nep-ent New Economics Papers
on Entrepreneurship
Issue of 2012‒01‒03
twenty-six papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Risk, Balanced Skills and Entrepreneurship By Hsieh, Chihmao; Parker, Simon C.; van Praag, Mirjam
  2. Entrepreneurial Overconfidence, Self-Financing and Capital Market Efficiency By Michele Dell'Era; Luis Santos-Pinto
  3. Passive and Active Learning from Entrepreneurship - An Empirical Study of Re-Entry and Survival By Kristian Nielsen; Saras D. Sarasvathy
  4. Unraveling the Shift to the Entrepreneurial Economy By Roy Thurik; David Audretsch; Erik Stam
  5. A conceptual overview of What We Know About Social Entrepreneurship By Roy Thurik; Brigitte Hoogendoorn; Enrico Pennings
  6. Opening the black box of Entrepreneurship: the Italian case in a historical perspective By Pier Angelo Toninelli; Michelangelo Vasta
  7. Funding Self-Employment: The Role of Consumer Credit By Christoph Kneiding; Alexander S. Kritikos
  8. Credit Constraints and Productive Entrepreneurship in Africa By Baliamoune-Lutz, Mina; Brixiova, Zuzana; Ndikumana, Leonce
  9. Entrepreneurial exit, ability and engagement across countries in different stages of development By Jolanda Hessels; Peter van der Zwan
  10. Innovation and Entrepreneurship: A Model Based on Entrepreneur Development By Lorenzo Vicens; Sergio Grullón
  11. Self-Employment and Geographical Mobility in Germany By Darja Reuschke
  12. Innovation barriers for small biotech, ICT and clean tech firms:Coping with knowledge leakage and legitimacy deficits By Erik Stam; Neil Thompson; Andrea Herrmann; Marko Hekkert
  13. Mind Europe's early-stage equity gap By Reinhilde Veugelers
  14. Male vs. female business owners: Are there differences in investment behavior? By Pelger, Ines
  15. Gender, Investment Financing and Credit Constraints By Pelger, Ines
  16. Impact of SME policies on innovation capabilities: The Turkish case By Elif Bascavusoglu-Moreau; Mustafa Colakoglu
  17. Innovation Policy and Employment: Evidence from an Impact Evaluation in Argentina By Victoria Castillo; Alessandro Maffioli; Sofía Rojo; Rodolfo Stucchi
  18. Credit-constrained in risky activities? The determinants of capital stocks of micro and small firms in Western Africa By Michael Grimm; Simon Lange; Jann Lay
  19. Beyond Size: Predicting engagement in environmental management practices of Dutch SMEs By Gerrit de Wit; Lorraine Uhlaner; Marta Berent; Ronald Jeurissen
  20. Does Founders’ Human Capital Matter for Innovation? Evidence from Japanese Start-ups By Kato, Masatoshi; Okamuro, Hiroyuki; Honjo, Yuji
  21. The Effect of Relative Standing on Considerations About Self-Employment By Schneck, Stefan
  22. ON THE ROLE OF PROCESS INNOVATIONS ON SMES PRODUCTIVITY GROWTH? By Juan A. Mañez; María E. Rochina-Barrachina; Amparo Sanchis; Juan A. Sanchis
  23. The determinants of YIc's R&D activity By José García-Quevedo; Gabriele Pellegrino; Marco Vivarelli
  24. A Policy Theory Evaluation of the Dutch SME and Entrepreneurship Policy Program between 1982 and 2003 By Hans Kuiper
  25. The determinants of eco innovation in green supply chains: evidence form an Italian sectoral study By Marco Frey; Fabio Iraldo; Francesco Testa
  26. Evaluation of Venture Policy: Impact of the venture fund program for risk financing (Japanese) By ISHII Yoshi(aki)

  1. By: Hsieh, Chihmao (University of Amsterdam); Parker, Simon C. (University of Western Ontario); van Praag, Mirjam (University of Amsterdam)
    Abstract: This paper proposes that risk aversion encourages individuals to invest in balanced skill profiles, making them more likely to become entrepreneurs. By not having taken this possible linkage into account, previous research has underestimated the impacts both of risk aversion and balanced skills on the likelihood individuals choose entrepreneurship. Data on Dutch university graduates provides evidence which supports this contention. It thereby raises the possibility that even risk-averse people might be suited to entrepreneurship; and it may also help explain why prior research has generated mixed evidence about the effects of risk aversion on selection into entrepreneurship.
    Keywords: entrepreneurship, jack-of-all-trades, risk, human capital, occupational choice
    JEL: D81 J24 L26 M13
    Date: 2011–12
  2. By: Michele Dell'Era; Luis Santos-Pinto
    Abstract: This paper studies the impact of entrepreneurial overconfidence on self-financing and capital-market efficiency. We generalize Rochet and Freixas (2008) model of competitive capital markets with adverse selection by assuming some entrepreneurs are overconfident and others underconfident. We show that the existence of biased entrepreneurs lowers the equilibrium fraction of projects' self-financing. We find that entrepreneurial overconfidence reduces capital-market effciency when (i) no entrepreneur is underconfident or (ii) risk aversion is low and the ratio of overconfident to underconfident entrepreneurs is high. However, overconfidence improves capital-market efficiency when risk aversion is high and the ratio of overconfident to underconfident entrepreneurs is moderate.
    Keywords: signaling; overconfidence; market efficiency; self-finance
    JEL: D82 G11 G14 G32
    Date: 2011–10
  3. By: Kristian Nielsen; Saras D. Sarasvathy
    Abstract: The purpose of this study is to contribute to the movement in entrepreneurship research from explanations of performance based exclusively on traits or luck to those based on skills and learning. Both conventional wisdom and extant research in this regard argue for the importance of persistence after failure and learning from failure. Our study of 1,789 entrepreneurs who re-entered entrepreneurship after a failed venture supports both persistence and learning, but with a twist. Persistence paid off for entrepreneurs who already had certain kinds of human and social capital, even when controlling for unemployment record and opportunity costs. Yet the individuals with those human capital and social capital characteristics were not as likely to become re-starters. A Type I error, therefore, appears to hinder the development of habitual entrepreneurship.
    Date: 2011
  4. By: Roy Thurik; David Audretsch; Erik Stam
    Abstract: A major shift in the organization of developed economies has been taking place: away from what has been characterized as the managed economy towards the entrepreneurial economy, or what Kirchhoff (1994) has called dynamic capitalism. In particular, the empirical evidence provides consistent support that (1) the role of entrepreneurship has significantly increased, and (2) a positive relationship exists between entrepreneurial activity and economic performance. However, the factors underlying this observed shift have not been identified in a systematic manner. The purpose of this paper is to suggest some of the factors leading to this shift and implications for public policy. In particular, we find that technological change is a fundamental catalyst underlying the shift from the managed to the entrepreneurial economy. However, it was not just technological change but rather involved a multitude of factors, ranging from the demise of the communist system, increased globalization, new competition for multinational firms and higher levels of prosperity. Recognition of the causes of the shift from the managed to the entrepreneurial economy implies a shift in public policy directions. Rather than to focus of directly and exclusively on promoting new firms and small firms, it may be that the current approach to entrepreneurship policy is misguided. The priority should not be on entrepreneurship policy but rather a more pervasive and encompassing approach, policy consistent with an entrepreneurial economy.
    Date: 2011–12–22
  5. By: Roy Thurik; Brigitte Hoogendoorn; Enrico Pennings
    Abstract: This contribution aims to answer the question what we know about social entrepreneurship by summarizing the current state of knowledge. It first provides a broad description of what social entrepreneurship is. Next, a conceptual overview is given of different perspectives on social entrepreneurship. More specifically, four schools of thought on social entrepreneurship are presented and a description is given of the defining characteristics that distinguish these schools from one another. Subsequently some of the main findings of empirical studies from each of the four schools are summarized and discussed.  
    Date: 2011–12–22
  6. By: Pier Angelo Toninelli; Michelangelo Vasta
    Abstract: The main objective of this paper is to shed light on the Italian entrepreneurship between the beginning of the Second industrial revolution and the end of the XX century. It is based on a new dataset concerning the profiles of 386 entrepreneurs. The results are twofold: first, by proposing an empirical based-taxonomy of Italian entrepreneurs not exclusively based on intuitions and qualitative judgments, we provide valuable interpretative elements; second, we put forward some hypothesis about the relationship between entrepreneurship and Italian economic growth. In particular we perform a Cluster Analysis which singles out five different entrepreneurial typologies characterized by a widespread tendency to searching for new markets, yet a scarce attitude towards innovation. Further we suggest that the evolution of the institutional context slowed down the development of the entrepreneurial abilities and virtues necessary to grow.
    Keywords: History of Entrepreneurship; Italian capitalism
    JEL: N83 N84 L26
    Date: 2011–12
  7. By: Christoph Kneiding; Alexander S. Kritikos
    Abstract: This paper investigates whether self-employed households use consumer loans - in<br /> particular instalment loans and overdrafts - to finance business activities. Controlling<br /> for financial and non-financial household variables we show that self-employed<br /> households particularly use personal overdrafts significantly more often than<br /> employee households. When analyzing the correlation between consumer loan takeups<br /> and consumption of self-employed in comparison to employee households, we<br /> find first evidence that overdrafts are used by self-employed to finance their business<br /> as well. This indicates that intermingling constitutes a financing strategy when<br /> regular business loans might not be accessible.
    Keywords: Small Business Finance, Consumer Credit, Financial Intermingling
    JEL: G32 D12 D14
    Date: 2011
  8. By: Baliamoune-Lutz, Mina (University of North Florida); Brixiova, Zuzana (United Nations Development Programme (UNDP), Swaziland); Ndikumana, Leonce (University of Massachusetts Amherst)
    Abstract: Limited access of entrepreneurs to credit constrains the creation and growth of private firms. In Africa, access to credit is particularly limited for small and medium enterprises (SMEs) due to unclear property rights and the lack of assets that can be used as collateral. This paper presents a model where firm creation and growth hinge on matching potential entrepreneurs with productive technologies, while firm growth depends on acquired capital. The shortage of collateral creates a binding credit constraint on borrowing by SMEs and hence private sector growth and employment, even though the banking sectors have ample liquidity, as is the case in many African countries. The model is tested using a sample of 20 African countries over the period 2005-09. The empirical results suggest that policies aimed at easing the binding credit constraints (e.g., the depth of credit information and the strength of legal rights pertaining to collateral and bankruptcy) would stimulate productive entrepreneurship and private sector employment in Africa.
    Keywords: credit constraints, productive entrepreneurship, employment, policies
    JEL: G21 L26 D24
    Date: 2011–12
  9. By: Jolanda Hessels; Peter van der Zwan
    Abstract: Entrepreneurial ability has been suggested to be an important predictor of entrepreneurial engagement. In this paper we investigate the extent to which different types of recent entrepreneurial exit experiences foster entrepreneurial ability and subsequent entrepreneurial engagement. We discriminate between several exit modes and distinguish the following engagement levels: potential, intentional, nascent, young and established entrepreneurship. We use individual-level data for 67 countries that participated in the Global Entrepreneurship Monitor during 2007, 2008 and 2009. Our findings indeed show that entrepreneurial exit directly fosters entrepreneurial engagement as well as indirectly through enhanced entrepreneurial ability. We also find dat positive as well as negative exit experiences foster subsequent entrepreneurial engagement. In addition, the impacts of exit on ability and exit on engagement increase with the stage of development of a country.
    Date: 2011–12–22
  10. By: Lorenzo Vicens; Sergio Grullón
    Abstract: This article proposes a person-centered model for entrepreneurship, rather than one based on an idea or business plan. It analyzes the characteristics of entrepreneurship development programs worldwide and presents a representative sample of best practices. On the basis of the main findings and lessons learned, this paper defines the characteristics and components of a new model for entrepreneur development and presents recommendations as to how to deploy the model in Latin America and the Caribbean.
    Keywords: Science & Technology, Economics :: Economic Development & Growth, Private Sector :: Business Development, entrepreneurship, innovation, Latin America and the Caribbean, innovation model, person-centered model for entrepreneurship, best practices
    Date: 2011–11
  11. By: Darja Reuschke
    Abstract: Little is known about the individual location behaviour of self-employed entrepreneurs. This paper investigates the geographical mobility behaviour of self-employed entrepreneurs, as compared to employees, thereby shedding new light onto the place embeddedness of self-employment. It examines whether self-employed entrepreneurs are `rooted¿ in place and also whether those who are more rooted in place are more likely to enter self-employment. The paper draws on large-scale panel data covering the years 1996¿2009 from the German Socio-Economic Panel Study (SOEP). It shows that self-employed entrepreneurs as compared to employees are not more `rooted¿ in their place of residence and that those who are more rooted in their place of residence are not more likely to become self-employed. However, in contrast to expectations drawn from previous literature, flows into self-employment are positively associated with inter-regional moves. It concludes that a longitudinal perspective on individual employment careers provides an important methodological advance. In addition, it emphasises the importance of mobility and immobility and individual and household constraints and preferences for understanding who becomes self-employed.
    Keywords: Self-employment, migration, moves, panel data, SOEP, Germany
    JEL: C23 J21 J61 J62 R23
    Date: 2011
  12. By: Erik Stam; Neil Thompson; Andrea Herrmann; Marko Hekkert
    Abstract: Innovative high-tech small and medium sized enterprises (SMEs) are thought to be drivers of economic renewal and growth. However, due to their limited size, SMEs face two fundamental innovation barriers: the risk that other organizations appropriate the returns to the newly created knowledge by SMEs (knowledge leakage), and a lack of understanding and recognition of their business on the part of potential stakeholders (legitimacy deficits). Based on a panel study of 196 SMEs this paper shows that biotech, ICT and clean tech firms choose different strategies to deal with knowledge leakage and legitimacy deficits. To prevent knowledge leakage, high-tech SMEs are very selective in choosing their R&D partners and collaborate with basic rather than applied technology developers. Furthermore, to gain organizational legitimacy, high-tech SMEs pursue activities that focus not only on product development but also on generating awareness and understanding of their technologies.  
    Date: 2011–12–23
  13. By: Reinhilde Veugelers
    Abstract: Remedying the European Unionâ??s deficient overall business research and development performance requires the nurturing of more new companies in new sectors, enabling them to grow to leading-innovator status. This means addressing young leading innovatorsâ?? access to external finance, particularly early-stage venture capital. The funding system for aspiring young leading innovators (â??yolliesâ??) needs to be understood as an interconnected system comprising different types of funding at different stages of company lifecycles. Venture capital funds are critical at the early commercialisation stage. Venture capital investors rely on a good deal flow of high-potential investment-ready firms, on skilled investment managers, and on developed exit markets. Poor returns from early-stage investments in Europe on a smaller deal flow have significantly reduced the appetite for early-stage venture capital. This exodus has left a funding gap in Europe for aspiring yollies. The evidence suggests that there are a number of ineffective public schemes supporting mediocre deals at mediocre funds. Shutting those down would free up enough funding to allow a significant shift towards a more effective venture investing system focused on high quality venture capital and innovative projects from aspiring yollies.
    Date: 2011–12
  14. By: Pelger, Ines
    Abstract: This paper analyzes gender differences in the investment activity of German small and medium sized enterprises (SMEs). The empirical analysis is carried out on a sample of firms drawn from the KfW Mittelstandspanel, a representative survey of German SMEs for the period from 2003 to 2009. We find evidence that female-owned firms are less likely to invest and if they invest, then their average investment rate is lower. These differences cannot entirely be explained by firm or owner characteristics. Furthermore, women’s investment is less sensitive to cash flow, which indicates that it is unlikely that their lower investment is driven by difficulties in acquiring external finance. An analysis of stated investment goals reveals that women have different preferences and attitudes towards investment. They indicate to a lesser extent aspiring and growth-orientated investment goals like sales increase, innovation/R&D or implementation of new products.
    Keywords: Gender Economics; Female Entrepreneurship; Investment
    JEL: G11 J16 L26
    Date: 2011–12
  15. By: Pelger, Ines
    Abstract: This paper provides the first evidence on gender differences in investment financing, credit application and credit denial rates in Germany. The empirical analysis is carried out on a sample of firms drawn from the KfW Mittelstandspanel, a representative survey of German SMEs for the period from 2003 to 2009. Our results suggest that in female-owned firms the share of internal capital in investment financing is higher and the share of external funds is lower than for male-owned firms. An analysis of the supply- and demand-side on the credit market shows that women are not more likely to be denied credit but the probability that they apply for credit is on average lower. Yet, this gender difference in the probability of credit application is only evident when considering firms with negative or neutral sales expectations. There is no significant gender difference in credit application rates of firms with positive sales expectations.
    Keywords: Gender Economics; Female Entrepreneurship; Investment Financing
    JEL: G11 J16 L26
    Date: 2011–12
  16. By: Elif Bascavusoglu-Moreau (Centre for Business Research, Judge Business School, University of Cambridge); Mustafa Colakoglu (TTGV Turkey Technology Development Foundation)
    Abstract: The purpose of this paper is to explore the determinants of innovative capabilities in an emerging country context. We focus more particularly on the impact of recent changes in SME policies in Turkey. Using a unique firm-level survey conducted on 45.000 SMEs, innovative capabilities of firms are assessed at three different levels; their innovation efforts, innovation decision and innovative intensity. We analyze and compare the impact of two different incentive schemes; one a purely financial support, and the second, consultancy and technological assistance coupled with financial facilities. Whereas all firms seem to benefit from financial support, only less innovative firms take full advantage of the advisory services. Overall, the determinants of innovative capabilities depend considerably on the type of firms, suggesting the need for differentiated policy measures.
    Keywords: Small and Medium-Sized Enterprises (SMEs), technological capability building, innovation, SME policies
    Date: 2011–05
  17. By: Victoria Castillo; Alessandro Maffioli; Sofía Rojo; Rodolfo Stucchi
    Abstract: This paper presents the evaluation of the Enterprise Restructuring Support Program in Argentina. The aim of the program was to increase the competitiveness of small and medium-sized enterprises by cofinancing technical assistance that can be classified as either support for process innovation or support for product innovation. Although these types of programs do not primarily aim to create jobs, they are implemented assuming that they do, or at least that they do not destroy jobs. This paper tests this assumption. It compares the impact of each type of support on employment and the type of employment measured by the wages paid by firms to their employees. To control for self-selection into the program, propensity score matching and difference in differences were combined. The study found that by supporting both process and product innovation-related activities, the program was able to create more and better jobs. The effect on wages was also found to be higher when supporting product innovation activities.
    Keywords: Private Sector :: SME, Labor :: Workforce & Employment, Science & Technology :: Research & Development, Science & Technology :: New Technologies, innovation, employment, wages, policy evaluation, SMEs, Argentina
    JEL: D2 J23 L8 O31 O33
    Date: 2011–12
  18. By: Michael Grimm (International Institute of Social Studies, The Hague); Simon Lange (Georg-August-University Göttingen); Jann Lay (GIGA German Institute of Global and Area Studies, Hamburg)
    Abstract: Micro and small enterprises (MSEs) in developing countries are typically considered to be severely credit constrained. Additionally, high business risks may partly explain why capital stocks of MSEs remain low. This article analyzes the determinants of capital stocks of MSEs in poor economies focusing on credit constraints and risk. The analysis is based on a unique, albeit cross-sectional but backward-looking, micro data set on MSEs covering the economic capitals of seven West-African countries. The main result is that capital market imperfections indeed seem to explain an important part of the variation in capital stocks in the early lifetime of MSEs. Furthermore, the analyses show that risk plays a key role for capital accumulation. Risk-averse individuals seem to adjust their initially low capital stocks upwards when enterprises grow older. MSEs in risky activities owned by wealthy individuals even seem to over-invest when they start their business and adjust capital stocks downwards subsequently. As other firms simultaneously suffer from capital shortages, such behaviour may imply large inefficiencies.
    Keywords: Informal sector; micro and small enterprises; credit constraints; risk; risk aversion; firm growth; West-Africa
    JEL: D13 D61 O12
    Date: 2011–12–21
  19. By: Gerrit de Wit; Lorraine Uhlaner; Marta Berent; Ronald Jeurissen
    Abstract: This study focuses on the prediction of the engagement of small and medium sized enterprises (SMEs) in environmental management practices, based on a random sample of 689 SMEs. The study finds that several endogenous factors, including tangibility of sector, firm size, innovative orientation, family influence and perceived financial benefits from energy conservation, predict an SME’s level of engagement in selected environmental management practices. For family influence, this effect is found only in interaction with the number of owners. In addition to empirical research on SMEs’ environmental behavior, the article draws on the ecological modernization literature as well as the theory of planned behavior.
    Date: 2011–12–23
  20. By: Kato, Masatoshi; Okamuro, Hiroyuki; Honjo, Yuji
    Abstract: Using a sample from an original questionnaire survey in Japan, this paper explores whether and how founders’ human capital affects innovation outcomes by start-ups. The results provide evidence that founders with greater human capital are more likely to yield innovation outcome. However, because certain types of founders’ human capital may boost R&D investment, which possibly results in innovation outcomes, we estimate the determinants of innovation outcomes by an instrumental variable probit model taking into account the endogeneity of R&D investment. Our findings suggest that specific human capital for innovation, such as founders’ prior innovation experience, is directly associated with innovation outcomes after start-up, while generic human capital, such as founders’ educational background, indirectly affects innovation outcomes through R&D investment.
    Keywords: Start-up, Founder, Human capital, Innovations, R&D investment
    JEL: L24 M13 O31
    Date: 2011–12
  21. By: Schneck, Stefan
    Abstract: This paper uses unique German data to examine the effects of the relative standing on the individual propensity to become self-employed in the next two years. The results suggest that the relationship between relative wage positions and propensity to become self-employed is U-shaped. This is interpreted as evidence that low status translates into entrepreneurial motivation for workers in low relative wage positions. Employees with high relative standing, in turn, seem to be more concerned about the lack of future career prospects in paid employment and consider self-employment as a next step on the individual career ladder.
    Keywords: Relative wage position, status, self-employment
    JEL: L26 L29
    Date: 2011–12
  22. By: Juan A. Mañez (Universidad de Valencia and ERICES); María E. Rochina-Barrachina (Universidad de Valencia and ERICES); Amparo Sanchis (Universidad de Valencia and ERICES); Juan A. Sanchis (Universidad de Valencia and ERICES)
    Abstract: In this paper we explore in depth the effect of process innovations on total factor productivity growth for small and medium enterprises (SMEs), taking into account the potential endogeneity problem that may be caused by self selection into these activities. First, we analyse whether the ex-ante most productive SMEs are those that start introducing process innovations; then, we test whether process innovations boost SMEs productivity growth using matching techniques to control for the possibility that selection into introducing process innovations may not be a random process. We use a sample of Spanish manufacturing SMEs for the period 1991-2002, drawn from the Encuesta sobre Estrategias Empresariales. Our results show that the introduction of process innovations yields an extra productivity growth, and that the life span of this extra productivity growth lasts for only one period.
    Keywords: Process innovations, TFP, stochastic dominance, matching techniques
    JEL: C14 C21 D24 L1 L25 O3
    Date: 2011–12
  23. By: José García-Quevedo (Barcelona Institute of Economics - University of Barcelona, Barcelona); Gabriele Pellegrino (Barcelona Institute of Economics - University of Barcelona, Barcelona; Università Cattolica del Sacro Cuore, Piacenza and Milano); Marco Vivarelli (Università Cattolica del Sacro Cuore, Piacenza and Milano; IZA, Bonn; SPRU, University of Sussex, Brighton)
    Abstract: This paper examines the determinants of young innovative companies’ (YICs) R&D activities taking into account the autoregressive nature of innovation. Using a large longitudinal dataset comprising Spanish manufacturing firms over the period 1990-2008, we find that previous R&D experience is a fundamental determinant for mature and young firms, albeit to a smaller extent in the case of the YICs, suggesting that their innovation behaviour is less persistent and more erratic. Moreover, our results suggest that firm and market characteristics play a distinct role in boosting the innovation activity of firms of different age. In particular, while market concentration and the degree of product diversification are found to be important in boosting R&D activities in the sub-sample of mature firms only, YICs’ spending on R&D appears to be more sensitive to demand-pull variables, suggesting the presence of credit constraints. These results have been obtained using a recently proposed dynamic type-2 tobit estimator, which accounts for individual effects and efficiently handles the initial conditions problem.
    Keywords: R&D, innovation, Young Innovative Companies (YICs), dynamic type-2 tobit estimator.
    JEL: O31
    Date: 2011–12
  24. By: Hans Kuiper
    Abstract: The present paper reconstructs and analyses the assumptions – i.e. the policy theory – underlying the development of the SME and Entrepreneurship Policy Program in general and the Establishment Act and the Loan Guarantee (BBMKB) in particular between 1982-2003. The analysis links these assumptions to policy output results and policy effects. We find that the foundation of the policy theories of the Establishment Act and the Loan Guarantee requires improvement with respect to implicit assumptions and lacking warrants. We also find that the implied policy effects cohere with formal policy objectives.
    Date: 2011–12–23
  25. By: Marco Frey (Istituto di Management - Scuola Superiore Sant’Anna, Pisa); Fabio Iraldo (Istituto di Management - Scuola Superiore Sant’Anna, Pisa); Francesco Testa (Istituto di Management - Scuola Superiore Sant’Anna, Pisa)
    Abstract: In the last years attention has increased to the eco-innovation topic. Empirical studies have demonstrated that innovating firms grow faster, have higher productivity and are more profitable than their less innovative counterparts (Geroski et al., 1993; Roper and Hewitt-Dundas, 1998). Drawing upon a database of over 300 enterprises operating within eight defined green production chains working in the Province of Milan, this paper assesses the determinants and drawbacks of innovation. In particular, using an econometrical approach, we tested the following propositions: a) small dimension of enterprises is an obstacle to their innovation power; b) The adoption of an international strategy of production and commercialisation is an opportunity and a stimulus to eco-innovation; c) cooperation with research partners can help SMEs to overcome difficulties and help them to develop and offer eco-sustainable products and services. The econometric analysis shows a positive impact of dimension and level of internationalization on innovation capabilities. In addition, cooperation with research centers and access to capital market are positively related with effective innovations.
    Keywords: SME, eco-innovation, supply chain, green economy.
    JEL: M20 Q55
    Date: 2011–03–01
  26. By: ISHII Yoshi(aki)
    Abstract: Venture businesses serve an important role for economic development. Since the 1990s, the Japanese government has been seeking to boost the activities of venture businesses with its policy programs. Nevertheless, Japan has not yet realized an economy in which venture businesses lead the economy, and its venture policy is now at a turning point. To enhance the activities of venture businesses, it is essential to attract venture capitalists and their risk money. Accordingly, the Japanese government established the "Venture Fund Program" in 1999. The program finances private venture funds, providing venture businesses in the early stages with risk money and management support. The program supports 85 funds, and over 2000 venture businesses have received financing. Following 10 years of program implementation, it is high time to evaluate the performance of this policy. Not many evaluation studies on venture policy programs in Japan have been conducted. This research evaluates the program via data analysis and interviews. Our research has found that the program contributes to the growth of venture businesses and fosters the venture capital industry. On the other hand, we also found that those venture funds with multiple purposes other than promoting venture businesses experienced difficulties in terms of implementation. In order to enhance a venture economy, it is important to get an objective policy evaluation from academia.
    Date: 2011–09

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