nep-ent New Economics Papers
on Entrepreneurship
Issue of 2013‒03‒30
four papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. The properties of local knowledge bases and entrepreneurship: Evidence from Italian NUTS 3 regions By Alessandra Colombelli; Francesco Quatraro
  2. Competition, R&D and Innovation: Testing the Inverted-U in a Simultaneous System By Michael Peneder; Martin Wörter
  3. Business Demography in Poland: Microeconomic and Macroeconomic Determinants of Firm Survival By Natalia Nehrebecka; Aneta Maria Dzik
  4. Entrepreneurship - Methodische Herausforderungen einer jungen Forschungsdisziplin By Schuster, Charlotte Leonie

  1. By: Alessandra Colombelli; Francesco Quatraro
    Abstract: This paper investigates the relationship between the creation of new firms and the properties of the local knowledge bases, like coherence, cognitive distance and variety. By combining the literature on the knowledge spillovers of entrepreneurship and that on the recombinant knowledge approach, we posit that locally available knowledge matters to the entrepreneurial process, but the type of knowledge underlying theses dynamics deserve to be analyzed. The analysis is carried out on 104 Italian NUTS 3 regions observed over the time span 1995-2011. The results confirm that local knowledge is important, and suggest that the creation of new firms in Italy is associated to the exploitation of well established technological trajectories grounded on competences accumulated over time, rather than to the commercialization of brand new knowledge.
    Keywords: Knowledge Coherence, Variety, Cognitive Distance, Italy, Knowledge-Spillovers Theory of Entrepreneurship, New Firms, Recombinant Knowledge
    JEL: L26 M13 R11 O33
    Date: 2013–03
  2. By: Michael Peneder (WIFO); Martin Wörter
    Abstract: To address the relationship between innovation and competition we jointly estimate the opportunity, production, and impact functions of innovation in a simultaneous system. Based on Swiss micro-data, we apply a 3-SLS system estimation. The findings confirm a robust inverted-U relationship, in which a rise in the number of competitors at low levels of initial competition increases the firm's research effort, but at a diminishing rate, and the research effort ultimately decreases at high levels of competition. When we split the sample by firm types, the inverted-U shape is steeper for creative firms than for adaptive ones. The numerical solution indicates three particular configurations of interest: 1. an uncontested monopoly with low innovation, 2. low competition with high innovation, and 3. a "no innovation trap" at very high levels of competition. The distinction between solution 1. and 2. corresponds to Arrow's positive effect of competition on innovation, whereas the difference between outcomes 2. and 3. captures Schumpeter's positive effect of market power on innovation. Simulating changes of the exogenous variables, technology potential, demand growth, firm size and exports have a positive impact on innovation, while foreign ownership has a negative effect, and higher appropriability has a positive impact on the number of competitors.
    Date: 2013–03–22
  3. By: Natalia Nehrebecka; Aneta Maria Dzik (Faculty of Economic Sciences, University of Warsaw)
    Abstract: The paper presents a model assigning a bankruptcy probability to a company, developed on the basis of individual data from balance sheets and income statements of Polish companies, collected by Central Statistical Office of Poland in the 2001 – 2010 period. Determinants for warning signals for bankruptcies were examined together with the possibilities of early identification of such signals. The research was based on a logistic regression performed on categorized variables transformed using a weight of evidence approach. Scoring methods were used to create an indicator for grading the companies in the case of bankruptcies. In the forecasting model of a possible bankruptcy in a year's horizon the highest weight was assigned to the indicator for the ability to cover financial costs which explained the company's ability to meet the interest payments and capital costs. Indebtedness, share of cash reserves in assets and sales’ revenues were considered in forecasting bankruptcies information regarding liquidity. Taking into account the direction of sales, the specialized exporters were least probable to go bankrupt. In the more generalized model which accounts for the macroeconomic situation the most important was the indicator for the ability to pay off debt. In the model forecasting bankruptcies three-years in advance - the early warning model - no dominant indicator was found. Weights of 20% were assigned to the indicators of liquidity, current assets turnover and the return on sales.
    Keywords: firm survival, micro-data, Polish companies, scoring methods
    JEL: L11 L25 G33 M13
    Date: 2013
  4. By: Schuster, Charlotte Leonie
    Abstract: Even if today's successful companies operating in the market were start-ups at some time, so far, no consensus could be found, if entrepreneurship is to be understood as an independent research discipline. Should entrepreneurship have its own theory based on generally accepted assumptions and constructs or should the field of research rather convince with an integrated perception and interfaces to many related disciplines? The terminological and conceptual difficulties come along with methodological challenges. In addition, data bases in entrepreneurship are often small and difficult to access and therefore restrict the choice of analytical methods. Which methodological problems must be addressed and what opportunities and prospects arise for empirical entrepreneurship research? Based on a literature review and an outline of the state of research, it will be discussed whether entrepreneurship could be established as an independent research discipline. Moreover, the use of data analysis methods to study entrepreneurship are surveyed to stress occuring problems and draw implications for the future of entrepreneurship research, as well as for the practice.
    Keywords: Entrepreneurship, Entrepreneurs, Entrepreneurship Orientation, Research methods, Research discipline, data analytic trends, research design, methodological issues, methodological challenges, theory building, cross-disciplinary review
    JEL: L1 L2 M1 M2 O1 O3
    Date: 2013–01

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