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on Entrepreneurship |
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Issue of 2013‒10‒11
seven papers chosen by Marcus Dejardin University of Namur and Universite' Catholique de Louvain |
| By: | Acemoglu, Daron (MIT, CEPR and NBER); Akcigit, Ufuk (University of Pennsylvania and NBER); Bloom , Nicholas (Stanford University, NBER and CEPR); Kerr , William (Harvard University, Bank of Finland, and NBER) |
| Abstract: | We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A key feature is the selection between high- and low-type firms, which differ in terms of their innovative capacity. We estimate the parameters of the model using detailed US Census micro data on firm-level output, R&D and patenting. The model provides a good fit to the dynamics of firm entry and exit, output and R&D, and its implied elasticities are in the ballpark of a range of micro estimates. We find industrial policy subsidizing either the R&D or the continued operation of incumbents reduces growth and welfare. For example, a subsidy to incumbent R&D equivalent to 5% of GDP reduces welfare by about 1.5% because it deters entry of new high-type firms. On the contrary, substantial improvements (of the order of 5% improvement in welfare) are possible if the continued operation of incumbents is taxed while at the same time R&D by incumbents and new entrants is subsidized. This is because of a strong selection effect: R&D resources (skilled labor) are inefficiently used by low-type incumbent firms. Subsidies to incumbents encourage the survival and expansion of these firms at the expense of potential high-type entrants. We show that optimal policy encourages the exit of low-type firms and supports R&D by high-type incumbents and entry. |
| Keywords: | entry; growth; industrial policy; innovation; R&D; reallocation; selection |
| JEL: | E02 L11 O31 O32 O33 |
| Date: | 2013–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2013_022&r=ent |
| By: | Elena Nikolova (EBRD); Dora Simroth (European School of Management and Technology) |
| Abstract: | This paper studies the effect of religious and linguistic diversity in a given locality on individual entrepreneurial behaviour, and finds that cultural diversity and entrepreneurship follow an inverted U-shaped pattern. We make three theoretical contributions. Unlike previous research, we are able to analyse both the attempt to establish an entrepreneurial business (‘entrepreneurial trial’) and success of entrepreneurs. Moreover, we argue that the two types of diversity matter at different stages of entrepreneurship – religious diversity is tightly linked to entrepreneurial trial, while linguistic heterogeneity affects entrepreneurial success. In addition, by identifying a non-linear relationship between diversity and entrepreneurship, we put into perspective previous research that is divided on whether cultural heterogeneity positively or negatively affects firm, regional and country performance. We use a new survey data set that covers more than 30,000 households in eastern Europe and central Asia (the Life in Transition Survey 2010). |
| Keywords: | entrepreneurship, transition region, diversity |
| JEL: | L26 P31 Z12 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ebd:wpaper:158&r=ent |
| By: | Alessandro Arrighetti (Department of Economics, University of Parma); Luca Caricati (Department of Economics, University of Parma); Fabio Landini (Department of Economics, University of Parma); Nadia Monacelli (Department of Economics, University of Parma) |
| Abstract: | This paper presents one of the first studies on the entrepreneurial orientation of Italian university students. For a large sample of students from the University of Parma (Italy), we estimate the sources of entrepreneurial intent, distinguishing between the propensity to start a new business and the perceived likelihood of becoming an entrepreneur. In line with previous research in other countries, entrepreneurial intent is explained by a wide set of variables, including psychological, social and contextual factors. For Italian university students, the current economic crisis and the consequent increase in uncertainty do not seem to significantly weaken the importance of psychological variables as factors shaping entrepreneurial intent, confirming that these variables maintain primary relevance regardless of the context and the economic situation. While the perception of a lack of economic opportunities does not significantly affect the propensity to start a new venture, it does have a negative impact on the perceived likelihood of becoming an entrepreneur. This, in turn, suggests that the ongoing economic recession may indeed have a negative impact on the future entrepreneurial supply through a discouragement effect. Finally, the impact of family and business associations on stimulating entrepreneurial intent turns out not to be statistically significant. The combination of these results significantly contributes to our general understanding of entrepreneurial intent among Italian university students. |
| Keywords: | entrepreneurial intent, university students, Italy, economic crisis |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:cme:wpaper:1301&r=ent |
| By: | Hasan, Iftekhar (Fordham University and Bank of Finland); O’Brien, Jonathan (Lally School of Management & Technology, Rensselaer Polytechnic Institute); Ye , Pengfei (Lally School of Management &Technology, Rensselaer Polytechnic Institute) |
| Abstract: | This study investigates whether institutional bond blockholders (i.e., bond funds that hold more than 5% of a firm’s outstanding bonds) impede firm innovative activities, and if they do, through which channels. We find that long-term bond blockholders do not discourage firms from conducting innovative activities. Short-term bond blockholders, however, significantly reduce both firm investments in R&D and the innovative quality of these investments. Furthermore, their negative impact is stronger than the negative impact of short-term stockholders. Our results cannot be fully explained by short-term bondholders’ a priori investment preferences and are robust to possible endogeneity concerns. Overall, they suggest that the option of the ‘Wall Street walk’ allows bondholders to exert considerable influence on firms’ risk-taking decisions. |
| Keywords: | bondholder; innovation; investment horizon; Wall Street walk |
| JEL: | G23 G31 |
| Date: | 2013–10–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2013_023&r=ent |
| By: | Stadler, Manfred |
| Abstract: | We develop a dynamic stochastic general-equilibrium model of science, education and innovation to explain the simultaneous emergence of innovation clusters and stochastic growth cycles. Firms devote human-capital resources to research activities in order to invent higher quality products. The technological requirements in climbing up the quality ladders increase over time but this hampering effect is compensated for by an improving qualification of researchers allowing for a sustainable process of innovation and scale-invariant growth. Jumps in human capital, triggered by scientific breakthroughs, induce innovation clusters across industries and generate long-run growth cycles. -- |
| Keywords: | Science,Education,Innovation clusters,Stochastic growth cycles |
| JEL: | C61 E32 O33 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuewef:60&r=ent |
| By: | Lei Ji (Ofce sciences-po, Skema Business School) |
| Abstract: | I develop a multi-industry endogenous growth model with the endogenous market structure. Industries are heterogeneous in production unit costs, research and development RD productivities, fixed operating costs and industry level market sizes. The endogenous market structure allows an empirically realistic and theoretically important determination of the individual firms’ market sizes and distinguishes the model from the previous literatures. There are two sets of results. First, the balanced growth rate depends positively on RD productivities and firm market size of both industries but not industry market size. Surprisingly, the steady state total factor productivity TFP level ratio between industry 1 and 2 depends negatively on RD productivity and fixed costs in industry 1 and positively on those parameters in industry 2. Second, industry differences in both TFP growth and R&D intensity mainly reflect differences in quality-adjusted gross profits and RD productivities. Such differences depend on RD productivities and fixed operating cost parameters in general equilibrium. The industry with a higher RD productivity and fixed cost has a lower TFP growth and research intensity compared to the other industry. Differences in production unit costs and industry level market sizes do not to contribute to cross-industry TFP growth differences. These results are substantially different from what is found in the existing literature. Model also offers novel explanations for directed technical change and structural change, and it offers a structure for analyzing the interaction between trade and growth. |
| Keywords: | Cross-industry TFP growth differences, endogenous growth, asymmetric industries,endogenous market structure |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1317&r=ent |
| By: | MATSUDA Naoko |
| Abstract: | In this paper, we analyze the effect of social capital and human capital on the entrepreneurial process. The necessary social capital for completing the exploitation of entrepreneurship opportunities and gaining first profit has been verified to be quite different. It has also been proven that a successful entrepreneur is more strategic when she/he chooses the people with whom and on what to consult. |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:13064&r=ent |