|
on Entrepreneurship |
| By: | Xu, Tao Louie; Zhu, Weiwei |
| Abstract: | This research identifies the causality between entrepreneurial behaviour and informal institutions of social trust within the context of China’s development. Revisiting the Polanyi-Schumpeter theoretical framework, entrepreneurship embedded in social relations interlinked by trust is a dynamo of sustainable socioeconomic progress. The institutionalised trust, however, was not clarified. With micro-individual data from the Chinese General Social Survey 2011–2021, our research employs the instrumental variable approach rooted in historical rice farming to tackle endogeneity. The results demonstrate that social trust elevates entrepreneurial engagement by 32.65 and 10.37 percentage points in self-employment and business incorporation, respectively. Increased trust paradoxically hampers self-employment in the central due to insular networks and structural disparities. The findings uncover the nuanced role of social trust in facilitating and constraining entrepreneurship with contextually regional determinants. The research contributes to knowledge and evidence of institutional endowments that mediate entrepreneurial agency and argues for synchronising formal and informal institutions in development. |
| Date: | 2025–03–10 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nka6s_v3 |
| By: | Tan , Yeng-May (Xiamen University Malaysia); Amorós , José Ernesto (EGADE Business School, Tecnológico de Monterrey); Autio , Erkko (Imperial College London); Fu , Kun (Loughborough University); Park, Donghyun (Asian Development Bank) |
| Abstract: | This study explores the relationship between digitalization and entrepreneurial innovation across developing economies. We assess whether higher levels of digital technology development within a country enhance the innovation potential of its entrepreneurial ventures and how this impact varies between Asia and other regions. Using data from the Global Entrepreneurship Monitor (2013–2022) and the Global Innovation Index along with its subindexes, we examine 11 developing economies in Asia and 57 developing economies in other regions. We find that digital technology development generally boosts entrepreneurial innovation. However, our results reveal a significant regional variation. The impact on product innovation is significantly stronger in developing economies outside Asia. This suggests that while digitalization supports innovation generally, its effects may be more transformative in regions outside Asia. These findings offer valuable insights for policymakers seeking to leverage digitalization to drive innovation and economic growth. |
| Keywords: | digitalization; digital technologies; entrepreneurial innovation; ICT development; developing Asia; developing economies |
| JEL: | L26 O31 O33 O57 |
| Date: | 2025–04–28 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0776 |
| By: | Czarnitzki Dirk; Confraria Hugo (European Commission - JRC) |
| Abstract: | It has been a long-standing debate whether Europe suffers from an innovation gap. Recent studies indicate a global decline in research and development (R&D) productivity across various sectors, raising concerns about the efficiency of innovation investments. New panel data from the EU Industrial R&D Investment Scoreboard allow examining long-term relationships between firm productivity and R&D. The results show that EU top R&D investors struggle more than their global counterparts to convert their R&D into new ideas and marketable products. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc141091 |
| By: | Ohki, Kazuyoshi |
| Abstract: | In this paper, we construct a tractable endogenous growth model that incorporates both incremental innovation by heterogeneous incumbents and innovation by entrants. Our model features two endogenous sources of growth: quality improvement (vertical growth) and expansion in the variety of goods (horizontal growth). We then examine the policy effects of a subsidy for incremental innovation by incumbents and a subsidy for innovation by entrants on the overall economic growth rate, as well as on the relationship between the two sources of growth. Our model confirms that incumbents with higher profit flows tend to engage in incremental innovation for a longer duration and incur greater innovation costs, which is consistent with both Schumpeter's hypothesis and the findings of Christensen (1997) Additionally, the model generates counterintuitive results that are not commonly found in the conventional literature. First, a subsidy for incremental innovation by incumbents may reduce the entry of new firms. Second, a subsidy for innovation by entrants may have a negative effect on the overall economic growth rate. |
| Keywords: | Economic Growth, \&D, In-house model, Firm-Heterogeneity, Innovation by Incumbents, IPR policy, Incremental Innovation, Sustaining Innovation |
| JEL: | O31 O32 O33 O34 O41 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124304 |
| By: | Clement Joubert; Kathleen G. Beegle |
| Abstract: | Although microenterprises are the most prevalent employer in Africa, boosting their productivity remains a development challenge. Theoretically, microenterprise business associations could foster technology, improve access to inputs, pool risk, ensure coordination, and facilitate credit for businesses. However, basic facts about their scope and roles are missing from the literature. This study establishes descriptive results to shed light on the nature of these networks in West Africa. First, fewer than 10 percent of informal business owners are members, although there is large industry variation. Second, members tend to be older and larger incumbent businesses with male owners, potentially stifling competition and entrenching gender gaps. Third, most associations are more aptly described as providers of excludable, industry-specific services than as vehicles for collective action and advocacy. Fourth, membership helps explain performance differences among observably similar businesses. Members are more productive, profitable, and financially included relative to similar non-members, although such premia only materialize in a few industries. |
| Date: | 2025–04–14 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11101 |
| By: | Aimaq, Hasina; Rasa, Mohammad Mirwais; Islam, InamUl |
| Abstract: | The purpose of this study is to explore determinants of innovation in female-owned small and medium enterprises in Kabul city, Afghanistan, and in turn contribute to entrepreneurship-related literature mainly in developing countries. The study employed an explanatory research design with agreement of primary data collection via a cross-sectional survey questionnaire, followed by OLS linear regression as a quantitative research approach. The sample of this study was 303 women entrepreneurs and was selected using a random sampling technique. Being mindful of such importance of innovation, this study inferred that knowledge improvement and transfer, technology, and owner-manager qualification behaviour significantly influence the innovation performance and as such regarded as the strong determinants of innovation. The study didn’t account for the determinants like level of education, previous working experience, age, and profitability of the enterprise. Thus, due to frequent changes in such variables, the study may not reflect the dynamics of the data, which would have a convincing influence on the conclusion. In addition, the research has only consisted of 303 samples. Moreover, such a number may not represent the whole population of the entrepreneurs of women-led Afghan SME. The study might help women entrepreneurs in addressing the factors affecting innovation level to take actions towards improving their innovative behaviour and, in turn, contribute to job creation, wealth, and poverty alleviation. |
| Keywords: | SMES, Afghanistan, International Trade, Innovation, Trade Dynamics |
| JEL: | F1 F12 F18 F4 F41 |
| Date: | 2024–11–14 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124567 |
| By: | Andre Diegmann (Halle Institute for Economic Research); Laura Pohlan (Institute for Employment Research (IAB)); Andrea Weber (Central European University) |
| Abstract: | We study how connections to German federal parliamentarians affect firm dynamics by constructing a novel dataset linking politicians and election candidates to the universe of firms. To identify the causal effect of access to political power, we exploit (i) new appointments to the company leadership team and (ii) discontinuities around the marginal seat of party election lists. Our results reveal that connections lead to reductions in firm exits, gradual increases in employment growth without improvements in productivity. Adding information on credit ratings, subsidies and procurement contracts allows us to distinguish between mechanisms driving the effects over the politician’s career. |
| Keywords: | Politicians, Firm Performance, Identification, Political Connections |
| JEL: | O43 L25 D72 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:2506 |
| By: | Giulia Canzian; Elena Crivellaro; Tomaso Duso; Antonella Rita Ferrara; Alessandro Sasso; Stefano Verzillo |
| Abstract: | The Covid-19 pandemic caused a global economic crisis, leading governments to provide substantial State Aid to support firms. This paper examines the effectiveness of Covid-related financial support in Spain and Italy, focusing on its impact on firm recovery. Using a difference-in-differences (DiD) approach combined with propensity score weighting, it compares outcomes of similar firms receiving aid to those without. The results show significant benefits for micro-firms, including mitigated turnover declines and increased investments in both tangible and intangible assets. The findings highlight the critical role of government support in business survival and recovery, especially for SMEs, during the pandemic. . |
| Keywords: | State aid, aid effectiveness, temporary framework, Covid, firm growth, investment, difference-in-differences |
| JEL: | D04 D22 L25 L52 P43 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:diw:diwwpp:dp2116 |
| By: | Lucie Bouchet (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université); Benoît Journé (Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université, LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université) |
| Keywords: | Multiple jobholding, moonlighting, pluriactivity, multiactivity, Hybrid entrepreneurship, Pluriactivité, Cumul d'activités, Entrepreneuriat hybride |
| Date: | 2024–07–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05015430 |