|
on Entrepreneurship |
| By: | Caliendo, Marco (IZA); Kritikos, Alexander S. (DIW Berlin) |
| Abstract: | When unemployed persons go into business, they often are characterized as necessity entrepreneurs, because push factors, namely their unemployment, likely prompted their decision. In contrast to this, business founders who have been previously employed represent opportunity entrepreneurs because pull factors provide the rationale for their decision. However, a data set of nearly 1,900 business start-ups by unemployed persons reveals that both kind of motivation can be observed among these start-ups. Moreover, a new type of entrepreneur emerges, motivated by both push and pull variables simultaneously. An analysis of the development of the businesses reflecting three different motivational types indicates a strong relationship between motives, survival rates and entrepreneurial development. We find in particular that start-ups out of opportunity and necessity have higher survival rates than do start-ups out of necessity, even if both types face the same duration of previous unemployment. |
| Keywords: | entrepreneurship, push and pull motives, survival and failure, job creation |
| JEL: | D81 J23 M13 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4661&r=ent |
| By: | Harhoff, Dietmar (Ludwig-Maximilians-Universität Munich) |
| Abstract: | Financing constraints have been discussed as a major obstacle to innovation. Small and medium-sized enterprises and start-ups are particularly concerned by such impediments. Venture capital has emerged as a partial solution in some countries, but is only available for start-up firms with major growth potential. Recently, new intermediaries have attempted to provide external finance to innovative firms based on the firms’ patent portfolios. Patents have been used as collateral or as assets assembled in patent funds seeking to commercialize the patent rights. Patent auctions are indicative of a nascent market for patented technology. This paper presents an overview on the role of patents and licenses, both in the classical sense and as instruments for financing innovation. It also discusses implications of these developments for public policy and the design of patent systems. |
| Keywords: | entrepreneurship; intellectual property; equity; innovation; finance; venture capital; R&D; financing constraints; funding gaps |
| JEL: | G24 G32 L20 L26 O30 O32 O34 O38 |
| Date: | 2009–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:ris:eibpap:2009_011&r=ent |
| By: | Bottazzi, Laura (Bologna University, Italy) |
| Abstract: | Venture capital is considered to be the most appropriate form of financing for innovative firms in high-tech sectors. We provide an assessment of venture capital with some of Europe’s most innovative and successful companies: those listed on Europe’s “new” stock markets. Venture capital is effective in helping these firms overcome credit constraints but has a limited effect on their ability to grow and create jobs. This result clashed with the evidence on the role of VC for US companies. Yet, VC is not only about money but also about steering and supporting portfolio companies, activities which depend on venture capitalists’ educational and organizational background as well as on the legal and cultural environment in which they operate. |
| Keywords: | Venture capital; innovative firm; financing constraint; start-up; IPO; investor activism; legal system |
| JEL: | G24 G32 |
| Date: | 2009–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:ris:eibpap:2009_009&r=ent |
| By: | Hall, Bronwyn H. (University of California-Berkeley) |
| Abstract: | To what extent are new and/or innovative firms fundamentally different from established firms, and therefore require a different form of financing? The theoretical background for this proposition is presented, and the empirical evidence on its importance is reviewed. Owing to the intangible nature of their investment, asymmetric-information and moral-hazard, these firms are more likely to be financed by equity than debt and behave in some cases as though they are cash-constrained, especially if they are small. Recognising the role for public policy in this area, many countries have implemented specific policies to bring the cost of financing innovation more in line with the level that would prevail in the absence of market failures. |
| Keywords: | R&D; innovation; financing; liquidity constraints; venture capital |
| JEL: | G24 G32 O32 O38 |
| Date: | 2009–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:ris:eibpap:2009_008&r=ent |
| By: | Tamvada, Jagannadha Pawan |
| Abstract: | We examine the spatio-temporal dynamics of self-employment in India using geoadditive models and pseudo panel techniques. We test the claim of Iyigun and Owen (1999) that individuals invest in professional human capital and not in entrepreneurial human capital as an economy develops. The results suggest that in non-agriculture, higher education decreases the likelihood of individuals choosing self-employment over time; however, it has an opposite effect in agriculture. While increases in land possessed increase the likelihood of self-employment choice in agriculture, individuals with small land holdings are more likely to transition into self-employment in non-agriculture. Belonging to a backward class has a negative effect on self-employment choice in both sectors; however, the effect has increased in non-agriculture and remained stable in agriculture. The geoadditive models suggest that the propensity to be self-employed has decreased across most spatial units, although there are few pockets where self-employment is rising again. |
| Keywords: | Entrepreneurship; Self-employment; Developing Countries; Dynamics; Pseudo Panels |
| JEL: | J24 L26 J23 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:20042&r=ent |
| By: | Okan Eren |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:0907&r=ent |
| By: | Ken-Ichi Shimomura; Jacques-François Thisse (CREA, University of Luxembourg) |
| Abstract: | Armchair evidence shows that many industries are made of a few big commercial or manufacturing firms, which are able to affect the market outcome, and of a myriad of small family-run businesses with very few employees, each of which has a negligible impact on the market. Examples can be found in apparel, catering, publishers and bookstores, retailing, finance and insurances, and IT industries. We provide a new general equilibrium framework that encapsulates both market structures. Due to the higher toughness of the market, the entry of big firms leads them to sell more through a market expansion eect, which is generated by the exit of small firms. Furthermore, the level of social welfare increases with the number of oligopolistic firms because the procompetitive effect associated with the entry of a big rm dominates the resulting decrease in product variety. |
| JEL: | L13 L40 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:09-18&r=ent |
| By: | Totzek, Alexander |
| Abstract: | As GDP is highly correlated with both entering and exiting firms, we develop a totally microfounded DSGE model with endogenous firms entry as well as exit decisions. We show that the simplifying assumption of a constant firms' death rate made by the recent literature on DSGE modelling can lead to counterfactual implications of the resulting dynamics. We further demonstrate that the feature of endogenous exits significantly improves the performance of the resulting model when comparing the generated second moments with those of existing models assuming exogenous exits and with the data. Moreover, we estimate the resulting Phillips curve which turns out to be also a function of the change in the mass of producers using the generalized method of moments. -- |
| Keywords: | Heterogeneity,Producer entry and exit,Business cycles,GMM |
| JEL: | E32 E31 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cauewp:200911&r=ent |
| By: | Benito Arruñada |
| Abstract: | Registering originative business contracts allows entrepreneurs and creditors to choose, and courts to enforce market-friendly “contract” rules that protect innocent third parties when adjudicating disputes on subsequent contracts. This reduces information asymmetry for third parties, which enhances impersonal trade. It does so without seriously weakening property rights, because it is rightholders who choose or activate the legal rules and can, therefore, minimize the cost of any possible weakening. Registries are essential not only to make the chosen rules public but to ensure rightholders’ commitment and avoid rule-gaming, because independent registries make rightholders’ choices verifiable by courts. The theory is supported by comparative and historical analyses. |
| Keywords: | property rights, theory of the firm, business registries, formalization, starting a business, impersonal transactions. |
| JEL: | O17 K22 K23 L59 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1195&r=ent |
| By: | Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto); José Miguel Silva (MIETE, Faculdade de Engenharia, Universidade do Porto) |
| Abstract: | A literature survey covers the state-of-the-art of a certain investigation field and is a critical evaluation that can help define new research and facilitate the understanding of the area by new researchers of that scientific field. Although there are already some excellent attempts to provide a survey in the Economics and Management of Innovation area, these are in general qualitative. Using bibliometric tools, which help to explore, organize and analyze large amounts of information, we characterize, in a quantitative way, the published literature in innovation area. Based on the 1047 abstracts of the articles published between 1974 and 2007 in the innovation area’s ‘seed journal’ we observed that the themes that have grown the most in recent years were “Open innovation, Copyrights, Intellectual Property Rights, Open Software”, “University-Industry Relations and Transfer of Technology and Knowledge”, and “Entrepreneurship, Incubation, Spin-offs and Entrepreneurial Universities”. In contrast, themes such as “Learning and Experimentation, Troubleshooting”, “Development of new Products, Processes, Markets, Organizational”, “Cooperation in R&D+I”, “Multinational/International trade in the process of innovation”, and “Management Policy of Science and Technology “, noted a marked decline. |
| Keywords: | Survey; Innovation; Bibliometrics |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:355&r=ent |