nep-sbm New Economics Papers
on Small Business Management
Issue of 2011‒01‒30
seven papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Regional heterogeneity and firms’ innovation: the role of regional factors in industrial R&D in India By Pradhan, Jaya Prakash
  2. The micro processes underlying small firms'integration into territorial innovation dynamics - a knowledge based perspective By Rani Jeanne Dang; Christian Longhi; Catherine Thomas
  3. The job creation effect of R&D expenditures By Francesco Bogliacino; Marco Vivarelli
  4. The Effects of the Internationalisation of Firms on Innovation and Productivity By Siedschlag, Iulia; Zhang, Xiaoheng; Cahill, Brian
  5. The use of intellectual property rights by French firms. By Gallié, Emilie-Pauline; Legros, Diego
  6. Perception des obstacles aux activités d'innovation dans les entreprises tunisiennes By Rahmouni, Mohieddine
  7. Productivity spillovers and regional differences: some evidence on the italian manufacturing sector By IMBRIANI, Cesare; REGANATI, Filippo

  1. By: Pradhan, Jaya Prakash
    Abstract: This study makes an early attempt to estimate the magnitude and intensity of manufacturing firms’ R&D by Indian states during the period 1991‒2008 and analyses the role of regional factors on firm-level R&D activities. As there is little research on state-wise R&D performance of firms in India, this study serves an important contribution to the academic and policy realm. It has brought out the fact the total manufacturing R&D investment in India is unevenly distributed regionally with a few states accounting for disproportionate share of it. Regional heterogeneity or inter-state disparities in R&D has increased between the 1990s and the first decade of the twenty-first century. In view of this persistent regional heterogeneity in R&D, the study has developed and estimated an empirical model for a sample of 4545 Indian manufacturing firms with R&D facilities located in single state and that explicitly includes regional factors as probable factors affecting R&D. The three-step Censored Quantitle Regression results confirm that regional factors play an important role in shaping the R&D intensity of the sample of firms. This led us to some useful policy suggestions for regional governments to promote local firms’ R&D activities.
    Keywords: Regional heterogeneity; R&D; manufacturing firms; Indian states; censored quantitle regression.
    JEL: O18 O30 O32 C21 L60
    Date: 2011–01–12
  2. By: Rani Jeanne Dang (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Christian Longhi (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Catherine Thomas (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis)
    Abstract: The paper is concerned with the process of SMEs' insertion into innovation projects within regional clusters. The objective is to contribute to a better understanding of this process by examining the underlying mechanisms of territorial innovation dynamics. A particular attention is given to the interplay between the features of territorial dynamics of innovation identified, and SMEs' capacity to participate to collaborative innovation projects. In this perspective, the article analyse the front-end process of territorial inter-organizational innovation, the early stage during which partners negotiate and establish collaborative innovation projects. Rather than investigating how clusters facilitate the access to new resources and knowledge, the crucial question here is how clusters allow the combination of different component of knowledge among heterogeneous actors. First, our findings reveal the key underlying role of architectural knowledge in local innovation processes. Second, they suggest that the nature of architectural knowledge inside the cluster influences the capacity and the motivation of SMEs to participate to local innovation projects. These findings contribute to theory by developing a grounded model of territorial dynamics of innovation and of SMEs integration into localised innovation projects
    Keywords: clusters; SMEs; architectural innovation; knowledge; local innovation projects
    Date: 2010–06–28
  3. By: Francesco Bogliacino (European Commission, JRC-IPTS); Marco Vivarelli (Università Cattolica)
    Abstract: In this study we use a unique database covering 25 manufacturing and service sectors for 16 European countries over the period 1996-2005, for a total of 2,295 observations, and apply GMM-SYS panel estimations of a demand-for-labour equation augmented with technology. We find that R&D expenditures have a job-creating effect, in accordance with the previous theoretical and empirical literature discussed in the paper. Interestingly enough, the labour-friendly nature of R&D emerges in both the flow and the stock specifications. These findings provide further justification for the European Lisbon-Barcelona targets.
    Keywords: Technological change, corporate R&D, employment, product innovation, GMMSYS
    JEL: O33
    Date: 2010
  4. By: Siedschlag, Iulia; Zhang, Xiaoheng; Cahill, Brian
    Abstract: This paper examines the effects of the internationalisation of firms via foreign direct investment and trade on their innovation and productivity performance. Our econometric results suggest that foreign affiliates and domestic exporters were more likely to invest in innovation and furthermore that they were more likely to be more successful in terms of innovation output and higher productivity than firms that served only the domestic market. On average, innovation output was positively associated with labour productivity over and above other determinants. Access to external knowledge flows explain to a large extent the innovation performance of firms, in particular co-operation with suppliers, with consultants, commercial labs or private R&D institutes, with universities or other higher education institutions.
    Keywords: Productivity/Foreign direct investment/investment/exporters/education
    Date: 2010–12
  5. By: Gallié, Emilie-Pauline; Legros, Diego
    Abstract: In attempting to appropriate their innovations, firms can choose from a range of mechanisms, including patents, trade secrets and lead-times. Yet, little is known about how firms choose different appropriability mechanisms. The aim of this paper is to determine how the use of intellectual property rights(IPs)by French firms is related to their characteristics, activities, competitive strategies and the industry sector in which they operate. Among their characteristics, we test the role of the human resource strategies in keeping employees. Our empirical model is based on the French 2004 Community Innovation Survey(CIS). Our results show that firms have different strategies in the choice of the means of protection according to their basic economic characteristics of firms, their activities and industry environment. They also put in evidence of the role of human resources strategies. Firms that finance R&D training prefer to use non-statutory means.
    Keywords: Appropriability; Intellectual property rights; Innovation; Human resources strategies; Multivariate probit;
    JEL: C35 O32 O34
    Date: 2011
  6. By: Rahmouni, Mohieddine
    Abstract: In spite of the considerable effort of the works focused on the identification of conditions and factors favourable to innovation in developing countries, very few contributions concern the analysis of the obstacles impeding or slowing the process of innovation and factors affecting their perceptions. But, the innovation behaviour of firms can be affected by their assessment of barriers and difficulties encountered in the innovation process. This work is dedicated to the analysis of the perceived barriers to innovation activities in Tunisian firms, using the innovation survey developed by the Ministry of Scientific Research, Technology and Competency Development (MSRTDC) in 2005. It advocates a systemic approach to innovation policies which take into account established complementarities. We show that the perception of barriers to innovation is less pronounced for foreign firms and more important for exporters who face competitive pressures, leading to a high perception of barriers related to lack of information technology and lack of qualified personnel. To overcome the barriers to innovation related to excessive economic risks, high costs of innovation or lack of appropriate funding sources, our results suggest an important role of public participation and the foreign capital. Lack of financial resources is also one of the main barriers.
    Keywords: Innovation; obstacles; développement
    JEL: O1 O3
    Date: 2011–01–19
  7. By: IMBRIANI, Cesare (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy); REGANATI, Filippo (Dipartimento Sociologia e Comunicazione, Università di Roma La Sapienza)
    Abstract: This work examines the main theoretical and empirical interpretations regarding the effects of foreign direct investment on productivity of local firms and, in particular, in which way productivity spillovers are related to the existence of regional differences. By taking into consideration the Italian manufacturing sector and using cross-section data, we find that although at a national level productivity levels are higher in the domestic sectors where multinational firms account for larger shares, productivity spillovers are concentrated only in the north-western area of Italy.
    Keywords: foreign direct investment; productivity spillovers
    JEL: F23 O30
    Date: 2011–01–18

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