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on Entrepreneurship |
| By: | Sumaya Islam (Paderborn University) |
| Abstract: | .Green start-ups are frequently portrayed as major drivers of the sustainable revolution, yet little is known about their true risk of insolvency. Using a population-wide register dataset of 30, 523 German startups, the failure rates of green and non-green startups are compared. While there is a theoretical argument that a commitment to sustainability provides legitimacy and access to patient capital, the empirical evidence is still scarce and dependent on the context and ecosystem. The results are striking. Using survival analysis, it is shown that green startups are significantly more likely to fail than non-green startups both in the short and long term. These time patterns are consistent: green startups are more likely to go into insolvency than non-green startups not only during the first years of life but also at later stages of firm development. This evidence challenges the existence of a green survival premium and suggests a liability of newness and greenness; that is, engaging in sustainability makes startups more unstable throughout their life cycle. Overall, these findings provide a more refined comprehension of sustainable entrepreneurship by highlighting the structural and persistent nature of the risks of failure of green startups. They also invite governments and investors to reconsider their policies of support and to develop long-term instruments that better match the specific risk profiles and capital needs of sustainability-oriented startups. |
| Keywords: | ... (keywords) |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:pdn:dispap:167 |
| By: | OKAMURO, Hiroyuki; NISHIMURA, Junichi |
| Abstract: | Place-based economic policies have attracted research attention. Previous studies have discussed the advantages of local governments due to the heterogeneity of local conditions and environment. In recent years, most Japanese cities have provided various types of startup support for various types of potential founders and startups for regional revitalization. However, no empirical studies have addressed local startup support by considering and comparing different types of startup support. Based on our original survey data of Japanese cities, we fill these gaps by estimating the effects of city-level startup support on local startup activities by comparing different support measures. Using a city-level panel dataset with seven periods over 20 years and panel fixed effect models, we find that both hard support (subsidies) and soft support (seminars) have positive and significant effects on the number of new establishments, whereas subsidies reduce the average size of new firms, suggesting a trade-off between policy goals. |
| Keywords: | startup, entrepreneurship, place-based policy, policy mix, city |
| JEL: | H71 L26 M13 R58 |
| Date: | 2026–03–24 |
| URL: | https://d.repec.org/n?u=RePEc:hit:hiasdp:hias-e-157 |
| By: | Gonzalo Basante Pereira; Ina Simonovska |
| Abstract: | We develop a framework to measure the severity of financial constraints for young firms across countries. Using ORBIS balance-sheet data for 23 economies, we show that short-term leverage rises while long-term leverage falls early in firms' life cycles, with this pattern persisting longer where contract enforcement is weaker. We build a model of optimal financing under limited enforcement with endogenous debt maturity and blueprint capacity that matches these patterns and enables structural measurement of financial constraints. The framework decomposes the funding gap into within-firm borrowing constraints that ease with repayment history and a scale distortion identifiable through cross-country comparisons. |
| Keywords: | contract enforcement, capital structure, debt maturity, young firms, cross-country financial frictions |
| JEL: | F34 F36 O16 E22 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12596 |
| By: | Benjamin Leroy; Davi Marim; El Ghali Benjelloun; Arthur Rozan Debeaurain; Jean-Michel Dalle |
| Abstract: | We explore a quantitative approach to emerging technological sovereignty and geoeconomic power by assessing the relative positioning of countries with economic complexity methods applied to the structure of national venture-capital (VC) portfolios and their associated Revealed Venture Advantage (RVA) metrics. Using Crunchbase firm- and deal-level data, we map venture-backed startups to 18 emerging technology domains via a probabilistic multi-label large-language-model classifier, and construct an RVA-based country-technology specialization matrix for the 17 countries with the highest aggregate VC funding. From this matrix, we derive two eigenvector-based measures: a Geoeconomic Complexity Index (GCI) that ranks countries by the composition of their venture specializations, and an Emerging Technology Geoeconomic Complexity Index (ETGCI) that ranks domains by the extent to which specialization is concentrated among high-GCI countries. Empirically, Cloud Computing, Cybersecurity Tools, and Medtech exhibit the highest ETGCI values, reflecting concentration of specialization in a small set of leading countries. The United States and Israel consistently occupy a marked "high-diversity/low-ubiquity" position and lead the GCI ranking, followed by China, France, Japan, and Germany; both country and domain rankings are stable from 2021-2024. Finally, relatedness-based simulations identify, when it exists, for each country the Simplest Single Sovereignty Enhancing Technology (SSSET), i.e., the most feasible single new technological direction associated with the largest expected improvement in relative geoeconomic positioning. |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2604.09187 |
| By: | NISHIMURA, Junichi; OKAMURO, Hiroyuki |
| Abstract: | With the progress of decentralization of policymaking since the 2000s, local innovation ecosystems have attracted worldwide attention. This study examines whether R&D support provided by diverse policy agents within a local ecosystem enhances firm innovation performance. We pay special attention to 1) a multilevel policy mix of national/prefectural and city governments, 2) a policy instrument mix of hard (financing) and soft (non-financing) support, and 3) a public-private partnership of governments and local supporters. Our estimation results based on an original firm-level survey show that R&D support from city governments, particularly soft support such as networking, advice and consultation, significantly contributes to firm innovation performance. Local supporters’ R&D support also positively impacts performance. We find significant complementarity between R&D support from city governments and local supporters. In contrast, national/prefectural R&D support shows no significant effects, and we observe no significant complementarity regarding multilevel or policy instrument mixes. We confirm that the qualitative findings from our interviews with local government officials and firms are consistent with our quantitative findings. |
| Keywords: | R&D support, place-based policy, policy mix, multilevel governance, innovation ecosystem, city |
| Date: | 2026–03–24 |
| URL: | https://d.repec.org/n?u=RePEc:hit:hiasdp:hias-e-159 |
| By: | Nuriye Melisa Bilgin; Gianmarco Ottaviano |
| Abstract: | We study how digital infrastructure relaxes constraints on the diffusion and economic impact of artificial intelligence (AI). Using administrative data and a nationally representative enterprise survey from Turkey (2021-2024), we document significant disparities in AI adoption. Adoption is concentrated among large firms and in regions with high-speed broadband and proximity to data centers, particularly for software-intensive and cloud-based applications. To identify causal effects, we exploit the staggered expansion of Turkey's national natural gas pipeline network, which serves as a conduit for fiber-optic deployment. Because pipeline routing is determined by energy distribution priorities rather than digital demand, it provides plausibly exogenous variation in connectivity. Difference-in-differences estimates show that improved connectivity significantly increases AI adoption, particularly for software-intensive technologies and among small and medium-sized enterprises. Instrumental-variable estimates indicate that infrastructure-driven AI adoption raises labor productivity and export intensity while shifting labor composition toward ICT-related roles. These findings highlight digital infrastructure as a primary determinant of both the pace of AI diffusion and its resulting economic returns. |
| Keywords: | artificial intelligence, digital infrastructure, broadband, technology diffusion, firm productivity, cloud computing |
| Date: | 2026–04–15 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2172 |
| By: | Fei, Yue; Hege, Ulrich; Jia, Xiao |
| Abstract: | We study how IPO reforms transmit to venture capital (VC) markets using the introduction of China’s entrepreneurial boards, ChiNext and the registration-based STAR. We document that both boards attract younger, higher-growth firms with weaker fundamentals in levels, but postIPO growth persists for ChiNext firms while decelerating sharply for STAR firms. VC backing plays different roles across regimes: on ChiNext it aligns with valuation premia and long-run outperformance, whereas on STAR it mainly predicts higher first-day returns. To identify causal effects on VC allocation, we construct novel text-based regulatory exposure measures from listing documents using keyword matching and Sentence-BERT semantic similarity, and show that VC financing reallocates toward firms more aligned with "supported" activities. |
| Keywords: | IPO Reforms; IPO Listing Requirements; Venture Capital; Business Description; BERT; China |
| JEL: | G24 G28 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:131666 |
| By: | Elvis Korku Avenyo (South African Research Chair in Industrial Development, University of Johannesburg); Danilo Spinola (College of Accounting, Finance and Economics, Researcher at UNU-Merit.); Fiona Tregenna (South African Research Chair in Industrial Development, University of Johannesburg) |
| Abstract: | This paper examines the firm-level effects of Chinese manufacturing import penetration on the performance of manufacturing firms in Belt and Road Initiative (BRI) countries. We construct a dataset of 59 BRI member countries by combining firm-level data from the World Bank's Enterprise Survey with industry-level data from the United Nations Commodity Trade (Comtrade) database from 2011 to 2020. Employing a multi-level modelling approach, our findings reveal that Chinese manufacturing imports exert a considerable adverse effect on productivity growth and employment, and a robust and significant positive effect on the export capabilities of manufacturing firms. The adverse effects on performance are significantly moderated by firms that pursue innovation and engage in foreign licensing. These findings are significant in middle-income countries and small and medium-sized enterprises (SMEs) within BRI countries. Based on these findings, we argue that the importation of manufactured goods from China results in a crowding-out effect on the productive capacities of firms within the Belt and Road Initiative (BRI) countries on the one hand and a catalytic effect on the internationalisation of firms on the other hand. These dual outcomes may underscore China's global value chains (GVCs) position-seeking strategy. |
| Keywords: | Chinese manufacturing import penetration; Multi-level modelling; Firm-level effects; Belt and Road Initiative. |
| JEL: | F14 F15 F61 O14 P33 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:adz:wpaper:2024-06 |
| By: | Benzarti, Youssef; Harju, Jarkko; Matikka, Tuomas; Mattinen, Ella; Tazhitdinova, Alisa |
| Abstract: | This paper studies social insurance contribution choices, adverse selection, and moral hazard among Finnish entrepreneurs. We exploit quasi-exogenous variation from a reform that relaxed mandatory contribution requirements for a subset of entrepreneurs, combining administrative registry data with linked survey evidence. Entrepreneurs who gained discretion reduced their contributions by 16%, on average, relative to entrepreneurs subject to a strict mandate. Using this variation, causal tests of anticipatory responses and moral hazard as well as positive correlation tests, we show that moral hazard and adverse selection effects are near zero in this market. Survey responses help illuminate the mechanisms underlying these results. |
| Keywords: | entrepreneurs, social insurance, moral hazard, adverse selection, H55, J32, L26, fi=Sosiaaliturva|sv=Social trygghet|en=Social security|, |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:fer:wpaper:185 |
| By: | Kishimoto, Chikashi |
| Abstract: | 本研究は，台湾の代表的ベンチャーキャピタル（VC）投資会社の1つである「中華開發資本（CDIB Capital Group）」の事例分析を行い，それ を通して近年の台湾VC業の転換に向けた取り組みを具体的に描き出すことを目的としている。中華開發資本は，その前身企業も含めると，1959年以降，60年 余りにおよんで，台湾のその時々の主要産業に投資してきた実績がある。2017年以降，ウェブやソフトウェア等のニューエコノミー分野のスタートアップへの投 資が本格化した。投資戦略もかつて半導体産業のような従来型ハイテク産業では「産業チェーン投資」が行われてきたが，ニューエコノミー分野の投資では「エコシ ステム投資」へと変化した。それに合わせ，新たなファンドが設立され，またスタートアップ支援のための「中華開發創新アクセラレーター（CCIA）」が開設さ れた（2017 年）。これにより，スタートアップ・コミュニティ，および大企業やメンター等のパートナーを巻き込んだ創業エコシステムを構築しようとしてい るのである。さらに近年，日本との連携を積極的に推進している。そのために，東京拠点（CDIB Tokyo Innovation Hub）を開設し（2023年），また台日連携推進のためのファンド（CDIB Cross Border Innovation Fund）を設立した（2024 年）。これにより，台湾スタートアップの日本市場開拓を助け，さらに，台日スタートアップ間およびスタートアップと大企業と の連携を促進しようとしている。目標は，国境を越えた台日スタートアップ・コミュニテ ィの形成，さらに将来的にはこれを東南アジアまで拡大することである。 |
| Keywords: | Taiwan, Venture Capital, CDIB Capital Group, Ecosystem Investment, CDIB Capital Innovation Accelerator (CCIA), CDIB Tokyo Innovation Hub, CDIB Cross Border Innovation Fund (CCBI), TaiwanJapan Startup Community |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:agi:wpaper:02000269 |