nep-ent New Economics Papers
on Entrepreneurship
Issue of 2013‒03‒09
eight papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. What Do We Learn From Schumpeterian Growth Theory? By Aghion, Philippe; Akcigit, Ufuk; Howitt, Peter
  2. A Darwinian theory of transformation pressure – the stimuli of negative shocks for productivity and renewal in established firms By Erixon, Lennart
  3. Start-up rates, Entrepreneurship Culture and the Business Cycle. Swedish patterns from national and regional data By Andersson, Martin
  4. Individual Creativity, Ex-ante Goals and Financial Incentives By Charness, Gary; Grieco, Daniela
  5. Immigrant Women and Entrepreneurship: A Study of the Health Care Sector in Sweden, 2002-2006 By Korpi, Martin; Hedberg, Charlotta; Pettersson, Katarina
  6. KIBS in Peripheral Regions: Major Outlines By Noronha, Teresa
  7. Public R&D Subsidies, Outside Private Support, and Employment Growth By Link, Albert N.; Scott, John T.
  8. Les effets de l’exportation sur l’innovation et la productivité : Analyse empirique sur un échantillon de PMI By Mohammad Movahedi; Olivier Gaussens

  1. By: Aghion, Philippe (Harvard University, NBER, and CIFAR.); Akcigit, Ufuk (University of Pennsylvania and NBER.); Howitt, Peter (Brown University and NBER.)
    Abstract: Schumpeterian growth theory has “operationalized” Schumpeter’s notion of creative destruction by developing models based on this concept. These models shed light on several aspects of the growth process which could not be properly addressed by alternative theories. In this survey, we focus on four important aspects, namely: (i) the role of competition and market structure; (ii) firm dynamics; (iii) the relationship between growth and development with the notion of appropriate growth institutions; (iv) the emergence and impact of long-term technological waves. In each case Schumpeterian growth theory delivers predictions that distinguish it from other growth models and which can be tested using micro data.
    Keywords: Creative destruction; entry; exit; competition; firm dynamics; reallocation; R&D; industrial policy; technological frontier; Schumpeterian wave; general purpose technology
    JEL: O10 O11 O12 O30 O31 O33 O40 O43 O47
    Date: 2013–02–18
  2. By: Erixon, Lennart (Dept. of Economics, Stockholm University)
    Abstract: The theory of transformation pressure maintains that central actors in established firms will be more productive when experiencing an actual fall in profits. Actors fearing that the survival of the firm is at stake will then become more alert, calculating and creative favoring a transformation. The neo-Schumpeterians follow Schumpeter by largely ignoring the importance of negative driving forces for innovations and the productivity performance of firms. In the neoclassical Schumpeterian literature stronger competition and also lower product demand may induce innovations and productivity increases in established firm. But this literature neglects the underlying psychological mechanism. The ideas in the theory of transformation pressure can easily be incorporated into a Darwinian framework emphasizing basic human drives, the struggle for existence and the adaptation to new external circumstances. The results from tests of the theory of transformation pressure are ambiguous. An experiment confirmed that firms are governed by bounded rationally but only partly that they will upgrade their growth strategy in a profit recession. There are arguments in both industrial economics, psychology and neuroscience for a qualified theory of transformation pressure. Productivity is enhanced by moderate pressure or by periodic shifts between hard pressures and good opportunities.
    Keywords: transformation pressure; bounded rationality; creative destruction; negative driving forces; productivity growth; innovations; neuroscience; stress; economic psychology; universal Darwinism
    JEL: B52 D21 E32 L21 O31
    Date: 2013–01–18
  3. By: Andersson, Martin (CIRCLE Lund University, Blekinge Institute of Technology)
    Abstract: It is often claimed that there are locally embedded values and attitudes towards entrepreneurship, exerting a strong influence on the rate and level of entrepreneurial activity in regions. The concept of regional entrepreneurship culture aims to capture such phenomena, and refers in a general sense to the level of social acceptance and encouragement of entrepreneurs and their activities in a region. This paper discusses regional entrepreneurship culture as a source of persistent differences in regional rates of new firm formation, and presents a number of empirical regularities for Sweden to illustrate the empirical relevance of the main arguments. Using data on rates of new firm formation across Swedish regions over time, the paper further explores the association between start-up activity and the business cycle, as well as how the geographic distribution of start-up rates changes during a major economic crisis.
    Keywords: entrepreneurship; start-ups; geography; culture; business cycles; social capital; persistence
    JEL: L26 O18 R11 R12
    Date: 2013–01–10
  4. By: Charness, Gary; Grieco, Daniela
    Abstract: Creativity is a complex and multi-dimensional phenomenon that has hardly been considered byeconomists, despite a great deal of economic importance. This paper presents a series ofexperiments where subjects face creativity tasks where, in one case, ex-ante goals and constraintsare imposed on their answers, and in the other case no restrictions apply. The effects of financialincentives in stimulating creativity in both types of tasks is then tested, together with the impactof personal features like risk and ambiguity aversion. Our findings show that, in general,financial incentives affect “in-box†(constrained) creativity, but do not facilitate “blue skyâ€(unconstrained) creativity. However, in the latter case incentives do play a role for ambiguityaverseagents, who tend to be significantly less creative and seem to need extrinsic motivation toexert effort in a task whose odds of success they don’t know. We do find that measures ofcreative style, sensation-seeking preferences, and past involvement in artistic endeavors arerelated to our creativity score, but do not find any difference across gender for either form ofcreativity.
    Keywords: Economics, creativity, incentives, ambiguity, constraints, ex-ante goals
    Date: 2013–02–14
  5. By: Korpi, Martin (Institute for Economic and Business History Research, Stockholm School of Economics); Hedberg, Charlotta (Stockholm University Linnaeus Center for Integration Studies - SULCIS); Pettersson, Katarina (Nordic Centre for Spatial Development)
    Abstract: Using unique Swedish longitudinal full-population data and logistic regression, this paper explores whether start-ups of foreign born female heath care workers are structurally (i.e. comparatively higher unemployment and lower wages) or culturally (defined as country of birth) motivated. While structural factors are significantly related to female entrepreneurship regardless of origin, no additional effect is found whether for foreign born more broadly defined, or when adding specific country of birth. Thus, we conclude that structural disadvantage motives, based on gender rather than ethnicity, dominate over possible cultural motives for entrepreneurship.
    Keywords: Immigration; Gender; Entrepreneurship
    JEL: I11 J15 J16 L26
    Date: 2013–02–14
  6. By: Noronha, Teresa (University of Algarve)
    Abstract: Firms, in general, have an absorptive capacity that permits them to recognize the value of new, external information, assimilate it, and apply it to commercial goals. This capacity results from their level of prior related knowledge and they can become creators of innovation in a context of micro and small sized young firms, coming up with innovative outputs. The first goal of this paper is to pursue this discussion in the context of KIBS (Knowledge Intensive Business Services) which are non-material firms, providing intangible and highly personalized services submitted to the general market rules. Also, the geography of KIBS will be emphasized by pointing out the restrictions related to its major role in the peripheral areas of the world. Therefore, this paper presents an analysis of cross country experiences, identifying bottlenecks and common results to demonstrate the major role of KIBS in such environments. The conclusion of the research is twofold: For peripheries, the innovation capacity of KIBS depends on their internal capacity to innovate (as pushing forces), but for KIBS, their main function depends on the readiness of their clients to use their skills to innovate (as pulling forces). This last determinant varies with the readiness of their clients to network and innovate and with their labor force to learn.
    Keywords: KIBS; Business services; Knowledge management; Peripheries
    JEL: L22 L25 O32
    Date: 2013–02–13
  7. By: Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Scott, John T. (Dartmouth College)
    Abstract: In the aftermath of the passage of the American Recovery and Reinvestment Act of 2009, the employment effects of public subsidies have been scrutinized because of new emphasis on public accountability and transparency. In this paper we investigate conditions in which public subsidies of research and development (R&D) in small firms stimulate employment growth. We find, based on an empirical analysis of employment growth induced by U.S. Department of Defense Small Business Innovation Research (SBIR) program awards, that the stimulated employment growth is greater under two conditions: one, the presence of outside investors providing additional funding for the R&D, and two, when an exceptional amount of intellectual property is created by the publicly subsidized R&D. In addition to outside investors, other firms that make commercial agreements with the subsidized firm appear important for the employment growth of the subsidized firm. Cooperation between the small business doing the R&D and other firms is an important determinant of the commercial success of the technologies created with the support of public funds.
    Keywords: Public subsidy of R&D; Intellectual property; Employment growth; Entrepreneurship; Cooperation
    JEL: J21 L26 O31 O38
    Date: 2013–02–22
  8. By: Mohammad Movahedi (Normandie University, UNICAEN - CREM CNRS UMR6211); Olivier Gaussens (Normandie University, UNICAEN - CREM CNRS UMR6211)
    Abstract: Ce papier concerne l’analyse de l’impact de l’exportation sur la productivité et l’innovation dans les entreprises. L’apport de ce travail réside principalement dans 1) la décomposition de l’effet global de l’exportation sur les performances de l’entreprise en un effet d’apprentissage, un effet d’auto-sélection et un effet de spécialisation, 2) la prise en compte simultanée de la persistance de l’exportation et de son intensité. L’objectif de ce papier est d’évaluer l’impact respectif des trois effets de l’exportation sur la performance des entreprises. Ces effets sont testés dans le cadre d’un modèle récursif à partir d’indicateurs synthétiques de l’output et de l’input d’innovation issus de l’analyse des correspondances multiple (ACM). Cette estimation est réalisée a partir des données d’un échantillon représentatif de 90 PMI de la région Basse-Normandie (France) provenant de l’enquête conduite en 2009-10 dans le cadre du projet IDEIS. <br> English abstract: This paper presents an analysis of the impact of exporting on productivity and innovation in SMEs. The contribution of this work lies mainly in 1) the decomposition of the overall effect of the export on the firm performance into a learning effect, a self-selection effect and a specialization effect; and 2) the simultaneous consideration of the both persistence and intensity of export. The primary aim of this paper is to evaluate the respective impact of these three export effects on firm performance. These effects are tested in a recursive model from synthetic indicators of innovation using multiple correspondence analysis (MCA). For this end, we use the data from a representative random sample formed by 90 SMEs of regional of Normandy (France), obtained from the survey conducted in the IDEIS project.
    Keywords: Apprentissage, Auto-sélection, Spécialisation, Processus d’innovation / Learning, Self-selection, Specialization, innovation process
    JEL: C14 C35 D22 F12 O31
    Date: 2013–01

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