiments supports this interaction. Quantitatively, investors' learning accounts for over a quarter of the total effect of a policy designed to stimulate R&D. A calibration suggests that the interaction's contribution to income growth represents a third of the total contributions of learning and R&D. |
| Keywords: | capital allocation; Financial Development; growth; Innovation; learning; technological progress |
| JEL: | G20 O31 O4 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12433&r=sbm |
| By: | Franck M. Adoho (World Bank, USA); Djeneba Doumbia (Paris School of Economics, France and World Bank, USA) |
| Abstract: | This paper uses 1-2-3 survey data on the Democratic Republic of Congo to analyze heterogeneity in the informal sector. It empirically identifies three types of entrepreneurs in the sector. The first group of entrepreneurs—top performers—is growth oriented and enjoys greater access to capital. The second group—constrained gazelles—includes entrepreneurs who share many characteristics, especially management skills, with the top performers, but operate with less capital. The third group—survivalists—comprises firms struggling to grow. Based on logit and fixed effect ordinary least squares models, the results show that poverty and income inequality are more common among constrained gazelles and survivalists. The paper also shows that income inequality is explained mainly by educational disparities and lack of credit access among entrepreneurs. Additionally, the outcomes of a Blinder-Oaxaca decomposition show that the performance of firms is a key factor in explaining differences in income. Examining the drivers of performance, the paper finds that human capital and managerial skills are important engines of performance. |
| Keywords: | Informal sector, income inequality, firm performance, Democratic Republic of Congo. |
| JEL: | D21 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2017-447&r=sbm |
| By: | Muge Adalet McGowan (OECD); Dan Andrews (OECD); Valentine Millot (OECD) |
| Abstract: | This paper explores the link between the design of insolvency regimes across countries and laggard firms’ multi-factor productivity (MFP) growth, using new OECD indicators of the design of insolvency regimes. Firm-level analysis shows that reforms to insolvency regimes that lower barriers to corporate restructuring are associated with higher MFP growth of laggard firms. These results are consistent with the idea that insolvency regimes that do not unduly inhibit corporate restructuring can incentivise experimentation and provide scope to reconfigure production and organisational structures in order to faciliate technological adoption. The results also highlight policy complementarities, with insolvency regimes that reduce the cost of entrepreneurial failure potentially enhancing the MFP gains from lowering administrative entry barriers in product markets. Finally, we find that reducing debt bias in corporate tax systems and well-developed venture capital markets are associated higher laggard firm MFP growth, suggesting that equity financing can also be an important driver of technological diffusion. These findings carry strong policy implications, in light of the fact that there is much scope to reform insolvency regimes in many OECD countries and given evidence that stalling technological diffusion has contributed to the aggregate productivity slowdown. |
| Keywords: | equity financing, insolvency, laggard firms, Productivity, technological diffusion, venture capital |
| JEL: | D24 G33 G34 K35 O16 O40 O43 O47 |
| Date: | 2017–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1425-en&r=sbm |
| By: | Veselova, Anna S.; Dikova, Desislava; Kazantcev, Anatoly K. |
| Abstract: | We use CassonÙ³ (1999) concept of (increasing) transaction and information costs adding to organizational complexity and expenditures, to arrive at an S-shaped relationship between degree of internationalization (DOI) and performance. To capture contextual complexity, we consider critical boundary conditions for the relationship DOIperformance of Russian firms, namely 1) the impact of environmental uncertainty, 2) firmlevel characteristics such as firm size and innovativeness and 3) the generic strategy followed by the Russian MNEs. We use a sample of 213 predominantly private and mature Russian MNEs. Our results show support for hypothesized S-shaped relationship; this relationship is conditional on the Russian firmsÙ degree of innovativeness and differentiation strategy. Environmental dynamics and firm size affect performance of internationalizing Russian firms to a lesser extent. |
| Keywords: | degree of internationalization, organizational complexity, expenditures, Russian MNCs, S-shape relationships, performance, environmental dynamics, firm size, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:sps:cpaper:8711&r=sbm |
| By: | OMRI, ANIS |
| Abstract: | The relationship between entrepreneurship, output and environmental quality receives considerable attention from academics and policymakers, as society searches for solutions leading to environmental sustainability. Given this context, the current study contributes to this discussion by explaining how entrepreneurship and different sectoral outputs can help resolve the environmental problems of global socio-economic systems. So, we used data for 69 countries split across four homogeneous income-based panels: high-income, upper-middle-income, lower-middle-income, and low-income economies. Long-run elasticities suggest that (i) the rate of environmental damage due to the growth of sectoral outputs is much higher in the high-income sample; (ii) compared to output from other sectors, services makes the highest contribution to environmental degradation in high-income countries but its contribution in the other country samples is negative; indicating that a move to services economy would be beneficial for these countries; (iii) with the exception of the high-income sample, there is an inverted U-shaped relationship between output growth and environmental degradation across country samples and sectors; (iv) the contribution of entrepreneurial activity to environmental degradation is lower in high-income countries compared to other country samples; and (v) entrepreneurship activity in high-income countries initially degrades the environment but then improves environmental quality after a certain level, that is, an inverted U-shaped relationship between entrepreneurship and environmental pollution. The findings are sensitive to different income groups and sectoral analyzes. In particular, these empirical findings aid sound economic policymaking for improving environmental quality and sustainable economic development. |
| Keywords: | Entrepreneurship; Sectoral outputs; Environment; Economic stages of development. |
| JEL: | C5 D2 O4 Q5 |
| Date: | 2017–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82450&r=sbm |
| By: | Adela Conchado (Universidad Pontificia Comillas, C/Alberto Aguilera 23, 28015 Madrid, Spain); Pedro Linares (Universidad Pontificia Comillas – Instituto de Investigación Tecnológica, Economics for Energy) |
| Abstract: | Innovation policy needs to respond to the complexity posed by sustainability goals and the globalization of innovation processes. Yet, current representations of technological innovation systems are not well suited to facilitate this view: they are built taking the diffusion of a technology as the main objective, rather than reflecting more broadly on its contributions to sustainability; and they have often focused on the interactions within a geography and not on interconnections among geographies. In this paper we propose a new ‘cut’ to technological innovation that puts the consideration of sustainability outcomes and international dynamics at its core: the Outcome-oriented Innovation Framework (OoIF). OoIF builds on key concepts from various strands of the innovation literature: innovation systems, innovation economics and sustainability transitions. We present the framework in detail, and provide a diagrammatic representation for it. We also reflect on its limitations, contributions and applications -particularly on how it allows to analyze the distribution of outcomes across differentiated activities and geographies. |
| Keywords: | technological innovation systems, innovation policy, sustainability, international dynamics, globalization |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2017-25&r=sbm |
| By: | Rafał Kierzenkowski (OECD); Peter Gal (OECD); Gabor Fulop (OECD) |
| Abstract: | The United Kingdom is preparing a modern industrial strategy to boost labour productivity across the whole country and to narrow regional gaps in living standards. This raises the question of the optimal allocation of scarce resources in meeting these targets. This study identifies industrial strengths of each region and scope to boost regional productivity through the channel of higher capital intensity. Overall regional investment ratios appear weakly linked to regional productivity, but the sectoral composition of regions and their type of investment are more important determinants. Each region has productivity leaders, but the concentration of such firms is the highest in the south of England. Differences in the representation of the most productive firms in regions are strongly related to differences in regional productivity. The empirical methodology quantifies the productivity effects of raising the capital intensity in each sector-region, focusing on viable firms falling behind the national productivity frontier in all but the finance and insurance sectors over 1995-2014. To enhance labour productivity of lagging regions, the industrial strategy should promote the catch up of firms with the national best performers in services sectors, in particular knowledge intensive services such as ICT and business services, but also wholesale and retail trade. This finding is consistent with the UK’s leading global position in high value-added services sectors. The type of investment matters: boosting research and development in the manufacturing sector in some lagging regions would also be effective in stimulating productivity. Manufacturing investment cannot be a substitute to investment in services given the small size of the manufacturing sector and its high exposure to competition from rapidly emerging global hubs. However, this study does not quantify the effects of skills, the benefits of greater industrial diversification and the positive impact that larger cities would have on agglomeration effects. |
| Keywords: | capital intensity, firms, industrial policy, industry, investment, productivity, R&D, regions, sectors, United Kingdom |
| JEL: | L52 O14 O18 O25 |
| Date: | 2017–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1426-en&r=sbm |
| By: | Jonathan F. Lee |
| Abstract: | I model a firm's decision to create an invention and, separately, her decision to protect that invention with intellectual property (IP). Because external forces, such as industry characteristics or policy regimes, can affect the innovation and protection decisions differently, the model predicts that innovation measures based on IP usage, such as patent counts, may not correlate with innovative effort. For example, the threat of competition generally has an inverse-U shaped relationship with observed patenting but has a normal-U relationship with innovative effort. In this case, the average quality of a firm's patent portfolio is a better proxy for innovation. I derive general conditions under which various patent statistics, such as quality-adjusted patenting or average patent quality, are useful proxies for how innovation responds to external influences. |
| JEL: | K11 L24 O31 O34 |
| Date: | 2017–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:jmp:jm2017:ple823&r=sbm |