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on Entrepreneurship |
| By: | Akcigit, Ufuk; Ates, Sina T. |
| Abstract: | In the past several decades, the U.S. economy has witnessed a number of striking trends that indicate a rising market concentration and a slowdown in business dynamism. In this paper, we make an attempt to understand potential common forces behind these empirical regularities through the lens of a micro-founded general equilibrium model of endogenous firm dynamics. Importantly, the theoretical model captures the strategic behavior between competing firms, its effect on their innovation decisions, and the resulting ``best versus the rest'' dynamics. We focus on multiple potential mechanisms that can potentially drive the observed changes and use the calibrated model to assess the relative importance of these channels with particular attention to the implied transitional dynamics. Our results highlight the dominant role of a decline in the intensity of knowledge diffusion from the frontier firms to the laggard ones in explaining the observed shifts. We conclude by presenting new evidence that corroborates a declining knowledge diffusion in the economy. We document a higher concentration of patenting in the hands of firms with the largest stock and a changing nature of patents, especially in the post-2000 period, which suggests a heavy use of intellectual property protection by market leaders to limit the diffusion of knowledge. These findings present a potential avenue for future research on the drivers of declining knowledge diffusion. |
| Keywords: | business dynamism; Competition; knowledge diffusion; Market concentration |
| JEL: | E22 E25 L12 O31 O33 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13669&r=all |
| By: | Crowley, Frank; Jordan, Declan |
| Abstract: | A key concept in the economics of innovation is the 'public good' nature of knowledge. This generates a tension between incentivizing knowledge production by allowing knowledge creators appropriate the economic benefits and encouraging its diffusion to enhance the social return to knowledge creation. Where firms operate in localities that are characterized by greater entrepreneurship, there may be lower incentives to engage in research and development. This would result from a higher risk of knowledge spillovers to local start-ups and/or that employees may exploit new knowledge in spin-out firms. It has also been suggested in the literature that greater local entrepreneurial activity may lower profits for incumbent firms, through greater competition and/or the leakage of commercially valuable new knowledge. This paper presents a novel conceptual perspective on this tension and empirically tests it. Using Swedish firmlevel data and county-level data on new start-ups, this paper estimates the effect on R&D activity of local rates of business start-ups. It finds that greater numbers of new start-ups in a metropolitan area reduces firm-level R&D expenditure. However, this relationship is not linear, so that at higher levels of new firm formation in a region, firm-level R&D expenditure falls at a diminishing rate. This suggests that the effect of local entrepreneurship on a business' R&D decisions is conditioned by the extent of that entrepreneurship. |
| Keywords: | Innovation,entrepreneurship,absorptive capacity,knowledge spillovers |
| JEL: | R11 O33 O31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:srercw:srercwp20182&r=all |
| By: | OECD |
| Abstract: | This review provides an in-depth analysis of the Lithuanian policy ecosystem in place for social entrepreneurship and social enterprises. It identifies the country’s key strengths and challenges and provides policy recommendations to support the development of a stronger policy ecosystem for social entrepreneurship and social enterprises. Key policy issues analysed include: raising awareness and clarifying the conceptual framework (Chapter 2); coordinating policy and legal frameworks (Chapter 3); enhancing the role of social enterprises in public procurement (Chapter 4); promoting social impact measurement and reporting (Chapter 5); and improving their access to finance (Chapter 6). |
| Keywords: | local development, policy ecosystem, social economy, social enterprises, social entrepreneurship, social impact, social innovation |
| JEL: | L31 L33 |
| Date: | 2019–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2019/02-en&r=all |
| By: | Jääskeläinen, Jan; Tukiainen, Janne |
| Abstract: | We provide novel stylized facts about competition, bidding, entry and bidders across a wide spectrum of public procurement auctions using comprehensive and rich Finnish data. Competition for publicly procured contracts is relatively low with a median bidder count of two (three conditional on receiving any bids). Bidders typically are very heterogeneous in size, which likely limits competition further. Competition seems to work roughly as expected as on average (standardized) bids mainly decrease with the number of actual and potential bidders. Using information on registrations as a good proxy for potential bidders, we show that the ratio of actual to potential bidders increases with the number of actual bidders. We also show that being present in the contracting authority's municipality or province correlates positively with registering, entry (bidding) and winning, but other firm characteristics matter less. While attracting more competition by means of contract and auction rule design is a desirable policy goal and we show suggestive evidence that the use of scoring rule can be an entry barrier, increasing competition may be in practice difficult. Therefore, reservation prices may be a more useful policy tool to alleviate issues associated with the lack of competition. |
| Keywords: | competition, entry, public procurement, Local public finance and provision of public services, D44, H57, H76, L11, |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:118&r=all |
| By: | Nathan, Max (University of Birmingham); Rosso, Anna (University of Milan) |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12213&r=all |
| By: | Iman Cheratian (Tarbiat Modares University); Saleh Goltabar; Carla Daniela Calá |
| Abstract: | Given the importance of entry promotion to prompt economic growth and promote structural transformation, this paper investigates the regional determinants of firm entry in the 30 Iranian regions, considering four different sizes -micro, small, medium and large-over 2000-2015. Using a new and unique database, we estimate panel non-spatial and spatial lag and error dependence models. We find that regional factors explain firm entry, but the impact is not homogeneous across firms of different size. We also find that most types of firms are influenced by the negative effect of economic sanctions during the sample period. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:1285&r=all |
| By: | Diego Aboal; Gustavo Rojas; Belén Servín; Paz Queraltó |
| Abstract: | In this paper we evaluate the impact of two programs to support innovation in micro, small and medium enterprises in Paraguay. This article has two contributions to literature. First, the evidence on the impact of this type of programs in developing countries is still scarce. Second, we evaluate the impacts on some variables that have been largely overlooked in the literature, such as innovation activities other than R&D. The evaluation finds positive and significant effects on the probability of carrying out various innovation activities, on the probability of achieving different types of innovation and on the incorporation of technical personnel to the firms. A negative effect on R&D was found, which might be showing a displacement effect of this innovation activity by others. The most robust results are those related to the impact of the program on process and product innovation. The impacts on innovation activities and employment are less robust to alternative specifications and samples. |
| Keywords: | Innovation support programs, innovation, impact evaluation, Paraguay |
| JEL: | O31 O32 O38 C21 |
| Date: | 2019–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:col:000518:017233&r=all |
| By: | Bircan, Cagatay; de Haas, Ralph |
| Abstract: | We exploit historically-determined variation in local credit markets to identify the impact of bank lending on firm innovation across Russia. We find that deeper credit markets increase firms' use of bank credit, their adoption of new products and technologies, and productivity growth. This relationship is more pronounced in industries further from the technological frontier; more exposed to import competition; and that export more. These impacts are also stronger for firms near historical R&D centers or railways, and in regions with supportive institutions. Consistent with these results, credit markets contribute to economic growth in such regions. |
| Keywords: | credit constraints; Firm innovation; institutions; Russia; Technological change |
| JEL: | D22 G21 O12 O31 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13663&r=all |