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on Entrepreneurship |
| By: | Michael Fritsch; Michael Wyrwich |
| Abstract: | We review and discuss research on the development of regional entrepreneurship over time. A particular focus is on the long-term persistence of regional levels of entrepreneurship, its explanation, and its meaning for economic development. What is the state of empirical research in this field, and what can explain the empirical findings? How are long-term trends of entrepreneurial activity linked to regional performance in terms of employment, gross domestic product (GDP), and innovative activity? Based on our assessments we derive conclusions for theory, policy implications, and avenues for further research. |
| Keywords: | Entrepreneurship, self-employment, regional growth, entrepreneurial culture, historical analysis |
| JEL: | L26 M13 O1 O33 R11 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2215&r= |
| By: | Nilsen, Øivind A. (Dept. of Economics, Norwegian School of Economics and Business Administration); Raknerud, Arvid (SSB) |
| Abstract: | This paper investigates firm dynamics in the period before, during, and after an event consisting of a first published patent application. The analysis is based on patent data from the Norwegian Industrial Property Office merged with data from several business registers covering a period of almost 20 years. We apply an event study design and use matching to control for confounding factors. The first patent application by a young firm is associated with significant growth in employment, output, assets and public research funding. Moreover, our results indicate that economic activity starts to increase at least three years ahead of the first patent application. However, we find no evidence of additional firm growth after patent approval for successful applicants. Our findings indicate that the existence of a properly functioning patenting system supports innovation activities, especially early in the life cycle of firms. |
| Keywords: | Patenting; Firm performance; Panel data; Event study design |
| JEL: | C33 D22 O34 |
| Date: | 2022–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2022_011&r= |
| By: | Enisse Kharroubi |
| Abstract: | How do aggregate conditions affect the dynamics of firm entry? Do recessions force more firms out, allowing for more firms to enter subsequently? Or does this process require other circumstances to thrive? I look into these questions using sectoral data on firm entry and exit for the main economies of the Euro Area over 2009-2019. My main finding is that expected, rather than current, GDP growth shapes the dynamics of firm entry. Specifically, I find that entry increases with past exits at the sector-level, but only when aggregate GDP growth is forecasted to be strong. Also, with strong growth forecasts, past entry developments weight less on the subsequent sectoral entry dynamics. Periods of low entry and high exit, can therefore be followed by strong entry subsequently, when the economy is expected to grow strongly. These findings are robust to the inclusion of several controls. This includes the quality of insolvency proceedings, firms' ability to obtain credit or the presence of barriers to entry. Finally, I show that expectations of private and public investment drive the impact of growth expectations on the dynamics of firm entry. |
| Keywords: | firm entry, exit, growth expectations, private and public investment |
| JEL: | D25 D84 E32 E62 H32 M13 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1036&r= |
| By: | Julian Kolev; Alexis Haughey; Fiona Murray; Scott Stern |
| Abstract: | What is the role of startups within the innovation ecosystem? Since 2000, startups have grown in their share of commercializing research from top U.S. universities; however, prior work has little to say on the particular advantages of startup ventures in the innovation process relative to more traditional alternatives such as academia and established private-sector incumbents. We develop a simple model of startup advantage based on private information held by the initial inventor, and generate predictions related to the value and impact of startup innovation. We then explore these predictions using patents granted within the regional ecosystems of top-25 research universities from 2000 to 2015. Our results show a significant startup advantage in terms of forward citations and outlier-patent rates. Further, startup innovation is both more original and more general than innovation by incumbent firms. Moreover, startups that survive to become “scale-ups” quickly grow to dominate their regional innovation ecosystems. Our findings have important implications for innovation policy. |
| JEL: | L24 L26 M13 O31 O32 O34 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30362&r= |
| By: | Otrachshenko, Vladimir; Popova, Olga; Nikolova, Milena; Tyurina, Elena |
| Abstract: | We theoretically and empirically examine how acquiring new skills and increased financial worries influenced entrepreneurship entry and exit intentions during the pandemic. To that end, we analyze primary survey data we collected in the aftermath of the COVID-19's first wave in Russia, which has had one of the highest COVID-19 infection rates globally. Our results show that acquiring new skills during the pandemic helps maintain an existing business and encourages start-ups in sectors other than information technology (IT). For IT start-ups, having previous experience matters more than new skills. While the pandemic-driven financial worries are associated with business closure intentions, they also inspire new business start-ups, highlighting the creative destruction power of the pandemic. Furthermore, preferences for formal employment and remote work also matter for entrepreneurial intentions. Our findings enhance the understanding of entrepreneurship formation and closure in a time of adversity and suggest that implementing entrepreneurship training and upskilling policies during the pandemic can be an important policy tool for innovative small business development. |
| Keywords: | business entry,information technology (IT),business closure,COVID-19,entrepreneurship intentions,self-employment,Russia |
| JEL: | E24 J24 L26 P20 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1153&r= |
| By: | Pierluigi Murro (LUISS University); Valentina Peruzzi (Sapienza University of Rome) |
| Abstract: | We investigate whether credit constraints affect firms' reliance on open innovation strategies. Using data on 7,000 Italian small and medium-sized enterprises, we find that credit restricted firms are 26\% more likely to collaborate for innovation than firms not suffering from credit constraints. This result is confirmed both for product and process innovators. However, when accounting for the intensity of the product innovation, we find a negative impact of credit rationing on open innovation for firms introducing completely new products in the market. This confirms the relevance of opportunity costs in the choice between internal and open innovation in presence of credit restrictions. We also look at the role played by innovation partners. In particular, we show that the existence of credit constraints positively affects the probability of firms innovating with their suppliers. Finally, we provide evidence that the impact of credit frictions on innovation collaborations varies with the innovation environment and with the socio-economic conditions of the province where firms are located. |
| Keywords: | credit constraints; open innovation; product innovation; process innovation |
| JEL: | O36 G32 D22 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:lui:casmef:2201&r= |
| By: | Kay, Rosemarie; Kranzusch, Peter; Nielen, Sebastian; Suprinovič, Olga |
| Abstract: | Die vorliegende Studie untersucht Merkmale erfolgreicher regionaler Gründungsökosysteme. Berücksichtigt werden sowohl gewerbliche als auch freiberufliche Existenzgründungen im Zeitraum 2017 bis 2019. Als regionale Einheit werden die (401) Kreise und kreisfreien Städte in Deutschland betrachtet. Eine gute Verkehrs- und Telekommunikationsinfrastruktur, eine hohe Bevölkerungsdichte und eine gute Ausstattung mit sozialen Ressourcen erweisen sich als prägende Merkmale eines Gründungsökosystems mit hoher Gründungsneigung in der Bevölkerung. Sie sind meist, aber nicht nur in den städtisch geprägten Regionen vorzufinden. In mindestens 11 ländlich geprägten Regionen ist die Gründungsneigung überdurchschnittlich hoch. |
| Keywords: | Gründungsökosystem,Regionales Gründungsgeschehen,Deutschland,Entrepreneurial ecosystem,Regional start-up activity,Germany |
| JEL: | L26 O10 R11 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmduf:31&r= |