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on Small Business Management |
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Issue of 2020‒01‒27
eight papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Okamuro, Hiroyuki; Nishimura, Junichi |
| Abstract: | Regional innovation policies have been implemented in several countries. In Japan, the controlled decentralization of traditionally centralized innovation policy is ongoing. Thus, we can observe the multilevel policy mix of public R&D (research and development) subsidies by national, prefecture, and city governments. However, empirical studies on multilevel R&D support, using panel data and considering the municipality level, are scarce. Based on original survey data and on the financial data for manufacturing SMEs (small and medium sized enterprises), we estimate their TFP (total factor productivity) and we empirically investigate the effects of public R&D subsidies by national, prefecture, and city governments. We employ firm-level fixed effect panel estimation to control for the effects of any unobservable time-invariant factors. We find that, with a two year lag, city and prefecture subsidies show positive and significant effects on TFP, which also persisted after the subsidy period. However, multilevel subsidies, especially those involving city subsidies, additionally and persistently increase recipients’ TFP. These results suggest significant advantages for the multilevel policy mix, especially those involving the city subsidy. |
| Keywords: | R&D subsidy, local authority, multilevel policy mix, SMEs, policy evaluation |
| JEL: | H71 O38 R58 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:hit:ccesdp:70_v2&r=all |
| By: | Obschonka, Martin; Lee, Neil; Rodríguez-Pose, Andrés; Eichstaedt, johannes Christopher; Ebert, Tobias |
| Abstract: | There is increasing interest in the potential of artificial intelligence and Big Data (e.g., generated via social media) to help understand economic outcomes and processes. But can artificial intelligence models, solely based on publicly available Big Data (e.g., language patterns left on social media), reliably identify geographical differences in entrepreneurial personality/culture that are associated with entrepreneurial activity? Using a machine learning model processing 1.5 billion tweets by 5.25 million users, we estimate the Big Five personality traits and an entrepreneurial personality profile for 1,772 U.S. counties. We find that these Twitter-based personality estimates show substantial relationships to county-level entrepreneurship activity, accounting for 20% (entrepreneurial personality profile) and 32% (all Big Five trait as separate predictors in one model) of the variance in local entrepreneurship and are robust to the introduction in the model of conventional economic factors that affect entrepreneurship. We conclude that artificial intelligence methods, analysing publically available social media data, are indeed able to detect entrepreneurial patterns, by measuring territorial differences in entrepreneurial personality/culture that are valid markers of actual entrepreneurial behaviour. More importantly, such social media datasets and artificial intelligence methods are able to deliver similar (or even better) results than studies based on millions of personality tests (self-report studies). Our findings have a wide range of implications for research and practice concerned with entrepreneurial regions and eco-systems, and regional economic outcomes interacting with local culture. |
| Date: | 2018–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:c62tn&r=all |
| By: | Kashiwagi, Yuzuka (Waseda University) |
| Abstract: | This paper examines the effect of capital subsidies after great disasters on the recovery of small and medium-sized enterprises (SMEs) using propensity score matching estimations. The estimates show that capital subsidies were effective for the recovery of the performance of SMEs in the retail sector. However, in manufacturing and other service sectors, it finds no significant difference between the recovery of SMEs with and without the subsidy. Utilizing firm-level supply chain data, it further explores the mechanism behind the heterogeneity across sectors. The results suggest that the heterogeneity comes from variations in the degree of private support across sectors rather than variations in supply chain disruption. |
| Keywords: | disasters; enterprise recovery; microeconomic impact of aid; supply chains |
| JEL: | L10 Q54 R10 |
| Date: | 2019–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0597&r=all |
| By: | Patrick Lehnert; Curdin Pfister; Dietmar Harhoff; Uschi Backes-Gellner |
| Abstract: | This study analyzes how universities of applied sciences (UASs) - bachelor-granting three-year colleges teaching and conducting applied research - affect regional innovation. We particularly focus on regional complementarities between such applied research institutions and basic ones. We exploit variation in the location and timing of UAS establishments in Germany. To account for endogeneity, we apply fixed effects estimations and control for regional economic activity by implementing a proxy based on 30 years of satellite data. We find that UASs increase innovation with a substantially larger effect in regions where other (basic and applied) public research organizations coexist. This result indicates strong knowledge complementarities. In an additional analysis, we also find that UASs accelerate innovation in the regions belonging to the former German Democratic Republic. |
| JEL: | I23 O31 O38 R11 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:iso:educat:0164&r=all |
| By: | Cozzi, Guido; Galli, Silvia |
| Abstract: | Schumpeterian growth theory based on creative destruction was originally designed for continuous time innovation and growth models. However its recently expanding use in DSGE modelling calls for an easily usable discrete time recast. We here show how to construct a discrete time version of creative destruction fully equivalent to its continuous time counterpart. |
| Keywords: | R&D and Growth; Creative Destruction; Discrete Time; DSGE. |
| JEL: | E3 O3 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97364&r=all |
| By: | Silviano Esteve-Pérez; Fabio Pieri; Diego Rodriguez |
| Abstract: | This paper analyzes the episodes (spells) of high-growth in firm size and tracks their length in a sample of Spanish manufacturing firms observed over about two decades. The use of duration models allows us (i) to take a year-on-year perspective in the analysis of episodes and persistence in high-growth, (ii) to study the determinants of the transitions to and from the high-growth state, and (iii) to check if these factors change their role across the business cycle. |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaeee:eee2020-03&r=all |
| By: | Lambert, Thomas; Velardo, Tristan |
| Abstract: | Joseph Schumpeter’s writings on entrepreneurship and innovation have had a profound impact on economic theory and economic thought. Schumpeter initially saw the small entrepreneur as the source of innovation and economic growth within an economic system but later saw large corporations as the source of much innovation. Because large corporations, and in modern times many governments and universities as well, play such a large role in funding research and development and new innovations, much of the bank financing of innovation is done by smaller banks for small entrepreneurs and their ideas. Venture capitalists and self-financing are the other two major forms of small entrepreneur/small business financing. Meanwhile, the financial markets (stocks and bond markets) only indirectly play a role in funding the innovation of large corporations via changes in these firms’ stock prices. Changes in stock prices reflect an estimate of the large firms’ research and development efforts and their prospects for profitable, future innovation. Much corporate research and development is financed internally within the organization as an expense of doing business. Meanwhile, government and university funding through tax dollars and non-profit sources indirectly subsidize corporate innovation because governmental entities and universities take on risks that the private sector will often not tolerate. Yet, large corporations are often the beneficiaries of such governmental and university financing of research and development efforts. In today’s times, Schumpeter would be impressed with the success of large firms regarding innovation but probably would be disappointed about the marginalization of the small entrepreneurial firm and the banking system and their diminished roles in innovation. This paper summarizes Schumpeter’s views on how the banking system and financial markets could play a role in innovation and explains how a modern day monopoly capital system (Baran and Sweezy 1966) and its financial system have transformed entrepreneurship and innovation away from small business and innovation by the small entrepreneur. Baran, Paul A, and Paul M Sweezy. 1966. Monopoly Capital: An Essay on the American Economic and Social Order. New York: Monthly Review Press. |
| Keywords: | banking, innovation, small business, big business |
| JEL: | B26 B31 B51 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97742&r=all |
| By: | Muendler, Marc-Andreas; Rauch, James E |
| Keywords: | Employee spinoffs, Intrafirm learning, Export spillovers, Firm performance, Economics |
| Date: | 2018–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:ucsdec:qt48x4h573&r=all |