nep-sbm New Economics Papers
on Small Business Management
Issue of 2011‒06‒25
nine papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Innovationskooperationen und Wissenstransfer von Unternehmen im Raum Jena By Kaps, Katharina; Pfeil, Silko; Sauer, Thomas; Stoetzer, Matthias-Wolfgang
  2. A Spatially-related Note on Entrepreneurship and Economic Growth By Torben Klarl
  3. R&D and productivity in the Indian pharmaceutical firms By Sharma, Chandan
  4. Global Innovation Networks: what are they and where can we find them? (Conceptual and Empirical issues) By Barnard, Helena; Chaminade, Cristina
  5. Job Creation and the Intra-distribution Dynamics of the Firm Size Distribution By Peter Huber; Harald Oberhofer; Michael Pfaffermayr
  6. Patterns of Technology, Industry Concentration, and Productivity Growth Without Scale Effects By Colin Davis; Ken-ichi Hashimoto
  7. Productivity Growth and Patterns of Industry Location Without Scale Effects By Colin Davis; Ken-ichi Hashimoto
  8. Emerging country MNEs and the role of home countries: separating fact from irrational expectations By Narula, Rajneesh; Nguyen, Quyen T.K.
  9. The dynamics of national innovation systems: a panel cointegration analysis of the coevolution between innovative capability and absorptive capacity By Fulvio, Castellacci; Jose Miguel, Natera

  1. By: Kaps, Katharina; Pfeil, Silko; Sauer, Thomas; Stoetzer, Matthias-Wolfgang
    Abstract: Die im Rahmen des vom Bundesministerium für Bildung und Forschung (BMBF) geförderten Projektes KompNet2011 - Erfolgsfaktoren regionaler Innovationsnetze - durchgeführte Befragung untersucht die Innovationskooperationen sowie Wissenstransferaktivitäten von schwerpunktmäßig kleinen und mittleren Unternehmen (KMU) in der Region Jena. Die Studie konzentriert sich auf drei Aspekte: Mit welcher Intensität werden die verschiedenen Transferkanäle für die Übertragung des Wissens zwischen den kooperierenden Partnern genutzt? Welche Innovationsrelevanz wird den einzelnen Transferarten durch die Unternehmen beigemessen? In welchem räumlichen Kontext finden diese Transferbeziehungen statt? Es konnte festgestellt werden, dass vertikale Kooperationsbeziehungen von mehr als 75% der innovativen Unternehmen praktiziert werden. Unentbehrlich für den Erfolg von Kooperationen sind regelmäßige face-to-face-Kontakte zwischen den Beteiligten. Obwohl die Unternehmen bei Innovationsvorhaben mit zahlreichen Partnern zusammenarbeiten, ist die Eigenentwicklung die mit Abstand wichtigste Entwicklungsart. Mehr als 80% der Befragten nutzen unmittelbare Wissenstransferformen, wie Aus-/Weiterbildungsleistungen und Workshops. Humankapitalorientierte Kanäle, wie die Beschäftigung von Praktikanten und Werkstudenten oder die Betreuung von Seminar- bzw. Abschlussarbeiten werden von mehr als 50% praktiziert. Weniger als die Hälfte der Unternehmen nutzt hingegen klassische F&E-Transferkanäle. Neben den unmittelbaren Kanälen und der Verbundforschung zeichnen sich auch die unterdurchschnittlich ausgeübten klassischen F&E-Transferarten durch eine hohe Innovationsrelevanz aus, d.h. sowohl Transferkanäle für stillschweigendes (implizites) Erfahrungswissen als auch für explizites technologisches Wissen sind für den Innovationserfolg wichtig. Die Transferaktivitäten werden - unabhängig von dem genutzten Transferkanal - vorwiegend regional und mit Partnern aus der eigenen Branche durchgeführt. Der Import von Wissen aus dem Ausland ist für die innovativen Unternehmen im Raum Jena von untergeordneter Bedeutung. -- The research project KompNet 2011 - Factors determining the success of regional innovation networks, funded by the Federal Ministry of Education and Research (BMBF), examines the cooperation activities of predominant small and medium-sized enterprises (SME) in and closely around Jena (Thuringia). The study focuses on three aspects: How do the different channels used in the transfer process between cooperating partners vary with regard to their intensity? Which types of knowledge transfer are relevant for the development of innovations? In which spatial context do these transfer relations occur? The study reveals that vertical cooperative relations are practiced by more than 75% of the survey participants. Regular personal contacts face-to-face areessential for the success of these relations. Although the regional SME collaborate with numerous partners in innovation projects, nevertheless in-house development is the most important form of creating innovative products. Over 80% of the participants use direct channels of knowledge transfer, such as education/training services and workshops. Human capital oriented channels, such as the employment of apprentices/students, are practiced by 50% of the surveyed firms. Less than half of the participants use traditional R&D transfer channels, e.g. collaborative research and R&D contracts. Direct transfer channels and collaborative research, but also the classical R&D transfer types, which are practiced with less intensity, are very important for the innovation success. Tacit and codified transfer channels are equally important for the success of innovation projects. Furthermore the study reveals that knowledge transfer activities are - regardless of transmission type - primarily regionally oriented and focus on partner from the same industry. The import of knowledge from abroad is less important for the innovative companies in the region of Jena.
    Keywords: Innovationskooperation,Wissenstransfer,Kooperationspartner,Transferkanal,Innovation,KMU,co-operation partners,innovation cooperation,knowledge transfer,transfer channel,innovation,SME
    JEL: D85 L14 O31 O32
    Date: 2011
  2. By: Torben Klarl (University of Augsburg, Department of Economics)
    Abstract: A large and still growing body of literature suggests that entrepreneurship is of exceptional importance in explaining knowledge spillovers. Although quantifying the impact of entrepreneurial activity for economic growth is an interesting issue – particularly at the regional level – a concise formulation within a theoretical growth model is still missing. This paper in general tries to uncover the link between own- and neighbour-related regional entrepreneurial activity in innovation and regional growth within a spatial semi-endogenous growth model in the spirit of Jones (1995) reflecting recent empirical findings on entrepreneurial activity for economic growth. The paper derives an explicit solution for the transitional as well as for the balanced growth path level of ideas.
    Keywords: entrepreneurship, economic growth, innovation, knowledge spillover
    JEL: M13 O31 R5
    Date: 2011–06
  3. By: Sharma, Chandan
    Abstract: Recent researches for developing countries suggest knowledge generating activates is no silver bullet for productivity growth. In this context, this paper examines the impact of R&D activities on firms’ performance for the Indian pharmaceutical industry by utilizing the data of the post reform period (1994-2006). The empirical analysis is performed in two stages. In first stage, we examine the relative productivity performance of R&D vis-à-vis non- R&D. Subsequently, we construct two empirical frameworks, namely, growth accounting and production function. Results of analysis indicate that R&D firms have productivity edge over non- R&D firms. Regression results based on the growth accounting framework suggest that R&D intensity has a positive and significant effect (15%) on TFP. The results also confirm that the performance of foreign firms operating in the industry is more sensitive towards R&D than the local firms. Furthermore, the estimation results of the production function approach indicate that the output elasticity to R&D capital varies from 10% to 13%. Therefore, we support the argument that ‘manna from heaven’ impact is large and significant.
    Keywords: Productivity; R&D; Indian Pharmaceutical
    JEL: D24 O3
    Date: 2011–02–12
  4. By: Barnard, Helena (GIBS, U. Pretoria); Chaminade, Cristina (CIRCLE, Lund University)
    Abstract: The rapid move of China and India from low-cost producers to innovators has triggered an increasing interest in the globalization of innovation activities and more specifically, on the surge of global innovation networks (GINs). However, hitherto most of the literature is either theoretical or based on a handful of cases. We do not know what are the different forms of GINs in which firms participate, both in terms of the various degrees of globalness, innovativeness and neworkedness as well as their main characteristics. In this paper, we propose a taxonomy of global innovation networks that takes into account these different dimensions. This paper provides empirical evidence about the characteristics of the different variants of global innovation networks, observed in seven European countries as well as Brazil, China, India and South Africa. It relies on firm-level data collected through a survey in 2010 and provides for the first time a theoretical and empirical overview of the different forms of global innovation networks.
    Keywords: Globalization; innovation networks; taxonomy; Europe; South Africa; Brazil; China; India
    JEL: O19 O32 O57
    Date: 2011–06–13
  5. By: Peter Huber (WIFO); Harald Oberhofer; Michael Pfaffermayr (WIFO)
    Abstract: Based on a structural model for initial firm size, survival and firm growth we estimate firm-specific transition probabilities between size classes of the firm size distribution. This allows an assessment of the impact of different (counterfactual) economic policy measures on intra-distribution dynamics of the firm size distribution. We find that policies increasing the life span of firms reduce the exit hazard of young firms, but also reduce the probability to be a Gazelle. An increase in the industry-wide entry rate increases the exit hazards of incumbent firms and has no strong impact on the likelihood of firms to become Gazelles. Increasing market growth, by contrast, decreases the exit hazards for incumbent firms and slightly increases the likelihood of firms to be Gazelles. Finally, an increase in the birth size of firms increases the probability of young firms to be Gazelles with strongest effects for the smallest firms.
    Keywords: Firm growth, survival, entry size, Gazelles, economic policy
    Date: 2011–05–31
  6. By: Colin Davis (Institute for International Education, Doshisha University); Ken-ichi Hashimoto (Graduate School of Economics, Kobe University)
    Abstract: This paper investigates the relationship between geographic patterns of industrial activity and endogenous growth in a two region model of trade that exhibits no scale effect. The in-house process innovation of manufacturing firms drives productivity growth and is closely associated with firm-level scales of production and relative levels of accessible technical knowledge. Focusing on long-run industry shares and a cross-region productivity gap, we find that dispersed equilibria with positive industry shares for both regions always produce higher growth rates than core-periphery equilibria with all industry locating in one region. Moreover, the highest growth rate arises in a symmetric steady state that features no productivity gap and equal shares of industry leading to the conclusion that the geographic concentration of industry has a negative impact on overall growth. Convergence towards a dispersed equilibrium, however, is contingent on the levels of inter-regional transport costs and knowledge dispersion. Finally, we explore the implications of greater economic integration arising from reduced transport costs and greater knowledge dispersion for patterns of industry and productivity, and for regional welfare levels within a dispersed equilibrium.
    Keywords: Industry Concentration, Industry Share, Productivity Gap, Productivity Growth, Scale Effect
    JEL: F43 O30 O40 R12
    Date: 2011–06
  7. By: Colin Davis (Institute for International Education, Doshisha University); Ken-ichi Hashimoto (Graduate School of Economics, Kobe University)
    Abstract: This paper investigates the relationship between geographic patterns of economic activity and productivity growth in a two region model of trade and endogenous growth without scale effects. At the core of the model is the production and in-house innovation activities of manufacturing firms and, in a world of transport costs, imperfect knowledge dispersion and perfect capital mobility, these activities are located independently in the region that provides the lowest associated cost. In contrast to the existing literature, we remove scale effects by shifting the focus from aggregate research and development activity to innovation at the level of individual product lines and find that although industry concentration raises the level of product variety, it reduces the rate of productivity growth so that the pace of economic growth is highest when industry is equally dispersed across regions. We also study the effects of greater economic integration between regions and find that increases in the freeness of trade and the level of knowledge dispersion both have negative effects on productivity growth while raising the level of product variety. These opposing effects for growth and product variety lead to mixed results for the impacts of economic integration on regional welfare.
    Keywords: Industry Concentration, Industry Share, Productivity Growth, Scale Effect
    JEL: F43 O30 O40 R12
    Date: 2011–06
  8. By: Narula, Rajneesh (Henley Business School, University of Reading); Nguyen, Quyen T.K. (Henley Business School, University of Reading)
    Abstract: This paper takes a look at the research on Emerging country multinational enterprises (EMNEs) over the last 25 years, and argues that growth in EMNE activity over the last 10 years continues to be dominated by Asian Newly Industrialised Countries (NICs), and to a lesser extent by Brazil, Russia, India and China (the BRICS). Instead of focusing on the success stories, we ask: Why have so few emerging home countries failed to fulfil their potential as significant outward investors, and converged (at least) with the NICs? Many of the EMNEs from the non-NICs continue to reflect limited O advantages, and unless they are able to upgrade their firm-specific assets, this trend is likely to continue. We propose that - in line with extant IB theory - the extent and intensity of EMNE activity is a function of their O advantages, which in turn are largely a function of their home country L advantages. We also call into question the soundness of the idea that EMNEs are able to utilise asset-seeking foreign direct investment (FDI) to build up their O advantages. Such asset-augmentation presumes that the firms have non-location-bound firm-specific assets that have the potential to be upgraded and augmented.
    Keywords: FDI, Foreign Investment, MNEs, eclectic paradigm, asset-seeking, knowledge flows, emerging markets
    JEL: F23 L52 O14 O19
    Date: 2011
  9. By: Fulvio, Castellacci; Jose Miguel, Natera
    Abstract: This paper puts forward the idea that the dynamics of national innovation systems is driven by the coevolution of two main dimensions: innovative capability and absorptive capacity. The empirical analysis employs a broad set of indicators measuring national innovative capabilities and absorptive capacity for a panel of 98 countries in the period 1980-2008, and makes use of panel cointegration analysis to investigate long-run relationships and coevolution patterns among these variables. The results indicate that the dynamics of national systems of innovation is driven by the coevolution of three innovative capability variables (technological output, scientific output, innovative input), on the one hand, and three absorptive capacity factors (income per capita, infrastructures and international trade), on the other.
    Keywords: national systems of innovation; innovative capability; absorptive capacity; economic growth and development; coevolution; panel cointegration analysis
    JEL: F00 O30 O10 F43 C33 O40
    Date: 2011–06

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