nep-sbm New Economics Papers
on Small Business Management
Issue of 2010‒06‒11
seven papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Entrepreneurship and the National System of Innovation: What is Missing in Turkey? By Bascavusoglu-Moreau, Elif
  2. Does the institution of State Business Relations matter for Firm Performance? – A study of Indian Manufacturing By Kathuria, Vinish; Natarajan, Rajesh Raj; Sen, Kunal
  3. The Allocation of Entrepreneurial Talent and Destructive Entrepreneurship By Sanders, Mark; Weitzel, Utz
  4. University Education, Public Research and Employment Growth in Regions – An Empirical Study of Germany By Thomas Brenner; Charlotte Schlump
  5. Innovation and Productivity: a Firm Level Study of Ukrainian Manufacturing Sector By Ganna Vakhitova; Tetyana Pavlenko
  6. Why are good comparative studies of networks so rare? Practical lessons from a study on French clusters By Thierry Weil; Anna Glaser; Emilie-Pauline Gallié; Valérie Mérindol; Philippe Lefebvre; Frédérique Pallez
  7. The global start ups from Indian IT By Varma, Sumati

  1. By: Bascavusoglu-Moreau, Elif
    Abstract: Although very dynamic and flexible, Turkish SMEs are less innovative than their European counterparts. The analysis undertaken in this paper allows to assess whether this low level of innovative activities is related to a lack of entrepreneurial behaviour
    Keywords: entrepreneurship, national systems of innovation, SMEs, innovative capabilities,
    Date: 2010
  2. By: Kathuria, Vinish; Natarajan, Rajesh Raj; Sen, Kunal
    Abstract: This paper examines the role of the external institutional environment captured by effective state-business relations on firm performance. By effective state-business relations, we mean a set of highly institutionalized, responsive and public interactions between the state and the business sector. We find that effective state-business relations have had a discernible positive impact on firm performance in Indian formal manufacturing for the years 2000-01 and 2004-05. We also find internal and external institutional factors are complementary to firm performance - smaller firms, firms in urban areas, older firms and firms in simpler organizational forms benefit more.
    Keywords: State business relations; firm productivity; manufacturing sector; India
    JEL: L25 O43 O53
    Date: 2010–06–03
  3. By: Sanders, Mark; Weitzel, Utz
    Abstract: Entrepreneurship is generally regarded as a force of change, innovation, and development in modern economies. Entrepreneurs bring new and better products to markets, restore allocative efficiency through arbitrage and reinvest their profits. However,
    Keywords: destructive entrepreneurship, allocation of talent, development, institutions
    Date: 2010
  4. By: Thomas Brenner (Department of Geography, Philipps University Marburg); Charlotte Schlump (Department of Geography, Philipps University Marburg)
    Abstract: Universities and research institutes are seen as important drivers of the regional economy. Their impact on regional entrepreneurial and innovation activity is well documented. On the other hand, their influence on regional employment growth is less researched. This paper provides an extensive empirical analysis of the relationship between the education of university graduates and employees in research institutes and the growth of employment in a region. The analysis is done for nine industries separately. We find that university graduates have a significant influence on employment growth in several industries, while an influence of public research institutes is found only for a few industries. For most control variables the findings differ between manufacturing and service industries. Such a clear difference between the two types of industries is not found for university graduates and public research institutes.
    Keywords: Universities, Research Institutes, Regional Employment Growth
    JEL: H52 I2 J20
    Date: 2010–05
  5. By: Ganna Vakhitova (Kyiv School of Economics, Kyiv Economic Institute); Tetyana Pavlenko (Kyiv School of Economics)
    Abstract: TThere is a large literature on innovation contribution to productivity for EU countries including CEE states. At the same time very little is known about CIS countries. We apply the same framework and select the same period (2004-2006) to make our study comparable. The modified CDM model considers not only companies that report formal innovation expenditures but the entire sample of manufacturing firms. This approach accounts for underreporting of innovative firm’s efforts, especially among small firms. Additionally, we allow dynamic two-direction relationship between productivity and innovation input and test “success breeds success” hypothesis. Our major attention is given to the impact of the government support on firm’s R&D expenditures, innovations and productivity. The results show that government financial support has positive effect on the probability and amount of firm’s innovation expenditures but not on the probability of innovation itself, neither for process nor for product innovation. The latter finding emphasizes that only the effective government innovation policy may actual positively contribute to the productivity after all. We found that both parts of the "success breeds success" hypothesis work. Firms which have introduced new or significantly improved product in the past are more likely to invest into R&D and to come up with a product innovator in the future. Our results also suggest that amount of innovation expenditures in the following period is influenced by firm’s productivity in the previous period. Empirical evidence of this is quite rare in the literature. Finally, similar to Estonia during late transition only process innovation has been found to contribute to productivity of Ukrainian firms.
    Keywords: R&D, innovation, productivity, "success breeds success", transition, Ukraine
    JEL: C33 D24 F14 O31 O33 O47 L60
    Date: 2010–06
  6. By: Thierry Weil (CERNA - Centre d'économie industrielle - Mines ParisTech); Anna Glaser (CERNA - Centre d'économie industrielle - Mines ParisTech); Emilie-Pauline Gallié (IMRI, Université Paris Dauphine - Institut pour le management de la recherche et de l'innovation - Université Paris Dauphine - Paris IX); Valérie Mérindol (IMRI - Université Paris Dauphine - Paris IX); Philippe Lefebvre (CGS - Centre de Gestion Scientifique - Mines ParisTech); Frédérique Pallez (CGS - Centre de Gestion Scientifique - Mines ParisTech)
    Abstract: French “competitiveness clusters” were set up in 2005 to strengthen cooperation between small and large enterprises, and training and research institutions working on similar topics and located in the same geographical area, with the aim of making this area more competitive and attractive through enhanced innovation. Our analysis of this set of about 70 apparently similar networks, on which much data were collected, has given us an opportunity to investigate the factors explaining the differences in their performance.
    Keywords: Clusters, networks, network performance, context, innovation policy
    Date: 2010
  7. By: Varma, Sumati
    Abstract: This paper examines the phenomenon of accelerated internationalization of firms from the Indian IT industry. It examines the emergence of the Born Global firm in the Indian context with a specific focus on firms which made an acquisition within five years of incorporation. It specifically addresses the issue of initiating factors which contribute to the emergence of the Born Global Acquirer using constructs from the Resource based view (RBV) and institutional theory.
    Keywords: Born Global Firms; international new ventures; Indian IT
    JEL: F23 F2 L8 L26 L86
    Date: 2009–12–17

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