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on Small Business Management |
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Issue of 2011‒05‒07
seven papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Andrea, Canidio |
| Abstract: | Empirical evidence shows that R&D productivity decreases with firm size. I provide an explanation to this fact by developing a model of science production where heterogeneous researchers are endogenously allocated to different firms. The main assumption is that firms invest in research to increase their absorptive capacity: the ability to use and understand knowledge produced outside of the firm. Firms create absorptive capacity by building labs and hiring researchers in a competitive market. Because of externalities, firms underinvest in labs. More interestingly, researchers and labs are substitutes in the revenue function, even though they are complements in the research production function. As a consequence, the greater the investment in research, the lower the productivity of the researcher working for the firm. This generates a novel form of inefficiency: for any given investment, the allocation of researchers to firms is non optimal. |
| Keywords: | Knowledge, R&D Productivity, Organization of Scientific Research, Externality, Absorptive Capacity, Matching with Investment. |
| JEL: | D21 O38 O31 H23 L22 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30257&r=sbm |
| By: | Spyros Arvanitis (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Martin Woerter (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | Aim of this study is to combine micro-aspects of firm behaviour with macro-aspects of business development and identify market conditions (for example, price competition) and firm characteristics (for example, type of R&D partners) that enable a firm to have a procyclical, anti-cyclical or non-systematic R&D investment behaviour. New elements of our analysis are: (a) the identification in our data of the above three main types of R&D behaviour with respect to the fluctuation of overall economic activity as measured by a standard composite indicator of the business conditions at industry level and (b) the investigation of a series of hypotheses as to innovation-relevant firm characteristics that underline the three different behaviour categories. The empirical results confirm to large extent our hypotheses and allow us to make profiles of the three types of R&D behaviour. |
| Keywords: | R&D, anti-cyclical behaviour, pro-cyclical behaviour |
| JEL: | O3 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:11-277&r=sbm |
| By: | Toole, Andrew A; King, John L |
| Abstract: | Prior research identifies a direct positive link between the stock of public scientific knowledge and agricultural productivity; however, an indirect contribution to agricultural productivity is also possible when this stock facilitates private sector invention. This study examines how âconnectednessâ between the stock of public scientific knowledge and private firms influences firm-level research productivity. Bibliographic information identifies the nature and degree to which firms use public agricultural science through citations and collaborations on scientific papers. Fixed effects models show that greater citations and collaborations with university researchers are associated with greater agricultural research productivity. |
| Keywords: | public science, research productivity, patents, citations, collaboration, R&D, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, Q16, O31, |
| Date: | 2011–04–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea11:103211&r=sbm |
| By: | Jean BELIN (GREThA, CNRS, UMR 5113); Jens HORBACH (University of Applied Sciences Augsburg); Vanessa OLTRA (GREThA, CNRS, UMR 5113) |
| Abstract: | Many recent papers deal with exploring and explaining the determinants of eco-innovations for different countries supporting the formulation of efficient policy measures to trigger eco-innovation activities of firms. Unfortunately, there is still a lack of cross-country analyses allowing recognizing “international” stylized facts, but also regional characteristics of eco-innovations. Based on data from the fourth Community Innovation Survey (CIS) for France and Germany, the present paper tries to contribute to fill this gap. Using econometric methods, we are able to detect remarkable similarities between the different determinants of eco-innovation in the two countries. The results confirm the central role of regulation and cost savings as motivations for eco-innovation. Furthermore, eco-innovative activities seem to require more external sources of knowledge and information than innovation in general. |
| Keywords: | Eco-Innovation, Industry, Discrete Choice Models |
| JEL: | Q55 O33 O38 C25 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2011-17&r=sbm |
| By: | Schimke, Antje; Brenner, Thomas |
| Abstract: | This paper investigates whether the economic factors that are related to firm growth in the literature also determine the development path of firms. This means that we test which economic factors possess the ability to remain effective for a longer period of time. We examine three variables: firm size, innovation effort and export share. To this end, we use panel-data on 178 German manufacturing firms over the period from 1992 to 2007. We find that the determinants of permanent growth path are not the same as the determinants of firm growth at one point in time. -- |
| Keywords: | firm growth,firm growth paths,firm size,export,innovation effort |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitwps:21&r=sbm |
| By: | Andersson, Martin (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | The paper focuses on challenges and potentials for policy in the presence of fundamental change processes that influence the long-term evolution of regions. The perspective in the paper implies that policy can be viewed as ‘management of change’. We present a conceptual model for understanding the nature of fundamental change processes, which emphasizes slowly changing regional characteristics and invariant self-organized response mechanisms. It is supported by empirical examples of the invariant character of regional development and innovation phenomena, such as long-term population growth, export dynamics and persistence in new firm formation across regions in Sweden. The examples are put in perspective by studying the behavior of dynamic systems. A discussion of how policy may support new trajectories are provided. |
| Keywords: | business renewal; innovation; regional policy; persistence; change-processes; dynamic systems; path-dependence |
| JEL: | O31 R11 R12 R58 |
| Date: | 2011–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0249&r=sbm |
| By: | Clara Cardone Riportella; Antonio Trujillo; Anahí Briozzo |
| Abstract: | This paper analyses the impact of the new Basel Capital Accords (Basel II and Basel III) on the bank’s capital requirements in a portfolio of Small and Medium-sized Enterprises (SMEs) when the internal ratings-based (IRB) approach is used. To do this, the study uses a large database of Spanish firms and covers the period from 2005 to 2009. We also examine the effect on the credit risk premium charged by banks of the guarantee offered by a Loan Guarantee Association (LGA) to a SME; and whether this foreseeable decrease in the interest rates applicable to the SME is compensated by the cost of this guarantee |
| Keywords: | Bank capital requirements, Credit risk mitigation, Bank financing of SMEs, Basel II, Basel III Loan Guarantee Association |
| JEL: | G21 G32 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:cte:wbrepe:wb111004&r=sbm |