nep-sbm New Economics Papers
on Small Business Management
Issue of 2011‒11‒07
fifteen papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. The effects of cooperative R&D subsidies and subsidized cooperation on employment growth By Tom Broekel; Antje Schimke; Thomas Brenner
  2. Firm Growth and the Spatial Impact of Geolocated External Factors – Empirical Evidence for German Manufacturing Firms By Matthias Duschl; Antje Schimke; Thomas Brenner; Dennis Luxen
  3. Innovation, Metropolitan and Productivity By Lööf , Hans; Johansson, Börje
  4. The Contribution of Universities to Growth: Empirical Evidence for Italy By M. Carree; A. Della Malva; E. Santarelli
  5. Looking into the black box of Schumpeterian Growth Theories: an empirical assessment of R&D races By Francesco Venturini
  6. Firm-level determinants and impacts of finance-seeking behaviour and outcomes for small and medium-sized enterprises (SMEs) in Australia By Dong Xiang; Andrew C Worthington; Helen Higgs
  7. Intelligence, Self-confidence and Entrepreneurship By Asoni, Andrea
  8. Regional Growth and Convergence: The Role of Human Capital in the Portuguese Regions By Catarina Cardoso; Eric J. Pentecost
  9. Innovation andCooperation: Evidences from the Brazilian Innovation Survey By DAVID KUPFER; Ana Paula Avellar
  10. Innovation networks in China, Japan, and Korea : further evidence from U.S. patent data By Nabeshima, Kaoru; Tanaka, Kiyoyasu
  11. Industrial Policy and Competition By Aghion, Philippe; Dewatripont, Mathias; Du, Liqun; Harrison, Ann; Legros, Patrick
  12. Patent fees for a sustainable EU patent system By Jérôme Danguy; Bruno Van Pottelsberghe
  13. Corporate Taxation and SMEs: The Italian Experience: The Italian Experience By Marco Manzo
  14. Entry, growth, and survival in the green industry By De Silva, Dakshina G.; Hubbard, Timothy P.; McComb, Robert P.; Schiller, Anita R.
  15. A Survey of Venture Capital Research By Da Rin, M.; Hellmann, T.; Puri, M.L.

  1. By: Tom Broekel (Institute of Economic and Cultural Geography, Leibniz University of Hanover); Antje Schimke (Karlsruhe Institute of Technology (KIT)); Thomas Brenner (Department of Geography, Philipps University Marburg)
    Abstract: The paper investigates the contribution of cooperative and non-cooperative R&D subsidies to firm growth. Of particular interest is hereby firms’ embeddedness into subsidized cooperation networks. For the empirical analysis we utilize an unbalanced panel of 2.199 German manufacturing firms covering the time period from 1999 to 2009. A dynamic panel estimation technique is employed to control for growth autocorrelation as well as endogeneity. Our findings show that non-cooperative R&D subsidies have a stimulating impact on large firms’ employment growth. In contrast being engaged in many subsidized cooperation is related to significant growth-reducing effects. In the case of large firms, exceptions are subsidized cooperation with geographically distant firms, which can positively influence employment growth. For small firms, rather interactions with research organizations are found to facilitate their development.
    Keywords: R&D subsidies, cooperation network, firm growth, serial correlation
    JEL: H25 J23 D85
    Date: 2011–11
  2. By: Matthias Duschl (Department of Geography, Philipps University Marburg); Antje Schimke (Karlsruhe Institute of Technology (KIT)); Thomas Brenner (Department of Geography, Philipps University Marburg); Dennis Luxen (Karlsruhe Institute of Technology (KIT))
    Abstract: In this paper the relationship between firm growth and external knowledge sources, such as related firms and universities, is studied. The spatial characteristics of these relationships are examined by geolocating firms into a more realistic relational space using travel time distances and using flexible distance decay function specifications. This approach properly accounts for growth relevant knowledge spillovers and allows for estimating their spatial range and functional form. Applying quantile regression techniques on a large sample of German manufacturing firms, we show that the impact of external factors substantially differ along firms’ size, type of knowledge source and growth level.
    Keywords: Firm growth, external factors, universities, agglomeration, space, spatial range, distance decay functions, knowledge spillovers, high growth firms, quantile regression
    JEL: C31 D92 L25 R11
    Date: 2011–10
  3. By: Lööf , Hans (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: This paper assesses the contribution to productivity of firms’ internal innovation efforts and spatially-specific factors. A dynamic GMM-estimator is applied to a panel of close to 3,000 firms located in 81 Swedish regions and observed over a 10-year period. The magnitude of benefits from the knowledge milieu of an agglomeration is sizeable, but varies between firms depending on their particular R&D-strategy and location within a metropolitan region.
    Keywords: R&D; innovation-strategy; productivity; metropolitan; externalities
    JEL: C23 O31 O32
    Date: 2011–10–27
  4. By: M. Carree; A. Della Malva; E. Santarelli
    Abstract: New entrepreneurial ventures may represent a viable and effective mechanism to transform academic knowledge into regional economic growth. We test this notion for the Italian provinces between 2001 and 2006. We evaluate three outputs of academic activities: teaching, research and Intellectual Property Rights (IPR) activities management. New ventures may be able to transform the mentioned outputs into improved economic performance. The findings show that the effects of academic outputs on provincial economic growth (all sectors) are appreciable when they are associated with sustained entrepreneurial activities in the province. It suggests that academic inquiry may provide new ventures with valuable commercial opportunities overseen by established companies.
    JEL: I23 O18 O34 R11
    Date: 2011–10
  5. By: Francesco Venturini
    Abstract: This paper assesses whether the most important R&D technologies at the roots of second-generation Schumpeterian growth theories are consistent with patenting and innovation statistics. Using US manufacturing industry data, we estimate various systems of simultaneous equations modeling the innovation functions underlying growth frameworks based on variety expansion, diminishing technological opportunities and rent protection activities. Our evidence indicates that innovation functions characterized by the increasing difficulty of R&D activity fit US data better. This finding relaunches the debate on the soundness of the new Schumpeterian strand of endogenous growth literature.
    Keywords: R&D, patenting, Schumpeterian growth, US manufacturing.
    JEL: O31 O41 O42
    Date: 2011–09–01
  6. By: Dong Xiang; Andrew C Worthington; Helen Higgs
    Keywords: Small and medium-sized enterprises, financing decisions, debt and equity, discouraged borrower
    JEL: C25 G32 L21
    Date: 2011
  7. By: Asoni, Andrea (Research Institute of Industrial Economics (IFN))
    Abstract: I investigate the effect of human capital on entrepreneurship using the National Longitudinal Survey of Youth - 1979. I find that individuals with higher measured intelligence and self-confidence are more likely to be entrepreneurs. Furthermore I present evidence suggesting that intelligence and self-confidence affect business ownership through two different channels: intelligence increases business survival while self-confidence increases business creation. Finally, once we control for intelligence and self-confidence the effect of formal college education almost completely vanishes. These results are robust to controlling for selection into entrepreneurship and selection into college.
    Keywords: Entrepreneurship; College Education; Intelligence; Self-confidence
    JEL: C41 J24 L26
    Date: 2011–10–24
  8. By: Catarina Cardoso (School of Business and Economics, Loughborough University, UK); Eric J. Pentecost (School of Business and Economics, Loughborough University, UK)
    Abstract: Potentially one of the most important determinants of regional economic growth and convergence is human capital, although due to a lack of data this factor is frequently omitted from econometric studies. In contrast, this paper constructs three measures of human capital at the NUTS III regional level for Portugal for the period 1991-2008 and then includes these variables in regional growth regressions. The results show that both secondary and higher levels of education have a significant positive effect on regional growth rates which may be regarded as supportive of Portuguese education policy, which over the last three decades has attempted to raise the regional human capital by locating higher education institutions across the country.
    Keywords: Human capital, Regional convergence, GMM
    JEL: C23 I21 O18 R11
    Date: 2011–09
  9. By: DAVID KUPFER; Ana Paula Avellar
    Date: 2011
  10. By: Nabeshima, Kaoru; Tanaka, Kiyoyasu
    Abstract: The growing importance of innovation in economic growth has encouraged the development of innovation capabilities in East Asia, within which China, Japan, and Korea are most important in terms of technological capabilities. Using U.S. patent data, we examine how knowledge networks have developed among these countries. We find that Japan's technological specialization saw gradual changes, but those of Korea and China changed rapidly since 1970s. By the year 2009, technology specialization has become similar across three countries in the sense that the common fields of prominent technology are electronics and semiconductors. Patent citations suggest that technology flows were largest in the electronics technology, pointing to the deepening of innovation networks in these countries. Together with our prior work, the Japanese and U.S. data produce similar conclusions about innovation networks.
    Keywords: East Asia, China, South Korea, Japan, United States, Industrial technology, Technological innovations, Patents, Electronics, Innovation Network, Patent Statistics, Korea
    JEL: O31 O33 L6
    Date: 2011–04
  11. By: Aghion, Philippe; Dewatripont, Mathias; Du, Liqun; Harrison, Ann; Legros, Patrick
    Abstract: The economic slowdown in the 70s in Latin America and Japan in the late 90s, generated a growing skepticism about the role of industrial policy in the process of economic development. Yet, new considerations have emerged over the recent period, which invite us to revisit the issue. This paper argues that sectoral state aids tend to foster productivity, productivity growth, and product innovation to a larger extent when it targets more competitive sectors and when it is not concentrated on one or a small number of firms in the sector. Using a theoretical framework in which two firms may choose either to operate in the same "higher-growth" sector or in different, "lower-growth" sector. We use a panel of medium and large Chinese enterprises for the period 1998 through 2007 to test for complementarity between competition and industrial policy. A main implication from our analysis is that the debate on industrial policy should no longer be for or against having such a policy. As it turns out, sectoral policies are being implemented in one form or another by a large number of countries worldwide, starting with China. Rather, the issue should be on how to design and govern sectoral policies in order to make them more competition-friendly and therefore more growth-enhancing.
    Date: 2011–11
  12. By: Jérôme Danguy; Bruno Van Pottelsberghe
    Abstract: This paper puts forward a sustainable fee structure for the EU Patent (COMPAT). The proposal includes pre-grant and post-grant fees and illustrates the differences between Euro-direct applications and PCT applications. The break-even analysis shows that the COMPAT would make the European patent system more attractive with significantly lower relative costs. At the same time, the new schedule provides a financially sustainable model for the system by preserving relatively high absolute fees and allowing for a fee reduction for small innovative firms and public research organizations.
    Keywords: European patent system; Fees; EU patent
    JEL: O34 P14 K41
    Date: 2011–09
  13. By: Marco Manzo
    Abstract: This paper focuses on the tax impediments faced by small and medium-sized enterprises in Italy. The fact that small businesses are characterized by financing constraints and have less access to bank loans is often emphasized as an argument in favour of a special tax treatment for small enterprises. On the one hand, however, the evidence that SMEs suffer severe financing constraints is not overwhelming; on the other hand, tax relief for SMEs is not necessarily the best response to financial market imperfections.
    Date: 2011–11–03
  14. By: De Silva, Dakshina G.; Hubbard, Timothy P.; McComb, Robert P.; Schiller, Anita R.
    Abstract: Economists have, for some time, studied the factors that induce firm entry, lead to growth, and help firms succeed in various markets. Unfortunately, such patterns have not been considered for the so-called "green industries." Although policymakers might like to stimulate development of the green sectors in encouraging sustainable growth, one difficulty has been defining exactly what constitutes the green economy. We employ a recent, narrow definition proposed by the Bureau of Labor Statistics to investigate and identify important factors for the green industries within the State of Texas. We find some differences between the green industries and all other industries, but these effects are often small relative to other major explanatory factors like agglomeration. The definition also partitions the green industry into five subcategories and we leverage this feature to study the importance of these factors for the intra-green industries and to identify the comparative advantage each county has within the green economy.
    Keywords: Green industry; firm entry; employment growth; firm survival
    JEL: R30 O49 Q56
    Date: 2011–10–31
  15. By: Da Rin, M.; Hellmann, T.; Puri, M.L. (Tilburg University, Center for Economic Research)
    Abstract: This survey reviews the growing body of academic work on venture capital. It lays out the major data sources used. It examines the work on venture capital investments in companies, looking at issues of selection, contracting, post-investment services and exits. The survey considers recent work on organizational structures of venture capital firms, and the relationship between general and limited partners. It discusses the work on the returns to venture capital investments. It also examines public policies, and the role of venture capital in the economy at large.
    Keywords: Venture capital;private equity;alternative assets;IPOs;acquisitions;corporate venture capital;public policy;limited partners;institutional investors;syndication;innovation;venture capital returns.
    JEL: G24 G21 G23
    Date: 2011

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