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on Small Business Management |
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Issue of 2010‒08‒28
eight papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Dirk Fornahl; Tom Broekel; Ron Boschma |
| Abstract: | This paper aims to explain whether firm-specific features, their engagement in collaboration networks and their location influence patent activity of biotech firms in Germany in the period 1997-2004. First, we demonstrate that non-collaborative R&D subsidies do not increase patent intensity of biotech firms. Second, the number of knowledge links biotech firms is also not influencing their patent performance. However, strong and robust evidence is found that some but not too much cognitive distance between actors involved in R&D collaborations increases patent performance of firms. Third, being located in a biotech cluster does positively impact on patent performance. |
| Keywords: | relatedness, R&D subsidies, biotechnology, knowledge networks, proximity paradox |
| JEL: | O33 O38 R58 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1009&r=sbm |
| By: | Valentina De Marchi (Università di Padova) |
| Abstract: | This paper explores the relationship between firms’ cooperation and their propensity toward environmental innovation. Previous literature has emphasized the peculiarities of such innovations based on their drivers, their positive spill-overs and the importance of regulation to trigger them. This paper contributes to the literature by focusing on the importance of cooperation and of vertical, horizontal and lateral cooperative agreements on environmental innovation propensity. I test these hypotheses through a large scale dataset, the Community Innovation Survey for Spanish firms (PITEC), through the use of estimation techniques that allow to control for possible selection bias. The econometric estimations suggest that environmental innovative firms cooperate on innovation to an higher extent than other innovative firms. Furthermore, cooperation with suppliers, KIBS and universities is more relevant than for other innovative firms, whereas cooperation with clients does not seem to be differentially important. |
| Keywords: | environmental innovation, cooperation, R&D, two step logit model, innovation survey. |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0119&r=sbm |
| By: | John Haltiwanger; Ron S. Jarmin; Javier Miranda |
| Abstract: | There’s been a long, sometimes heated, debate on the role of firm size in employment growth. Despite skepticism in the academic community, the notion that growth is negatively related to firm size remains appealing to policymakers and small business advocates. The widespread and repeated claim from this community is that most new jobs are created by small businesses. Using data from the Census Bureau Business Dynamics Statistics and Longitudinal Business Database, we explore the many issues regarding the role of firm size and growth that have been at the core of this ongoing debate (such as the role of regression to the mean). We find that the relationship between firm size and employment growth is sensitive to these issues. However, our main finding is that once we control for firm age there is no systematic relationship between firm size and growth. Our findings highlight the important role of business startups and young businesses in U.S. job creation. Business startups contribute substantially to both gross and net job creation. In addition, we find an “up or out” dynamic of young firms. These findings imply that it is critical to control for and understand the role of firm age in explaining U.S. job creation. |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:10-17&r=sbm |
| By: | Valeria Arza; Andres Lopez |
| Abstract: | This paper adapts the Crepon, Duguet, and Mairesse (1998) approach to estimate the relationship between innovation and productivity and the realities of innovative activities in developing countries. Panel data for Argentina during the period 1998-2004 to estimate a structural model in which different types of firms’ innovative behavior—including in-house activities and the incorporation of external technologies—feeds into the probability of achieving successful results in product and process innovation, which in turn explains labor productivity. The endogeneity of this three-stage process is controlled for. The results suggest that all types of innovative activities are relevant to explain success in product and process innovation, and both are important factors to explain labor productivity. Moreover, investing systematically in R&D implies an extra payoff in labor productivity. These results suggest that investing in different types of innovative activities—and not only in R&D—and doing in-house activities systematically contribute to firms’ innovative and economic performance. |
| Keywords: | Innovation, Productivity, Argentina |
| JEL: | O33 O14 O12 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:idb:wpaper:4681&r=sbm |
| By: | R. Antonietti; G. Cainelli |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:bol:prinwp:014&r=sbm |
| By: | Narayana, M. R. |
| Abstract: | This paper aims at economic analysis of economic globalization and urban growth of Bangalore, the Silicon Valley of India, as they are related to ICT sector. Overall analyses offer new insights and evidences for ICT sector as a major contributor for degree of economic globalization and urban economic growth, mainly driven by ICT services. Bangalore’s performance is remarkable compared to all-India level and OECD averages. These results offer empirical justification for continuing with and strengthening of public policies for promotion of globalizing and growth-oriented ICT sector in Bangalore with implications for comparable Indian and Asian cities. |
| Keywords: | globalization, ICT sector, urbanization, urban economic growth, Bangalore |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-80&r=sbm |
| By: | Lambais, Guilherme B. R. |
| Abstract: | The objective of this paper is to analyze a set of technology-based enterprises connected to incubators and the University of Campinas, both located in the Metropolitan Region of Campinas, Brazil. We call these, respectively, “induced” and “spontaneous” companies. A survey was conducted directly with the companies and reveled an answer rate of 31% for our population connected to incubators and 24% for those connected with the university. We propose a discussion of firm’s endogenous and exogenous characteristics, as well as their relations with the geographic space. Our main conclusions are as follows: 1) the space emerges as fundamental in the creation and development of technology-based endeavors, 2) both groups of companies do not differ substantially in successful growth potential, 3) differences emerge with the level of integration with the university and network access, and 4) their main limitation is connected with financing access. |
| Keywords: | Regional and urban economics; New economic geography; Technology-based enterprises; Metropolitan Region of Campinas; Technopolis |
| JEL: | L20 R00 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24449&r=sbm |
| By: | Kenneth L. Sørensen; Rune M. Vejlin (School of Economics and Management, Aarhus University, Denmark) |
| Abstract: | This paper estimates a wage growth equation containing human capital variables known from the traditional Mincerian wage equation with year, worker and firm fixed effects included as well. The paper thus contributes further to the large empirical literature on unobserved heterogeneity following the work of Abowd, Kramarz, and Margolis (1999). Our main contribution is to extend the analysis from wage levels to wage growth. The specification enables us to estimate the individual specific and firm specific fixed effects and their degree of explanation on wage growth. The analysis is conducted using Danish longitudinal matched employer-employee data from 1980 to 2006. We find that the worker fixed effect dominates both the firm fixed effect and the effect of the observed covariates. Worker effects are estimated to explain seven to twelve per cent of the variance in wage growth while firm effects are estimated to explain four to ten per cent. We furthermore find a negative correlation between the worker and firm effects, as do nearly all authors examining wage level equations. |
| Keywords: | MEE data, fixed effects, wage growth |
| JEL: | J21 J31 |
| Date: | 2010–08–27 |
| URL: | http://d.repec.org/n?u=RePEc:aah:aarhec:2010-13&r=sbm |