nep-ent New Economics Papers
on Entrepreneurship
Issue of 2013‒11‒22
eleven papers chosen by
Marcus Dejardin
University of Namur and Universite' Catholique de Louvain

  1. Origin and emergence of entrepreneurship as a research field. By Meyer, M.; Libaers, D.; Thijs, Bart; Grant, K.; Glänzel, Wolfgang; Debackere, Koenraad
  2. University spinoffs and the "Performance Premium". By Czarnitzki, Dirk; Rammer, Christian; Toole, Andrew A.
  3. Entrepreneurship and Independent Professionals: Why do Professionals not meet with Stereotypes of Entrepreneurship? By Bögenhold, Dieter; Heinonen, Jarna; Akola, Elisa
  4. Entry and markup dynamics in an estimated business cycle model. By Lewis, Vivien; Stevens, Arnoud
  5. What types of firms tend to be more innovative: A study on Germany By Stephan Brunow; Valentina Nafts
  6. Who Creates Jobs? Estimating Job Creation Rates at the Firm Level By Huber, Peter; Oberhofer, Harald; Pfaffermayr , Michael
  7. Product Market Reforms and Incentives to Innovate in Sweden By Edquist, Harald; Henrekson, Magnus
  8. CHOOSE: Towards a Metamodel for Enterprise Architecture in Small and Medium-sized Enterprises By M. BERNAERT; G. POELS; M. SNOECK; M. DE BACKER
  9. Capital Account Openness and the Losses from Financial Frictions By Minsoo Han
  11. Identifying factors influencing Moroccan SMEs internationalization By Adama Tahirou Younoussi; Jamila Jouali; Salah Baba Arwata

  1. By: Meyer, M.; Libaers, D.; Thijs, Bart; Grant, K.; Glänzel, Wolfgang; Debackere, Koenraad
    Abstract: This paper seeks to map out the emergence and evolution of entrepreneurship as an independent field in the social science literature from the early 1990’s to 2009. Our analysis indicates that entrepreneurship has grown steadily during the 1990’s but has truly emerged as a legitimate academic discipline in the latter part of the 00’s. The field has been dominated by researchers from Anglo-Saxon countries over the past twenty years, with particularly strong representations from the US, UK, and Canada. The results from our structural analysis, which is based on a core document approach, point to five large knowledge clusters and further 16 sub-clusters. We characterize the clusters from their cognitive structure and assess the strength of the relationships between these clusters. In addition, a list of most cited articles is presented and discussed.
    Date: 2013–04
  2. By: Czarnitzki, Dirk; Rammer, Christian; Toole, Andrew A.
    Abstract: The creation of spinoff companies is often promoted as a desirable mechanism for transferring knowledge and technologies from research organizations to the private sector for commercialization. In the promotion process, policymakers typically treat these “university” spinoffs like industry startups. However, when university spinoffs involve an employment transition by a researcher out of the not-for-profit sector, the creation of a university spinoff is likely to impose a higher social cost than the creation of an industry startup. To offset this higher social cost, university spinoffs must produce a larger stream of social benefits than industry startups, a performance premium. This paper outlines the arguments why the social costs of entrepreneurship are likely to be higher for academic entrepreneurs and empirically investigates the existence of a performance premium using a sample of German startup companies. We find that university spinoffs exhibit a performance premium of 3.4 percentage points higher employment growth over industry startups. The analysis also shows that the performance premium varies across types of academic entrepreneurs and founders’ academic disciplines.
    Keywords: academic entrepreneurship; startups; technology transfer; open science; firm performance; university spinoff policy; human capital; social capital;
    Date: 2013–01
  3. By: Bögenhold, Dieter; Heinonen, Jarna; Akola, Elisa
    Abstract: The study discusses myths of entrepreneurship by looking at the overlapping areas of entrepreneurship, self-employment and professions. The study argues that professions are part of the category of self-employment. Additionally, the study presents empirical findings drawn from a unique empirical data set from Finland: a survey (N=733) including freelance journalists, translators, interpreters and artists at the blurred boundaries between waged work and entrepreneurship. Findings reveal that the professions are clearly different and the manifestations of entrepreneurship vary, reflecting the work and the labour market situation within the profession. The life and work situations of those in the liberal professions cannot be interpreted in simple black and white schemes or as winners and looser. Instead, many different socio-economic situations can be found ‘in between’, which are driven by different social logics. For entrepreneurship researchers the study opens up new avenues by taking us beyond the push-pull-dichotomy, which over-simplifies the decision to enter self-employment. The term entrepreneurship is often used in an undifferentiated way, and it therefore easily generates myths and stereotypes, which are challenged by the study. A narrower and more realistic view shows that there are diverse agents under the flag of entrepreneurship, who are usually not regarded as core entrepreneurs although they exist in everyday life.
    Keywords: Entrepreneurship, Professions, Self-employment, Occupational Careers, Waged Work, Transitions, Labour Market
    JEL: A14
    Date: 2013
  4. By: Lewis, Vivien; Stevens, Arnoud
    Abstract: How do changes in market structure affect the US business cycle? We estimate a monetary DSGE model with endogenous firm/product entry and a translog expenditure function by Bayesian methods. The dynamics of net business formation allow us to identify the extent to which desired price markups and inflation decrease when entry rises. We find that a 1 percent increase in the number of competitors lowers desired markups by 0.17 percent. While markup fluctuations due to sticky prices or exogenous shocks account for a large proportion of US inflation variability, endogenous changes in desired markups also play a non-negligible role.
    Date: 2013–10
  5. By: Stephan Brunow (Institute for Employment Research (IAB)); Valentina Nafts (Institute for Employment Research (IAB))
    Abstract: Innovation is a key driver of technological progress and growth in a knowledge-based economy. There are various motives for individual firms to innovate: improving quality secures market leadership, introducing new products leads the firm into new markets, adopting new technologies could be seen as a catch-up strategy within an industry or an improvement of the firm’s own products when the technology adopted is based on ideas from other industries. Firms can perform innovation activities in one or more of these areas or in none of them. We therefore raise the question of what types of firms tend to be more innovative, i.e. which firms innovate in more of these areas. For this purpose we employ firm-level survey data and combine it with administrative data from Germany’s social security system. An ordered logit model is estimated using a variety of characteristics which describe the workforce employed and other firm-related variables, the regional environment where the firm is located, as well as industry and region fixed effects.
    Keywords: firm innovation, labor diversity, ordered logit
    JEL: J44 O31 R12
    Date: 2013–11
  6. By: Huber, Peter (Austrian Institute of Economic Research); Oberhofer, Harald (University of Salzburg); Pfaffermayr , Michael (University of Innsbruck)
    Abstract: This paper analyzes econometric models of the Davis, Haltiwanger and Schuh (1996) job creation rate. In line with the most recent job creation literature, we focus on employment-weighted OLS estimation. Our main theoretical result reveals that employment-weighted OLS estimation of DHS job creation rate models provides biased marginal effects estimates. The reason for this is that by definition, the error terms for entering and exiting firms are non-stochastic and non-zero. This violates the crucial mean independence assumption requiring that the conditional expectation of the errors is zero for all firms. Consequently, we argue that firm entries and exits should be analyzed with separate econometric models and propose alternative maximum likelihood estimators which are easy to implement. A small-scale Monte Carlo analysis and an empirical exercise using the population of Austrian firms point to the relevance of our analytical findings.
    Keywords: DHS job creation rate; firm size; firm age; maximum likelihood estimation; three-part model; multi-part model; Monte Carlo simulation
    JEL: C18 C53 D22 E24 L25 L26 M13
    Date: 2013–11–15
  7. By: Edquist, Harald (Fores); Henrekson, Magnus (Research Institute of Industrial Economics (IFN))
    Abstract: The Swedish economy has developed rapidly since the mid-1990s relative to most comparable countries, in particular relative to almost all other EU-15 countries. We investigate two policy areas that are believed to have been important for the strong economic development in Sweden during the last two decades, namely product market reforms and incentives to innovate. The paper provides a short description of the policy changes that have taken place within these areas since the early 1990s and offers ideas for additional policy reforms that would pave the way for continued successful economic development.
    Keywords: Economic reforms; Entrepreneurship; Innovation; Institutions; Product market regulations; Sweden
    JEL: L53 O31 O52
    Date: 2013–11–13
    Abstract: Enterprise architecture (EA) is a coherent whole of principles, methods, and models that are used in the design and realization of an enterprise’s organizational structure, business processes, information systems, and infrastructure. Recent research indicates the need for EA in small and medium-sized enterprises (SMEs), important drivers of economy, as they struggle with problems related to a lack of structure and overview of their business. However, existing EA frameworks are perceived as too complex and no EA approach adapted to an SME context exists. Therefore, this paper presents the CHOOSE metamodel for EA in SMEs that is developed and evaluated during action research in a Belgian SME. This metamodel is based on the essentials of EA frameworks and is kept simple to be usable in an SME context. The final CHOOSE metamodel includes only four essential concepts (goal, actor, operation, object), one for each most frequently used EA focus. An extract from the CHOOSE model from the Belgian SME is presented as an example. Finally, the CHOOSE metamodel is evaluated according to the EA essentials and the requirements for EA in an SME context.
    Keywords: Enterprise architecture; Small and medium-sized enterprises; CHOOSE; Metamodel
    Date: 2013–10
  9. By: Minsoo Han (Pennsylvania State University)
    Abstract: The goal of this paper is to isolate the role of openness to international financial markets (capital account openness) on the total factor productivity (TFP) effect of financial frictions. To do so, I formulate a model in which individual households are either workers or entrepreneurs, can only save in the form of capital, and entrepreneurs are subject to a collateral constraint. Using this structure, I compare two steady states of a calibrated model numerically: one in which the capital rental rate must clear a domestic capital rental market (closed economy), and one in which that rate is given by the world (small open economy). The model predicts that a small open economy is affected less by financial frictions than a closed economy: for the tightest collateral constraint, TFP in a small open economy is only about 1% lower than in the economy without a collateral constraint, while it is 15% lower in a closed economy. TFP losses in a small open economy reflect factor misallocation among incumbent entrepreneurs (intensive margin), not distortions along entry-exit margin, whereas for a tight financial frictions, there are distortions on both intensive and entry-exit margins in a closed economy. Using macro data, I find that a 1% rise in openness is associated with 0.196% decline in the effect of financial frictions on TFP. Running the same regression on subsamples, I also find that this empirical result mainly comes from a group of low income countries.
    Date: 2013
  10. By: Paul O'Sullivan (Department of Economics Finance and Accounting, National University of Ireland, Maynooth)
    Abstract: This paper analyses the incentives of incumbent firms to form a first-mover RJV when faced with possible entry. If entry is accommodated, firms’ relative profits under R&D competition and RJV formation depend on R&D spillovers and firms’ R&D efficiency. RJV formation may make entry unprofitable if spillovers are sufficiently low. If entry is deterred, RJV formation may be more profitable. Similarly, whether accommodation or deterrence is more profitable under RJV formation depends on spillovers and the firms’ efficiency. How welfare is affected by RJV formation depends on whether output is exported or domestically consumed. There may be a role for active government policy to affect market outcomes.
    JEL: D2 L2 L4
    Date: 2013
  11. By: Adama Tahirou Younoussi (LACEME - Laboratoire d'études sur la compétitivité économique et le management de l'entreprise - Faculté des sciences juridiques, économiques et sociales de Rabat Souissi); Jamila Jouali (LACEME - Laboratoire d'études sur la compétitivité économique et le management de l'entreprise - Faculté des sciences juridiques, économiques et sociales de Rabat Souissi); Salah Baba Arwata (LACEME - Laboratoire d'études sur la compétitivité économique et le management de l'entreprise - Faculté des sciences juridiques, économiques et sociales de Rabat Souissi)
    Abstract: With the unpredictable business environment, unstable economic conditions and worldwide integration of markets, internationalization activities have become an important way to Moroccan SMEs development and a big challenge for the national agency for SMEs promotion (NAPSME). Despite the implementation of policies aimed at increasing the internationalization capacity of these companies prior to the entry of new players in the domestic market, obstacles remain. By using a data of 64 recognized people working in the field and considered as experts because of their qualifications, experience and positions, we examines the factors influencing Moroccan SMEs internationalization. The results show that various factors including contingency, networking, information and external factors are critical for these organizations internationalization. They also reveal that government support, manager's motivational aspects,industry, geographic proximity, language similarity with other Maghreb countries and their impact on the completion of a transaction have influence on Moroccan SMEs internationalization process.
    Keywords: Influencing factors ; internationalization ; Moroccan SMEs ; Experts
    Date: 2013–09

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