nep-ent New Economics Papers
on Entrepreneurship
Issue of 2014‒07‒21
four papers chosen by
Marcus Dejardin
Université de Namur

  1. Railroad expansion and entrepreneurship: Evidence from Meiji Japan By John Tang
  2. When arm’s length is too far: relationship banking over the business cycle By Thorsten Beck; Hans Degryse; Ralph De Haas; Neeltje van Horen
  3. Constraints, Determinants of SME Innovation, and the Role of Government Support By OUM Sothea; Narjoko Dionisius; Charles HARVIE
  4. Horizon 2020 e COSME: ricerca, innovazione, competitività e accesso al credito per il rilancio dell’industria e delle PMI By Andrea Sartori

  1. By: John Tang
    Abstract: Railroads in Meiji Japan are credited with facilitating factor mobility as well as access to human and financial capital, but the impact on firms is unclear. Using a newly developed firm-level dataset and a difference-in-differences model that exploits the temporal and spatial variation of railroad expansion, I assess the relationship between railways and firm activity across Japan. Results indicate that railroad expansion corresponded with increased firm activity, particularly in manufacturing, although this effect is mitigated in less populous regions. These findings are consistent with industrial agglomeration in areas with larger markets and earlier development among both new and existing establishments.
    JEL: L26 N75 O53
    Date: 2013
  2. By: Thorsten Beck (Cass Business School); Hans Degryse (Faculty of Economics and Business, KU Leuven); Ralph De Haas (EBRD); Neeltje van Horen (De Nederlandsche Bank)
    Abstract: Using a novel way to identify relationship and transaction banks, we study how banks’ lending techniques affect funding to SMEs over the business cycle. For 21 countries we link the lending techniques that banks use in the direct vicinity of firms to these firms’ credit constraints at two contrasting points of the business cycle. We show that relationship lending alleviates credit constraints during a cyclical downturn but not during a boom period. The positive impact of relationship lending in an economic downturn is strongest for smaller and more opaque firms and in regions where the downturn is more severe.
    Keywords: Relationship banking, credit constraints, business cycle
    JEL: F36 G21 L26 O12
    Date: 2014–07
  3. By: OUM Sothea (Economic Research Institute for ASEAN and East Asia (ERIA)); Narjoko Dionisius (Economic Research Institute for ASEAN and East Asia (ERIA)); Charles HARVIE (Centre for Small Business and Regional Research School of Economics, University of Wollongong, Australia)
    Abstract: This paper provides an empirical analysis of potential constraints to SMEs upgrading their capability to innovate, and assesses the effectiveness of government support in overcoming these constraints. The justification for government support is that market failures can hinder SMEs’ access to information, finance, technology, and human resources. This paper focuses on the impact of the perceived effectiveness of government support through business development services in terms of providing: (i) training; (ii) counselling and advice; (iii) technology development and transfer; (iv) information; (v) business linkages; (vi) financing; and (vii) a conducive business environment. The effectiveness of this support is evaluated against the ability of SMEs to innovate.
    Keywords: : SMEs, constraints, innovation, government support, and developing Asia.
    JEL: L20 L25
    Date: 2014–10
  4. By: Andrea Sartori
    Abstract: The aim of the research is to analyse and summarise two EU programmes within the EU Multiannual Financial Framework (2014-2020): Horizon 2020 and COSME (Competitiveness of Enterprises and Small and Mediumsized Enterprises). They are conceived to stimulate, respectively, research, innovation, and competitive techno-science and competitiveness of productive systems. The research is divided into three parts. The first part outlines the basic features of the Multiannual Financial Framework (2014-2020) in quantitative and qualitative terms with particular reference to Horizon 2020 and COSME. The second part examines Horizon 2020 programme for research and innovation, identifying and describing its legal basis, architecture, budget breakdown and the three pillars: “Excellence science”, “Industrial leadership”, “Societal Challenges”. The analysis focuses on the second pillar detailing the measures to encourage the enabling and industrial technologies, access to risk finance (equity and debt), innovation in SMEs. A specific focus is devoted to the “SME Instrument”. In the third part, similarly, is performed a description of COSME, the programme for the competitiveness of enterprises, deepening the specific actions to internationalisation, to improve access to markets, businesses framework conditions, culture of entrepreneurship and, in particular, access to finance.
    Keywords: Horizon 2020; Orizzonte 2020; COSME; Europa 2020; Quadro finanziario pluriennale; programmi comunitari; ricerca; sviluppo; innovazione; competitività; accesso al credito; internazionalizzazione; industria; piccole e medie imprese; PMI; Community programs; research; development; innovation; competitiveness; access to credit; internationalization; industry; small and medium-sized enterprises; SMEs;
    JEL: O30 O31 O38 L5 I20 I28 H50 H54
    Date: 2014

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