nep-ent New Economics Papers
on Entrepreneurship
Issue of 2006‒01‒29
twelve papers chosen by
Marcus Dejardin
Facultés Universitaires Notre-Dame de la Paix

  1. The Organization of the Innovation Industry: Entrepreneurs, Venture Capitalists and Oligopolists By Norbäck, Pehr-Johan; Persson, Lars
  2. Why Are All New Entrepreneurs Better Than Average? Evidence from Subjective Failure Rate Expectations By Ari Hyytinen; Mika Pajarinen
  3. Analyzing Entrepreneurship with the Finnish Linked Employer-Employee Data (FLEED).Matching and qualitative properties of the data By Mika Maliranta; Satu Nurmi
  4. Do Foreign Players Change the Nature of the Game Among Local Entrepreneurs? By Mika Maliranta; Satu Nurmi
  5. Is the Cost of Debt Capital Higher for Younger Firms? By Ari Hyytinen; Mika Pajarinen
  6. The Circulation of Ideas: Firms Versus Markets By Hellmann, Thomas F; Perotti, Enrico C
  7. Social Capital, Creative Destruction and Economic Development By Bezemer, Dirk; Dulleck, Uwe; Frijters, Paul
  8. Mandatory Auditor Choice and Small Finance: Evidence from Finland By Ari Hyytinen; Lotta Väänänen
  9. Opacity of Young Firms: Faith or Fact? By Ari Hyytinen; Mika Pajarinen
  10. Understanding the microenterprise sector to design a tailor-made microfinance policy for Cape Verde By José A. G. Baptista; Jacinto Vidigal da Silva; Joaquim J.S. Ramalho
  11. Yrittäjäksi ryhtyminen ja yrittäjyysasenteet Suomessa: Havaintoja kyselytutkimuksesta By Ari Hyytinen; Mika Pajarinen
  12. Yrittäjien ansiot, työajat ja työkuormitus: Selvitys ekonomien ja insinöörien yrittäjyydestä By Antti Kauhanen

  1. By: Norbäck, Pehr-Johan; Persson, Lars
    Abstract: Exit of venture-backed firms often takes place through sales to large incumbent firms. We show that in such an environment, venture-backed firms have a stronger incentive to develop basic innovations into commercialized innovations than incumbent firms, due to strategic product market effects. This will increase the price for basic innovations, thereby triggering more such innovations by entrepreneurs. Consequently, a venture capital market implies that more innovations are created, and that these become better developed. Moreover, we show that to exist in equilibrium, venture capitalist must be substantially more efficient, otherwise incumbents will preempt venture capitalists entering the market by acquiring basic innovations
    Keywords: acquisitions; entrepreneurship; innovation; venture capital
    JEL: G24 L1 L2 M13 O3
    Date: 2006–01
  2. By: Ari Hyytinen; Mika Pajarinen
    Keywords: entrepreneurship, new firms, default, expectations, survival
    JEL: D81 D84 D21
    Date: 2005–06–29
  3. By: Mika Maliranta; Satu Nurmi
    JEL: L10 M13
    Date: 2004–08–09
  4. By: Mika Maliranta; Satu Nurmi
    Keywords: foreign ownership, entrepreneurship, local labour markets, competition, survival, company effeciency, selection effect, absortive capacity
    Date: 2004–10–28
  5. By: Ari Hyytinen; Mika Pajarinen
    Keywords: small business finance, cost of debt capital, firm age
    JEL: G14 G31 G32
    Date: 2004–11–11
  6. By: Hellmann, Thomas F; Perotti, Enrico C
    Abstract: We describe new ideas as incomplete concepts for which the innovator needs feedback from agents with complementary skills. Once shared, ideas may be stolen. We compare how different contractual environments support invention and implementation. Markets, as open exchange systems, are good for circulation and thus elaboration, but may fail to reward idea generation. Firms, as controlled idea exchange systems, can reward idea generation but can do so only by restricting their circulation. This identifies a basic trade-off between protecting the rights of invention and the best implementation of ideas. An environment that allows ideas to cross firm boundaries enhances the rate of innovation and creates a symbiotic relationship between markets and firms.
    Keywords: firms; ideas; innovation
    JEL: D83 L22 M13 O31
    Date: 2006–01
  7. By: Bezemer, Dirk; Dulleck, Uwe; Frijters, Paul (Groningen University)
    Abstract: This paper develops a conceptual framework for the role of social capital in the political economy of innovation, growth and reform, with illustrations from developing and transition countries. It identifies separate but related roles for the individual and communal interpretations of social capital. It argues that economic growth via innovation requires the creative destruction of individual social capital linkages and discusses the roles of communal social capital and formal market institutions in the process. A negative externality associated with creative destruction implies the possibility of growth accelerations as well as growth traps.
    Date: 2005
  8. By: Ari Hyytinen; Lotta Väänänen
    Keywords: auditing, small business finance, cost of debt capital, regression discontinuity
    JEL: G14 G31 G32
    Date: 2004–11–23
  9. By: Ari Hyytinen; Mika Pajarinen
    JEL: G14 G31 G32
    Date: 2004–08–06
  10. By: José A. G. Baptista (Banco de Cabo Verde); Jacinto Vidigal da Silva (Department of Mangment, University of Évora); Joaquim J.S. Ramalho (Department of Economics, University of Évora)
    Abstract: Two of the central challenges faced by Cape Verde at the present are the high level of unemployment and the increasing proportion of the population that lives below the poverty line. Microenterprise development can be an effective means of addressing both problems in a developing country like Cape Verde, where microenterprises account for about 50% of employment. In this paper we provide a detailed profile of micro firms’ owners and investigate the relationship between their characteristics and the resort to outside seed capital. We find a cluster of factors - the microentrepreneur’s age, gender, level of education and reason for being self-employed - which influence significantly the probability of being in need for external startup capital. The policy implications of these findings for the design of a specific microfinance program for Cape Verde are discussed.
    Keywords: Cape Verde; Microfinance; Microenterprise; Microcredit; Poverty
    JEL: O18 G32
    Date: 2006
  11. By: Ari Hyytinen; Mika Pajarinen
    Keywords: entrepreneurship, entrepreneurial attitudes, start-ups
    Date: 2005–08–11
  12. By: Antti Kauhanen
    Keywords: entrepreneurship, incomes, working hours, workload
    Date: 2004–12–10

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