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on Entrepreneurship |
| By: | Anyadike-Danes, Michael (Aston Business School and Enterprise Research Centre, UK); Bjuggren, Carl Magnus (Research Institute of Industrial Economics (IFN), Sweden); Dumont, Michel (Federal Planning Bureau and Ghent University, Belgium); Gottschalk, Sandra (ZEW, Germany); Hölzl, Werner (Austrian Institute of Economic Research (WIFO)); Johansson, Dan (Örebro University School of Business); Maliranta, Mika (ETLA and University of Jyväskylä, Finland); Myrann, Anja (Ragnar Frisch Centre for Economic Research, Norway); Nielsen, Kristian (Aalborg University, Denmark); Zheng, Guanyu (Productivity Commission, New Zealand) |
| Abstract: | This paper addresses three simple questions: how should the contribution of HGFs to job creation be measured? how much does this contribution vary across countries? to what extent does the cross-country variation depend on variation in the proportion of HGFs in the business population? The first is a methodological question which we answer using a more highly articulated version of the standard job creation and destruction accounts. The other two are empirical questions which we answer using a purpose-built dataset assembled from national firm-level sources and covering nine countries, spanning the ten three year periods from 2000/03 to 2009/12. The basic principle governing the development of the accounting framework is the choice of appropriate comparators. Firstly, when measuring contributions to job creation, we should focus on just job creating firms, otherwise we are summing over contributions from firms with positive, zero, and negative job creation numbers. Secondly, because we know growth depends in part on size, the ’natural’ comparison for HGFs is with job creation by similar-sized firms which simply did not grow as fast as HGFs. However, we also show how the measurement framework can be further extended to include, for example, a consistent measure of the contribution of small job creating firms. On the empirical side, we find that the HGF share of job creation by large job creating firms varies across countries by a factor of two, from around one third to two thirds. A relatively small proportion of this cross-country variation is accounted for by variations in the influence of HGFs on job creation. On average HGFs generated between three or four times as many jobs as large non-HGF job creating firms, but this ratio is relatively similar across countries. The bulk of the cross-country variation in HGF contribution to job creation is accounted for by the relative abundance (or rarity) of HGFs. Moreover, we also show that the measurement of abundance depends upon the choice of measurement framework: the ’winner’ of a cross-national HGF ’beauty context’ on one measure will not necessarily be the winner on another. |
| Keywords: | high-growth firms; firm growth; job creation |
| JEL: | D22 E24 L11 L25 L26 M13 |
| Date: | 2018–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2018_007&r=ent |
| By: | Bernstein, Shai (Stanford University); Colonnelli, Emanuele (Stanford University); Malacrino, Davide (IMF); McQuade, Timothy James (Stanford University) |
| Abstract: | Firm entry plays an important role in the amplification and propagation of aggregate economic shocks. In this paper, we study the characteristics of the actual individuals who drive firm entry response to aggregate shocks, the marginal entrepreneurs. We use employer-employee matched data from Brazil and develop an empirical strategy that links fluctuations in global commodity prices to municipality level agricultural endowments to identify local demand shocks. We find that increases in global commodity prices lead to a significant increase in new firm creation and this effect is almost entirely driven by young individuals. Within the young, we further document that the most responsive individuals are those who are more educated and who work in occupations that require generalist, managerial skills. In contrast, we find no such response among older skilled and educated individuals. Municipalities with better access to finance and higher concentrations of skilled individuals see a stronger entrepreneurial response by the young. These findings shed light on the potential ramifications of aging populations on the entrepreneurial responsiveness of economies to aggregate shocks. |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:3650&r=ent |
| By: | Baum, Christopher F (Boston College and DIW Berlin); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Stephan, Andreas (Jönköping International Business School (JIBS) & Centre of Excellence for Science and Innovation Studies (CESIS)); Viklund-Ros, Ingrid (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | We exploit increased access to detailed employer-employee data to assess whether outside board members affect innovation performance among start-up firms. Using data for all new limited companies in Sweden born during 1999–2013 which have no more then 10 employees when formed, we provide structural equation estimates that deal with the endogenous selection of board directors. Our empirical findings show that an increase in the board’s expertise, measured by the relative productivity of the firms where outsiders are employed, has a significant and positive impact on the new firm’s propensity to apply for both patents and trademarks. |
| Keywords: | Start-ups; outside directors; innovation; patents; trademarks; productivity; endogeneity |
| JEL: | D24 O33 |
| Date: | 2018–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0468&r=ent |
| By: | Mohamad D. Revindo (Research Associate, Institute for Economic and Social Research, Faculty of Economics and Bussiness , University of Indonesia, Jakarta); Christopher Gan (Professor in Accounting and Finance, Faculty of Agribusiness and Commerce, Department of Finance and Business System, Lincoln University, New Zealand) |
| Abstract: | Small and Medium-sized Enterprises (SMEs) are more constrained to participate in export market than their large counterparts despite various export assistance provision by the government. Extant literature on SME internationalization mostly focus more on how non-exporting SMEs can become exporters than on how exporting SMEs can sustain and expand their export. This study aims to investigate the factors affecting SMEs’ export intensity with reference to the case of Indonesia. Fractional-logit regressions were used to identify the influence of export-exhibiting factors, export-inhibiting factors, and firm and owner characteristics on SMEs’ export intensity. The evidences were collected from 497 SMEs in seven provinces in Jawa, Madura and Bali regions. The findings show that SMEs’ export intensity is affected by some firm characteristics including firm age and total employees. Export intensity is also affected by some exhibiting factors including owners’ overseas and MNC/exporting firm work experience, central government agencies’ assistance, network relationships with non-government actors, location, export market of choices and years of exporting. By contrast, export intensity is adversely affected by perceived difficulties in overcoming informational and human resources barriers, distribution, logistics and promotional barriers, financial barriers, foreign government barriers, procedural barriers and price barriers. The policy and managerial implications of the findings are discussed. |
| Keywords: | SMEs — internationalization — export intensity — export barriers — Indonesia |
| JEL: | F23 L25 M13 M16 O17 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:lpe:wpaper:201820&r=ent |
| By: | Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Andreas, Andreas (Jönköping International Business School (JIBS) & Centre of Excellence for Science and Innovation Studies (CESIS)); Wulandari, Febi (Jönköping International Business School (JIBS)) |
| Abstract: | Facing the challenge of climate change, innovations that imply environmental benefits create business opportunities for entrepreneurs. This paper analyzes innovation capabilities of startups in Cleantech and how the innovation outcomes of those startups develop over time. Based on the Mannheim Foundation Panel and applying propensity score matching, a cohort of 566 Cleantech startups is analyzed and compared with a control group of non-Cleantech startups. We find that startups in Cleantech have, on average, higher innovation capabilities compared with all startups. However, Cleantech startups are a heterogeneous group including ventures using common technology and those developing new technology. Our econometric evidence shows that, ceteris paribus, Cleantech startups are more likely to combine existing technology in a novel way. Finally, we find that Cleantech startups do, on average, develop more market novelties in later years compared to theirs peers. |
| Keywords: | Innovative startups; green innovations; Cleantech; capabilities; policies |
| JEL: | M13 O13 O25 O31 |
| Date: | 2018–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0467&r=ent |
| By: | Marc Bourreau; Lukasz Grzybowski; Maude Hasbi |
| Abstract: | We use panel data on 36,104 municipalities in metropolitan France over the period 2010-2014 to estimate two models of entry into local markets by: (i) alternative operators using wholesale access to the legacy copper network via local loop unbundling (LLU), and (ii) the incumbent and two alternative operators using the fiber technology. We find that a higher number of LLU competitors, and hence a less concentrated local market, has a positive impact on entry by fiber operators. Moreover, the presence of upgraded cable network in the local municipality stimulates fiber deployment. However, firms may choose to upgrade copper lines instead of investing in fiber networks. We use the estimates to calculate entry thresholds into local markets, which are substantially lower for broadband provision via LLU than via fiber and decrease over time. Fiber deployment becomes cheaper over time, but according to our estimates it will remain unprofitable for the vast majority of municipalities in France within the next years. |
| Keywords: | fiber broadband, local loop unbundling, market entry |
| JEL: | K23 L13 L51 L96 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7006&r=ent |
| By: | Alfonso Expósito (Department of Economic Analysis and Political Economy, University of Seville, Calle San Fernando 4, 41004 Sevilla (Spain).); Juan A. Sanchis-Llopis (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).) |
| Abstract: | This paper examines the impacts of product, process, and organisational innovations on two alternative dimensions of business performance: finance and operations. Two indicators capture financial performance: sales increase and production cost reduction. Operational firm performance is captured by two alternative indicators: productive capacity augmentation and quality improvement of product/service provided by the firm. Using a wide-ranging sample of Spanish SMEs, our findings highlight the existence of significant impacts of innovation on both these dimensions of business performance, although these impacts differ regarding the type of innovation and the performance indicator considered. Furthermore, our results indicate that the relationship between innovation choices in SMEs and business performance should be analysed from a multidimensional approach. These findings reveal significant implications for innovation policies and innovation strategies for SMEs. |
| Keywords: | innovation, business performance, multi-dimensional analysis, SME, Spain |
| JEL: | O32 L25 C25 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1805&r=ent |
| By: | Luca, Spinesi; Mario, Tirelli |
| Abstract: | R&D investment are an important engine of growth and development. Yet economists have often claimed underinvestment, also due to the asymmetric information between inside investors and outside investors and financiers, and the consequent capital and financial market imperfections. Some recent empirical evidence robustly supports these claims. Motivated by this evidence, we study the effects of asymmetric information and financial frictions on R&D investment within a dynamic GE economy of Shumpeterian tradition. The model and equilibrium concept we propose is rich enough to represent investment and innovation decisions, financial decisions and decisions regarding technology adoption/diffusion through patent licensing. Qualitative predictions indicate that the financial policy of the firm matters in explaining both entrepreneurial production and innovation decisions. Young R&D-intensive firms might rely more heavily on internal sources and equity than on debt financing, relatively to what would otherwise be observed in absence of frictions. These findings contribute to explain the type of financial hierarchy recently highlighted in the empirical studies. |
| Keywords: | Innovation, R&D, Shumpeterian growth, firm financial structure, asymmetric information, financial markets, general equilibrium. |
| JEL: | D5 D53 D92 O31 O33 O34 O4 |
| Date: | 2018–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86860&r=ent |