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on Small Business Management |
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Issue of 2022‒10‒03
eighteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Silvia Appelt; Matej Bajgar; Chiara Criscuolo; Fernando Galindo-Rueda |
| Abstract: | This report presents new insights on trends in business R&D performance and funding, drawing on the micro-aggregated R&D and tax relief statistics collected for 21 OECD countries as part of the OECD microBeRD project. Micro-aggregated statistics provide an important input for policy analysis, highlighting important variations in business R&D performance and funding across industries and different types of firms that are hard to uncover based on aggregate R&D and tax relief statistics. They shed light on country and industry specific trends in the concentration of R&D activity, business R&D dynamics, the structure of R&D performance among different types of firms and the way that they fund their R&D activities. Such evidence can be relevant in assessing the contribution of different types of firms (e.g. young firms, foreign-controlled affiliates) and individuals (e.g. female R&D staff, doctorate holders) to research and development in the business sector and designing business R&D support policies. |
| Keywords: | additionality, government support, impacts, research and development, tax incentives |
| JEL: | O38 H25 L25 |
| Date: | 2022–09–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2022/04-en&r= |
| By: | Otrachshenko, Vladimir (Justus Liebig University, Giessen); Popova, Olga (Leibniz Institute for East and Southeast European Studies (IOS)); Nikolova, Milena (University of Groningen); Tyurina, Elena |
| Abstract: | We theoretically and empirically examine how acquiring new skills and increased financial worries influenced entrepreneurship entry and exit intentions during the pandemic. To that end, we analyze primary survey data we collected in the aftermath of the COVID-19's first wave in Russia, which has had one of the highest COVID-19 infection rates globally. Our results show that acquiring new skills during the pandemic helps maintain an existing business and encourages start-ups in sectors other than information technology (IT). For IT start-ups, having previous experience matters more than new skills. While the pandemic-driven financial worries are associated with business closure intentions, they also inspire new business start-ups, highlighting the creative destruction power of the pandemic. Furthermore, preferences for formal employment and remote work also matter for entrepreneurial intentions. Our findings enhance the understanding of entrepreneurship formation and closure in a time of adversity and suggest that implementing entrepreneurship training and upskilling policies during the pandemic can be an important policy tool for innovative small business development. |
| Keywords: | business entry, information technology (IT), business closure, COVID-19, entrepreneurship intentions, self-employment, Russia |
| JEL: | E24 J24 L26 P20 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15526&r= |
| By: | Leogrande, Angelo; Costantiello, Alberto; Laureti, Lucio |
| Abstract: | In this article we investigate the determinants of “New Doctorate Graduates” in Europe. We use data from the EIS-European Innovation Scoreboard of the European Commission for 36 countries in the period 2010-2019 with Pooled OLS, Dynamic Panel, WLS, Panel Data with Fixed Effects and Panel Data with Random Effects. We found that “New Doctorate Graduates” is positively associated, among others, with “Human Resources” and “Government Procurement of Advanced Technology Products” and negatively, associated among others, with “Total Entrepreneurial Activity” and “Innovation Index”. We apply a clusterization with k-Means algorithm either with the Silhouette Coefficient either with the Elbow Method and we found that in both cases the optimal number of clusters is three. Furthermore, we use the Network Analysis with the Distance of Manhattan, and we find the presence of seven network structures. Finally, we propose a confrontation among ten machine learning algorithms to predict the value of “New Doctorate Graduates” either with Original Data-OD either with Augmented Data-AD. Results show that SGD-Stochastic Gradient Descendent is the best predictor for OD while Linear Regression performs better for AD. |
| Keywords: | Innovation, and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Diffusion Processes; Open Innovation. |
| JEL: | O3 O30 O32 |
| Date: | 2022–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114452&r= |
| By: | YAMORI Nobuyoshi; NAGATA Kunikazu; KONDO Kazumine; OKUDA Masayuki |
| Abstract: | This paper examines whether the startup support provided by regional financial institutions contribute to startups in the region and which initiatives of regional financial institutions are effective in supporting startups, using the questionnaire information from two surveys. The analysis based on the 2020 startup firm questionnaire indicates that in the prefectures where firms have high opinions of regional financial institutions' support, more startup firms are founded, and the startup rate increases. Banks that are more highly motivated to support startups also have higher firms’ ratings for their capacity for lending without collateral or guarantees and evaluating business potential. The analysis comparing the 2020 startup firm questionnaire with the 2017 RIETI branch manager questionnaire shows that in prefectures where banks rely too heavily on collateral and guarantees, the assessments of banks’ loans and non-financing capacity decrease. Banks that are highly motivated to support startups make lending decisions based more on the management’s qualifications and motivations, and the evolution of business potential is vital in supporting startups. |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:22033&r= |
| By: | Thirarut Worapishet (Kasetsart University) |
| Abstract: | This research was conducted to combine elements of the scattered entrepreneurial marketing (EM) concepts. The EM concepts of various researchers from the secondary sources appeared in the SSCI database since 1988 were reviewed. Seven papers selected by convenient sampling method were found. Concepts were analyzed by deductive coding, thematic analysis. Finally, there were 9 common dimensions of EM concept including innovation, niche marketing, promoting by word-of-mouth, networking, using available resources, setting affordable loss, taking opportunities, proactiveness and customer relationship at personal level. Under innovation dimension, there were four codes including creating new product form intuitive feel, innovation in every part, continuous initiative and customer centric to create value. Under niche marketing, there were two codes including positioning based on niche group then targeting later and niche in product, price, place, promotion with the support of e-technology. Under networking, there were five codes including sharing resources among network, co-create opportunities as teamwork from network connections, networking help create innovation, Informal research by listening to customers / connection and all stakeholders and knowledge sharing among network. |
| Keywords: | Entrepreneurial marketing, Deductive coding, Thematic analysis, Entrepreneur, Entrepreneurship, Entrepreneurial marketing code frame |
| JEL: | L26 M00 M31 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:12915570&r= |
| By: | Yuheng Ding; Karam Jo; Seula Kim |
| Abstract: | This paper constructs a patent assignee-firm longitudinal bridge between U.S. patent assignees and firms using firm-level administrative data from the U.S. Census Bureau. We match granted patents applied between 1976 and 2016 to the U.S. firms recorded in the Longitudinal Business Database (LBD) in the Census Bureau. Building on existing algorithms in the literature, we first use the assignee name, address (state and city), and year information to link the two datasets. We then introduce a novel search-aided algorithm that significantly improves the matching results by 7% and 2.9% at the patent and the assignee level, respectively. Overall, we are able to match 88.2% and 80.1% of all U.S. patents and assignees respectively. We contribute to the existing literature by 1) improving the match rates and quality with the web search-aided algorithm, and 2) providing the longest and longitudinally consistent crosswalk between patent assignees and LBD firms. |
| Keywords: | Innovation, Patent, Patent-firm Concordance, Linked Administrative Data |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:22-31&r= |
| By: | Ufuk Akcigit (University of Chicago); Salomé Baslandze (Federal Reserve Bank of Atlanta); Francesca Lotti (Bank of Italy) |
| Abstract: | How do political connections affect firm dynamics, innovation, and creative destruction? We extend a Schumpeterian growth model with political connections that help firms ease their bureaucratic and regulatory burden. The model highlights how political connections influence an economy's business dynamism and innovation, and generate a number of implications guiding our empirical analysis. We construct a new large-scale dataset, for the period 1993-2014, on the universe of firms, workers, and politicians, supplemented by corporate financial statements, patent and election data, so as to define connected firms as those employing local politicians. We identify a leadership paradox: market leaders are much more likely to be politically connected, but much less likely to innovate. Political connections relate to a higher rate of survival, as well as growth in employment and revenues, but not in productivity. This result was also confirmed using the regression discontinuity design. At the aggregate level, gains from political connections do not offset losses stemming from lower reallocation and growth. |
| Keywords: | firm dynamics, innovation, political connections, creative destruction, productivity |
| JEL: | O3 O4 D7 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1376_22&r= |
| By: | Katrin Hussinger (Université du Luxembourg); Wunnam Basit Issah (University of Leicester) |
| Abstract: | Family firms are known for their reluctance to invest in research and development. We show that strengthened trade secret protection is associated with higher R&D investment by family firms. More specifically, we show that the association between the strength of trade secret protection through the U.S. Uniform Trade Secrets Act and R&D investment is positively moderated by family control. Our results further show that the positive moderation of family control on the association between the strength of trade secret protection and R&D investment varies with the industry context, being stronger in high tech industries and weaker in discrete product industries. |
| Keywords: | Family firms; intellectual property protection; trade secret protection; UTSA; R&D investments; socioemotional wealth. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:22-11&r= |
| By: | NAKAMURA Tsuyoshi; OHASHI Hiroshi |
| Abstract: | Markup, or the ratio of price to cost, depends on the firm's attributes and the market environment where the firm operates. This paper empirically studies the relationship between the markups of firms and their firm-to-firm transactional status. More specifically, we analyze the correlation between markups and the number and variety of the firm’s transactional partners. Based on a comprehensive panel dataset of Japanese firms derived from the Basic Survey of Japanese Business Structure and Activities, provided by METI, and the Firm Relation File of TSR (Tokyo Shoko Research) for 2007-2018, we find that a firm's markup level decreases as the number of suppliers (upstream transactional partners) increases, after controlling for firm attributes such as size and age, and industry-specific time effects. This empirical pattern is observed for both manufacturing and non-manufacturing sectors. As for the firm’s number of customers (downstream transactional partners), the empirical results differ between manufacturing and non-manufacturing sectors. We further examine the correlation between the number of transactional partners a firm has and the characteristics of those transactional partners. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:22083&r= |
| By: | D’Arcangelo, Filippo Maria; Pavan, Giulia; Calligaris, Sara |
| Abstract: | The European Union Emissions Trading System has raised concerns about possible detrimental effects on firms production through an increase in polluting costs, unless firms change inputs or increase the efficiency in the way they produce. We provide evidence of the causal impact of this policy on firms' input choices and on total factor productivity on Italian manufacturing firms. Our empirical strategy combines structural estimation of firms' production function and techniques for policy valuation. Moreover, we argue that a commonly used strategy in this literature, consisting in using propensity score matching on the productivity obtained from estimating the production function, does not provide valid inference. We rely instead on an innovative structural approach. We find that the policy has a small negative effect on productivity that is heterogeneous across industries. We show that these findings are consistent with firms switching fuels in production, rather than undergoing a substantial process change. |
| Keywords: | Financial Economics, Production Economics, Productivity Analysis, Resource /Energy Economics and Policy |
| Date: | 2022–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:324170&r= |
| By: | Damien Dussaux (OECD); Shardul Agrawala (OECD) |
| Abstract: | Innovation is key to reducing the environmental impacts of plastics. However, literature is generally lacking in the field of environmentally relevant plastics innovation. This paper develops an innovative conceptual framework to document and map environmentally relevant plastics innovation. Using this framework, it develops plastics innovation metrics using patents and trademarks to quantify trends over time, across countries, and to establish preliminary empirical links between policies and innovation outcomes.Plastic waste prevention and recycling innovation has increased slightly more rapidly than overall plastics innovation. In contrast, innovation in bioplastics have witnessed a significant slowdown in recent years. Another key finding of this analysis is that environmentally relevant plastics innovation is concentrated in OECD countries and China and that top inventor countries are not specialized in the same technologies. Finally, the patent analysis shows some empirical evidence that recycling regulations may have triggered innovative activity in plastic recycling. |
| Keywords: | Circular economy, Environmental Policy, Innovation, Plastics, Recycling, Waste |
| JEL: | O31 O38 Q53 Q55 Q58 |
| Date: | 2022–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:199-en&r= |
| By: | Jozef Konings; Glenn Magerman; Dieter Van Esbroeck |
| Abstract: | We analyze the impact of Covid-19 rescue policies on both firm-level and aggregate productivity growth and reallocation. Using administrative data on the universe of firms’ subsidies in Flanders, we estimate the causal impact of these subsidies on firm-level outcomes. Firms that received subsidies saw a 7% increase in productivity, compared to firms that applied for, but did not obtain subsidies. Furthermore, the propensity to exit the market was 43% lower for treated firms. Aggregate productivity growth, a share-weighted sum of firms’ productivity evolutions, amounted to 6% in 2020. While within-firm productivity growth was similar for both subsidized and non-subsidized firms, there is a reallocation of market shares from subsidized firms to non-subsidized firms. These results suggest that Covid rescue policies helped firms to sustain and preserve productivity, while not obstructing allocative efficiency gains to non-subsidized firms. |
| Keywords: | Productivity, productivity growth, aggregate productivity, allocative efficiency |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/349952&r= |
| By: | Ambre Scarmoncin (AP-HP - Assistance publique - Hôpitaux de Paris (AP-HP)); Clothilde Portelli (Humaniteam Design); Ferney Osorio (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Guillaume Eckerlein (AP-HP - Assistance publique - Hôpitaux de Paris (AP-HP)) |
| Abstract: | Along with the first pandemic wave of COVID-19, many makers' initiatives shed light on the innovative potential of developing computer assisted machinery services for the health sector. Even since before that, collaborative innovation structures such as FabLabs have been arising in public health institutions, which indicates the increasing demand for technological tools as well as innovation assistance in the public health sector. However, how FabLabs facilitate innovation processes contingent on hospital context is a question that needs to be further explored. In this article, a single case study on the Hephaïstos FabLab at the Bicêtre Hospital in France is developed in order to understand the role that a FabLab service can play in fostering innovation in a hospital ecosystem. The results show how innovation is stimulated by the FabLab proximity, the methodological approach developed by the FabLab team and the participants' profiles. These insights are pertinent for hospital managers to help identify strategies and ensure continuity of a FabLab service. |
| Keywords: | public hospital,health institution,innovation,design thinking,FabLab |
| Date: | 2022–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03724843&r= |
| By: | Martin Hiti; Claire Kramer; Asani Sarkar |
| Abstract: | Recent research has linked climate change and socioeconomic inequality (see here, here, and here). But what are the effects of climate change on small businesses, particularly those owned by people of color, which tend to be more resource-constrained and less resilient? In a series of two posts, we use the Federal Reserve’s Small Business Credit Survey (SBCS) to document small businesses’ experiences with natural disasters and how these experiences differ based on the race and ethnicity of business owners. This first post shows that small firms owned by people of color sustain losses from natural disasters at a disproportionately higher rate than other small businesses, and that these losses make up a larger portion of their total revenues. In the second post, we explore the ability of small firms to reopen and to obtain disaster relief funding in the aftermath of climate events. |
| Keywords: | climate risk; small business; minority-owned business; disaster relief; inequality; Sandy; credit |
| JEL: | D63 G21 |
| Date: | 2022–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:94729&r= |
| By: | Andrew Caplin (New York University and NBER); Minjoon Lee (Carleton University); Søren Leth-Petersen (University of Copenhagen); Johan Sæverud (University of Copenhagen); Matthew D. Shapiro (University of Michigan and NBER) |
| Abstract: | How worker productivity evolves with tenure and experience is central to economics, shaping, for example, life-cycle earnings and the losses from involuntary job separation. Yet, worker-level productivity is hard to identify from observational data. This paper introduces direct measurement of worker productivity in a firm survey designed to separate the role of on-the-job tenure from total experience in determining productivity growth. Several findings emerge concerning the initial period on the job. (1) On-the-job productivity growth exceeds wage growth, consistent with wages not being allocative period-by-period. (2) Previous experience is a substitute, but a far less than perfect one, for on-the-job tenure. (3) There is substantial heterogeneity across jobs in the extent to which previous experience substitutes for tenure. The survey makes use of administrative data to construct a representative sample of firms, check for selective non-response, validate survey measures with administrative measures, and calibrate parameters not measured in the survey. |
| Keywords: | Productivity, Wages, Tenure, Experience, Firm survey |
| JEL: | E24 J24 J30 |
| Date: | 2022–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kucebi:2211&r= |
| By: | BUONGIORNO SOTTORIVA Claudio; NASI Greta; BARKER Louisa; CASIANO FLORES Cesar; CHANTILLON Maxim; CLAPS Massimiliano; CROMPVOETS Joep; FRANCZAK Dagmara; STEVENS Richard; VANCAUWENBERGHE Glenn; VANDENBROUCKE Danny |
| Abstract: | This work focuses on the public value generated from location-enabled public services by investigating a set of ten case studies from across the European Union. Our research suggests that (i) the local agenda might refer to the urgency and relevancy of an issue and particular local characteristics that need to be adequately addressed; (ii) past choices and digitalisation efforts are a decisive positive factor whenever they encompass past decisions of service digitalisation and technological capability strengthening; (iii) the assignment of clear responsibilities for innovation and a clear innovation strategy are fostering location-enabled public service adoption. Furthermore, we found that organisations adopting and implementing location-based data and technology produce short-term related outputs that are usually efficiency-driven and produce operational value. Social and political value, on the other hand, are more difficult to measure and difficult to translate into operative measures. Future research should focus on measuring impacts and ways to increase citizens involvement. |
| Keywords: | public value, public services, location, data, technology, innovation |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc130451&r= |
| By: | Star, Miran |
| Abstract: | In this project, we evaluate the firm performance and the board, and what make the board and performance, relations in the stock firms, which is owned by more than owner, and we make our research based on Iraq, and we took the firm performance, of the Iraq firms, which are in, Iraq stock exchange, which we took the 2019, for the measuring the firms, performances, and for the board of director, we make three variables, which each having effect on the board, which were the first the size of the board, the second one is the CEO duality in the board, and the third one is the gender diversity, which is focus on the female ratio, and the board make the decision, which the result be the performance of the firm, which the board decision make impact on the performance, in a way which if the performance, doesn’t go well, the board will responsible for it. For that we try to find the relation between the effective factor of the board, and their effect on the performance. |
| Keywords: | board size, CEO duality, female member, firm performance |
| JEL: | G34 M41 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114396&r= |
| By: | Marco Di Cataldo (Department of Economics, University Of Venice CÃ Foscari; Department of Geography and Environment, London School of Economics); Licia Ferranna (Department of Economics, University Of Venice CÃ Foscari); Margherita Gerolimetto (Department of Economics, University Of Venice CÃ Foscari); Stefano Magrini (Department of Economics, University Of Venice CÃ Foscari) |
| Abstract: | This paper analyses institutional changes in local governance structures as determinants of wage premia and innovation capacity of urban areas. By combining individual and metropolitan area data for the US, we study the role of institutional fragmentation related to the number of local governments operating in an area, and institutional coordination, stemming from the creation of authorities fostering the collaboration of local governments. Our findings suggest that more fragmented institutional landmarks do not benefit the wage competitiveness and innovativeness of urban areas. If anything, they harm them. Conversely, stronger coordination among local governments boosts the productivity of functional regions by increasing their wage premia and improving their capacity to innovate. Coordination agreements between different counties or municipalities are especially relevant in the case of urban areas modifying their functional borders over time. These findings provide key insights into the economic effects of reforming the governance structure of metropolitan areas. |
| Keywords: | local governance, US MSAs, fragmentation, coordination, wage premium, innovation |
| JEL: | H70 R12 R23 J3 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2022:11&r= |