nep-ent New Economics Papers
on Entrepreneurship
Issue of 2019‒04‒01
seven papers chosen by
Marcus Dejardin
Université de Namur

  1. Innovative Events By Max Nathan; Anna Rosso
  2. Public research and innovative entrepreneurship: Preliminary cross-country evidence from micro data By Stefano Breschi; Julie Lassébie; Alexander Lembcke; Carlo Menon; Caroline Paunov
  3. SMEs: Key drivers of green and inclusive growth By Shashwat Koirala
  4. The Link between Entrepreneurial Activities and Angel Investment: An international comparison By HONJO Yuji; NAKAMURA Hiroki
  5. Digitalization of manufacturing process and open innovation: Survey results of small and medium sized firms in Japan By MOTOHASHI Kazuyuki
  6. Effects of multilevel policy mix of public R&D subsidies: Empirical evidence from Japanese local SMEs By Okamuro, Hiroyuki; Nishimura, Junichi
  7. Survey on Actual and Potential Entrepreneurs and Angel Investors in Japan (Japanese) By NAKAMURA Hiroki; HONJO Yuji

  1. By: Max Nathan; Anna Rosso
    Abstract: We take a fresh look at firms' innovation-productivity linkages, using novel data capturing new aspects of innovative activity. We combine UK administrative microdata, media and website content to develop experimental metrics - new product/service launches - for a large panel of SMEs. Extensive validation and descriptive exercises show that launches complement patents, trademarks and innovation surveys. We also establish connections between launches and previous innovative activity. We then link IP, launches and productivity, controlling for media exposure and firm heterogeneity. Launch activity is associated with higher SME productivity, especially in the service sector. High-quality launches and medium-size firms help drive this result.
    Keywords: innovation, productivity, ICT, data science
    JEL: L86
    Date: 2019–03
  2. By: Stefano Breschi (Bocconi University); Julie Lassébie (OECD); Alexander Lembcke (OECD); Carlo Menon (Laterite); Caroline Paunov (Laterite)
    Abstract: This paper provides a first assessment of the degree to which public research contributes to innovative entrepreneurship, using data on start-ups and venture capital (VC). It looks at academic start-ups founded by recent undergraduates and doctorate students or researchers. It shows that academic start-ups represent 15% of all start-ups in the specific sample under scrutiny. Their share is higher in science-based technological fields such as biotechnology (23%). Across the majority of countries and technology fields, start-ups created by undergraduate students represent the highest share of all academic start-ups. As to their performance, start-ups founded by researchers are more likely to patent and those founded by students introduce innovations that are more radical compared to other start-ups. While start-ups founded by undergraduate students receive less VC funding and are less likely to exit via IPO or acquisition, those created by researchers are as successful as their non-academic counterparts.
    Keywords: academic entrepreneurship, innovative entrepreneurship, knowledge transfer, public research, student entrepreneurship
    JEL: L26 O30
    Date: 2019–03–28
  3. By: Shashwat Koirala
    Abstract: Small and medium-sized enterprises (“SMEs”) are important stakeholders for both environmental and economic policymaking. Among OECD countries, they represent roughly 99.7% of all enterprises and 60% of total employment. Simultaneously, while their individual environmental footprint is small, on aggregate, SMEs contribute up to 70% of industrial pollution in Europe. Thus, they have tremendous potential as drivers of green and inclusive growth. Through a comprehensive literature review, this issue paper assesses the trade-offs and synergies between SMEs’ ability to deliver green growth – through greening processes like eco-innovation and adoption of green measures - and their ability to contribute to inclusive growth – through job creation and inclusive business models. This issue paper also reviews relevant policy measures that can help SMEs navigate the opportunities and challenges in delivering green and inclusive growth.
    Date: 2019–03–29
  4. By: HONJO Yuji; NAKAMURA Hiroki
    Abstract: This study explores the link between the probabilities of becoming an entrepreneur and an angel investor. Using data from the Global Entrepreneurship Monitor, we examine what types of individuals invest in new businesses. We present the estimation results for the odds ratio of entrepreneurial activities and angel investment, which may reflect the extent of entrepreneurial ecosystems at the country level. The results reveal the existence of a positive and significant link between entrepreneurial activities and angel investment, indicating that individuals who have experience in entrepreneurial activities are more likely to invest in new businesses. Moreover, we find that the link between entrepreneurial activities and angel investment differs across countries. Specifically, while the proportion of individuals who engage in angel investment in Japan is much lower than in some countries, the link between entrepreneurial activities and angel investment in Japan is greater than in other countries.
    Date: 2019–03
  5. By: MOTOHASHI Kazuyuki
    Abstract: Digitalization has a transformative impact on innovation in firms and industry. In this paper, the results of the Survey on the Changing Nature of Manufacturing Processes and New Product Development are presented to show how the nature of Japanese SMEs in manufacturing industry is changing in the new IT era (AI, big data and IoT). It is found that a firm applying new IT, such as data analytics by machine learning, is likely to be involved in delivering digital services as well as new products (servitalization) and innovation ecosystem, interacting with multiple firms. Such firms address wider customer needs, instead of just meeting existing customer requirements, meaning that its product innovation is likely to happen in new business fields. In addition, a firm which extensively uses its customer data gains more sales and profit contributions from its new product.
    Date: 2019–03
  6. By: Okamuro, Hiroyuki; Nishimura, Junichi
    Abstract: Regional innovation policies have been implemented in several countries. In Japan, controlled decentralization of traditionally centralized innovation policy is ongoing, so that we can observe multilevel policy mix of public R&D subsidies by national, prefecture and city governments. Based on original survey data and financial data of manufacturing SMEs, we empirically estimate their TFP (Total Factor Productivity) and investigate the effects of public R&D subsidies by national, prefecture and city governments. We employ firm-level fixed effect panel estimation in order to control for the effects of any time-invariant factors. We find that only the prefecture subsidy has a positive and significant impact on the TFP of recipient firms, while interactive effect with city subsidy is also positive and significant, if we consider remaining effects after subsidy period. These results suggest that multilevel policy mix of R&D subsidies significantly increase recipients' productivity and that this effect if durable.
    Keywords: R&D subsidy, local authority, multilevel policy mix, SMEs, policy evaluation
    JEL: H71 O38 R58
    Date: 2019–03
  7. By: NAKAMURA Hiroki; HONJO Yuji
    Abstract: Entrepreneurship is essential to social and economic growth. However, when compared globally, entrepreneurship in Japan remains relatively low. To address these issues, there is an ever-growing number of national and local initiatives in industry, government and academia that are meant to promote entrepreneurship and angel investment. However, it is not yet certain which initiatives have contributed to increasing entrepreneurial activity and/or angel investment in Japan. Thus, the purpose of this study was to provide a clearer picture of Japan's actual entrepreneurs and angel investors and the potential for others to become entrepreneurs and/or angel investors. Specifically, based on the results of a survey conducted by the Research Institute of Economy, Trade, and Industry, 10,001 Japanese resident respondents were categorized into the following entrepreneurial types: "actual entrepreneurs," "potential serial entrepreneurs," "former entrepreneurs," "potential entrepreneurs," or as having "general entrepreneurial interests" or "no entrepreneurial interests." They were also categorized into the following angel investor category types: "actual angel investors," "potential angel investors," "ordinary investors," or as being "interested in angel investing," "generally interested in investing," or "not interested in investing." The numbers and percentages of the total sample occupied by each category, the category characteristics, and the measures they considered necessary to promote entrepreneurship were then described.
    Date: 2019–03

This nep-ent issue is ©2019 by Marcus Dejardin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.