nep-ent New Economics Papers
on Entrepreneurship
Issue of 2005‒05‒29
seven papers chosen by
Marcus Dejardin
Facultés Universitaires Notre-Dame de la Paix

  1. Start-ups, firm growth and the consolidation of the French biotech industry By Avenel, E.; Corolleur, F.; Gauthier, C.; Rieu, C.
  2. "Der Noth gehorchend, nicht dem eignen Trieb" - Nascent Necessity and Opportunity Entrepreneurs in Germany: Evidence from the Regional Entrepreneurship Monitor (REM) By Joachim Wagner
  3. Das Enable-Programm im Kontext der Europäischen Politik für Unternehmerische Initiative By Heike Grimm; David B. Audretsch
  4. Scientific and Technological Regimes in Nanotechnology: Combinatorial Inventors and Performance By Andrea Bonaccorsi; Grid Thoma
  5. Conditions in Which Microfinance has Emerged in Certain Regions and Consequent Policy Implications By Sriram M S; Kumar Radha
  6. Free entrance and social welfare. Explaining the causes of excessive entry bias. By Francisco Galera; Pedro Gracia-del-Barrio
  7. When and how to create a job: The survival of new jobs in Austrian firms By René Böheim; Alfred Stiglbauer; Rudolf Winter-Ebmer

  1. By: Avenel, E.; Corolleur, F.; Gauthier, C.; Rieu, C.
    Abstract: Based on an original dataset, we analyze empirically the determinants of firm growth in the French biotech industry during two periods, 1996-1999 and 1999-2002. We have two main results. First, Gibrat's law is violated. The growth of annual turnover is influenced by teh initial size of the firm. The effect is non-linear, negative for small firms. Second, location has a significant impact on growth. We use different sets of dummies to characterize location and different measures of firm growth. As a whole, our results point at Marseilles (and its region) and Nanterre (but not Paris and Evry) as favorable places for the growth of firms between 1999 and 2002. For the 1996-1999, the favorable places are Strasbourg (and Alsace) and Rhône-Alpes (Lyon/Grenoble). Our analysis thus suggests that the changes in the (notably legal) environment of French biotech firms that took place in 1999 had a drastic effect of the comparative advantages of locations for biotech firms.
    JEL: L25 L65 R30
    Date: 2005
  2. By: Joachim Wagner (University of Lueneburg and IZA Bonn)
    Abstract: Using a large recent representative sample of the adult German population this paper demonstrates that nascent necessity and nascent opportunity entrepreneurs are different with respect to some of the characteristics and attitudes considered to be important for becoming a nascent entrepreneur, and that they behave differently. Given the lack of longitudinal data, however, we have no information about the performance of entrepreneurs from both groups in the longer run.
    Keywords: necessity entrepreneurship, opportunity entrepreneurship, Germany, REM
    JEL: J23
    Date: 2005–05
  3. By: Heike Grimm; David B. Audretsch
  4. By: Andrea Bonaccorsi; Grid Thoma
    Abstract: Academics and policy makers are questioning about the relation between science and technology in the emerging field of nano science and technology (NST) and the effectiveness of different institutional regimes. We analyze the performance of inventors in the NST using multiple indicators. We clustered patents in three groups according to the scientific curricula of the inventors. The first two groups are composed by patents whose inventors respectively are all authors of at least one scientific publication in the NST and none of then has obtained a scientific publication in that field. Thirdly, we isolated those patents that have at least one inventor, who is also author of at least one scientific publication in the NST. The underlining presumption of this classification is that of a proxy of different institutional search regimes of the inventive activity; pure academic research, pure industrial R&D, and academic-industrial research partnerships.
    Keywords: Science-Technology Relation, Emerging Field, Nanotechnology, Patent Quality, Inventive Productivity.
  5. By: Sriram M S; Kumar Radha
    Abstract: The paper looks at some macro data on the availability of infrastructure, economic growth, density of population and the availability of formal financial services to examine if any of these factors explain the growth of microfinance in certain regions, while the other regions lag behind. For the study, data from the four southern states and three states from the western part of the country have been examined. We find that most of the indicators are not significant enough to explain the regional disparity in the growth of microfinance. However, anecdotal evidence and a perusal of the state policy pronouncements explain that the role of the state could be significant in promoting some of these initiatives. In case of Karnataka, we also find that the banking system seems to have played an additional role in rolling out microfinancial services. The paper concludes by indicating that possibly the sector is still insignificant in the rural economy to establish causality with macro variables. However, there could be possibility of growth in states like Rajasthan where most of the parameters that could foster microfinance seem to exist and with policy intervention on the routing of developmental projects, the movement could get a big boost. We also indicate that the existing network has the potential of unleashing more finance and financial products, and that initiative should be seized forthwith.
    Date: 2005–05–24
  6. By: Francisco Galera (School of Economics and Business Administration, University of Navarra); Pedro Gracia-del-Barrio (School of Economics and Business Administration, University of Navarra)
    Abstract: The economic theory has proved that free entry is not always advantageous from a social welfare point of view. Fro instance, a number of inefficiencies can arise from free entry in the presence of fixed set-up costs. Then, an excessive number of firms can usually be settled in homogeneous produc markets within an imperfect competition framework. The economic forces underlying the entry biases are somewhat obscure yet. This paper claims that capacity constraints and diseconomies of scale ought to be driving the discussion of this issue. The characteristics of the cost function, rather than other features, play the major role and should attract the attention of the future research effort. The paper develops an example with which to illustrate the discussion.
    JEL: D24 D43 L13
    Date: 2005–05
  7. By: René Böheim (Department of Economics, Johannes Kepler University Linz, Austria); Alfred Stiglbauer (Oesterreichische Nationalbank); Rudolf Winter-Ebmer (Department of Economics, Johannes Kepler University Linz, Austria)
    Abstract: While the volatility of job creations has been studied extensively, the survival chances of new jobs are less researched. The question when and how to expand a firm is of importance, both from the firm’s and from a macro perspective. Adjustment cost theories and arguments about option values of investment in firm expansion make predictions about the timing, sequencing and form of firm expansions. When we analyze 21 years of job creation in Austria, we find that the survival of new jobs (and of new firms) depends upon the state of the business cycle at the time of job creation, on the number of jobs created, and on firm age. Jobs in new firms last longer than new jobs in continuing firms.
    Keywords: job creation; business cycle; reallocation; persistence
    JEL: J23 J63 E24 E32
    Date: 2005–05

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