nep-ent New Economics Papers
on Entrepreneurship
Issue of 2019‒09‒16
eight papers chosen by
Marcus Dejardin
Université de Namur

  1. Gender Differences in Self-employment Duration: the Case of Opportunity and Necessity Entrepreneurs By Adela Luque; Maggie R. Jones
  2. Are Foreign Stem PhDs More Entrepreneurial? Entrepreneurial Characteristics, Preferences and Employment Outcomes of Native and Foreign Science & Engineering PhD Students By Michael Roach; Henry Sauermann; John Skrentny
  3. Animate the cluster or subsidize collaborative R&D? A multiple overlapping treatments approach to assess the impact of the French cluster policy By Mar, M.; Massard, N.
  4. R&D and firm resilience during bad times By Maria Garcia-Vega; Oscar Vicente-Chirivella
  5. A tale of two taxes: State-dependency of tax policy By K. Peren Arin; Emin Gahramanov; Tolga Omay; Mehmet A. Ulubasoglu
  6. Participation and benefits of SMEs in GVCs in Southeast Asia By Javier López González; Laura Munro; Julien Gourdon; Emanuele Mazzini; Andrea Andrenelli
  7. Helping SMEs internationalise through trade facilitation By Javier López González; Silvia Sorescu
  8. Fostering participation in digital trade for ASEAN MSMEs By Javier López González

  1. By: Adela Luque; Maggie R. Jones
    Abstract: A strand of the self-employment literature suggests that those “pushed” into self-employment out of necessity may perform differently from those “pulled” into self-employment to pursue a business opportunity. While findings on self-employment outcomes by self-employed type are not unanimous, there is mounting evidence that performance outcomes differ between these two self-employed types. Another strand of the literature has found important gender differences in self-employment entry rates, motivations for entry, and outcomes. Using a unique set of data that links the American Community Survey to administrative data from Form 1040 and W-2 records, we bring together these two strands of the literature. We explore whether there are gender differences in self-employment duration of self-employed types. In particular, we examine the likelihood of self-employment exit towards unemployment versus the wage sector for five consecutive entry cohorts, including two cohorts who entered self-employment during the Great Recession. Severely limited labor-market opportunities may have driven many in the recession cohorts to enter self-employment, while those entering self-employment during the boom may have been pursuing opportunities under favorable market conditions. To more explicitly test the concept of “necessity” versus “opportunity” self-employment, we also examine the wage labor attachment (or weeks worked in the wage sector) in the year prior to becoming self-employed. We find that, within the cohorts we examine, there are gender differences in the rate at which men and women depart self-employment for either wage work or non-participation, but that the patterns are dependent on pre self-employment wage-sector attachment and cohort effects.
    Keywords: Self-employment, gender differences, gender, entrepreneurship, necessity entrepreneur, opportunity entrepreneur, self-employment duration, Great Recession.
    JEL: J15 J20 J24 L26 M13
    Date: 2019–09
  2. By: Michael Roach; Henry Sauermann; John Skrentny
    Abstract: Prior research has shown that immigrants make important contributions to US innovation and are more likely than natives to become entrepreneurs. However, there is little evidence on how foreign and native high-skilled workers differ prior to entering the workforce. Moreover, little attention has been paid to distinguishing between founders and employees who join startups. We draw on a longitudinal survey of over 5,600 foreign and native STEM PhD students at U.S. research universities to examine entrepreneurial characteristics and career preferences prior to graduation, as well as founding and employment outcomes after graduation. First, we find that foreign PhD students differ from native PhD students with respect to individual characteristics typically associated with entrepreneurship such as risk tolerance, a preference for autonomy, and interest in commercialization. Second, foreign PhD students are more likely to express intentions to become a founder or a startup employee prior to graduation. Third, despite their entrepreneurial career interests, foreign PhDs are less likely to become founders or startup employees in their first industry job after graduation. These patterns call for future research on factors that enable or constrain foreign STEM workers from realizing their entrepreneurial career aspirations.
    JEL: I23 J0 J24 J44 J48 O3
    Date: 2019–09
  3. By: Mar, M.; Massard, N.
    Abstract: This paper examines the effectiveness of the French competitiveness cluster policy on participating SMEs in terms of innovation and economic performance. Using an original dataset, we construct different measures of treatment with crossover designs. The findings indicate substantial additionality effects on R&D and employment and weak or insignificant effects on other types of economic performance. While only adhering to clusters induces much stronger positive impacts on SMEs than only participating in R&D collaborative projects, the policy is most effective when the two treatments are simultaneously used. To achieve its impact on SMEs, the cluster policy should not overlook low-cost instruments such as animation actions and common services.
    JEL: C14 C21 O32 O38
    Date: 2019
  4. By: Maria Garcia-Vega; Oscar Vicente-Chirivella
    Abstract: In this paper, we empirically investigate how technology transfers from universities to private firms influence firm innovativeness. Using data on R&D acquisitions from universities of more than 10,000 Spanish firms for the period 2005-2013 and applying propensity score matching techniques and DiD estimations, we find that technology transfers from universities strongly increase firm innovativeness. We next explore heterogeneous effects in order to analyse whether these gains are mediated by firm size and the business cycle. Our results suggest that the contribution of universities to firm innovation is particularly important for small firms, during the whole business cycle and it goes beyond its direct effect on innovation: We find that technology transfers from universities generate positive spillovers and enhance firms’ internal R&D capabilities. Our results suggest that the knowledge generated by universities makes an important contribution to economic growth through technology transfers, which makes firms more innovative. Hence, knowledge creation by universities provides an important public good.
    Keywords: Universities, Technology Transfers, Innovation, Firms
    Date: 2019
  5. By: K. Peren Arin; Emin Gahramanov; Tolga Omay; Mehmet A. Ulubasoglu
    Abstract: Previous literature provided mixed evidence regarding the effects of two major tax instruments, namely, labor income taxes and corporate taxes on economic growth. We hypothesize that the mixed evidence may be due to state-dependency of labor taxes. While corporate taxes retard economic growth by discouraging entrepreneurship in a linear fashion, the negative effect of labor taxes on growth may depend on the state of the economy, and may, thus, be non-linear. We provide a simple theoretical model which supports the latter hypothesis, and empirically test our predictions by using both statutory and average tax rates for a sample of 19 OECD countries over the 1981–2005 period. We also contribute to the literature by employing a newly developed Panel Smooth Transition (PSTR) model that controls for non-linearities in the tax structure-economic growth relationship. Our empirical findings suggest that while taxes on corporate income are distortionary for growth in both high- and low-growth regimes, taxes on labor income are harmful only during the high-growth regime.
    Keywords: Panel Smooth Transition, Fiscal Policy, Tax Policy, Growth
    JEL: O23 H30
    Date: 2019–09
  6. By: Javier López González (OECD); Laura Munro (OECD); Julien Gourdon (OECD); Emanuele Mazzini (OECD); Andrea Andrenelli (OECD)
    Abstract: Although global value chain (GVCs) participation in Southeast Asia has been growing, little is known about whether the benefits from participation are accruing to larger firms or if small and medium sized enterprises (SMEs), which make up the majority of companies and employ the bulk of the domestic workforce, are also able to take advantage of the new opportunities on offer. This paper uses detailed firm level data from Southeast Asian countries to split the OECD Trade in Value Added database and map how SMEs have been participating in GVCs. It then identifies the benefits associated with this participation and looks into the policy levers that can help make GVC participation in the region more inclusive. It suggest that policy makers focus on: i) reducing trade costs that hit SMEs hardest; including tariffs, trade agreements and trade facilitation; ii) creating an enabling environment to promote domestic linkages so that SMEs can create partnerships with larger firms and multinationals to export indirectly; and iii) reducing non-tariff measures that are especially onerous for SMEs through wider ASEAN regulatory harmonisation and adopting more flexible rules of origin.
    Keywords: Global Value Chains (GVCs), multinationals, Non-Tariff Measures (NTMs), Rules of Origin (RoO), Small and Medium-sized Enterprises (SMEs), trade in value added
    JEL: D22 F13 F14 L11 L25
    Date: 2019–09–11
  7. By: Javier López González (OECD); Silvia Sorescu (OECD)
    Abstract: Small and medium-sized enterprises (SMEs) play an important role in generating economic activity and employment in developing and developed countries. However, partly due to remaining at-the-border trade costs, SMEs continue to be less represented in international trade – as direct exporters or importers – than larger firms. Drawing on cross-country data from the World Bank Enterprise Survey (WBES), together with the OECD Trade by Enterprise Characteristics (TEC), this paper looks at the relationship between the trade facilitation environment – as measured through the OECD Trade Facilitation Indicators (TFIs) – and various measures of international engagement of SMEs. While there are differentiated impacts across firm size for different trade facilitation areas, the analysis shows that firms of all sizes across both developed and developing economies benefit from improvements in the overall trade facilitation environment, helping them export and import. However, on aggregate, smaller firms benefit more from improvements in the overall trade facilitation environment relative to large firms. The analysis also suggests that some trade facilitation measures matter more in addressing fixed versus variable costs for SMEs and provides some guidance as to what trade facilitation policy reforms might be prioritised.
    Keywords: exporting, importing, inclusive trade, SMEs, trade costs, trade facilitation
    JEL: D22 F13 F14 L11 L25
    Date: 2019–09–11
  8. By: Javier López González (OECD)
    Abstract: This paper provides a broad overview of some of the issues that digital trade raises for ASEAN countries and its MSMEs, including new opportunities that digitalisation presents for ASEAN firms to increase trade. However, it shows that adoption of relatively simple digital tools, such as webpages, remains relatively low, constraining the ability of ASEAN SMEs to engage in trade as exporters and importers. The paper argues that, to benefit from digital trade, policy makers need to consider issues related to accessing digital networks jointly with a range of old and new trade issues.
    Keywords: ASEAN, digital trade, SMEs, trade costs
    JEL: D22 F13 F14 L11
    Date: 2019–09–11

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.
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