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on Small Business Management |
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Issue of 2011‒12‒05
seventeen papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Roberta Capello; Camilla Lenzi |
| Abstract: | This paper investigates over the way in which regions innovate. The conceptual framework departs from the simple idea that scientific activities equates knowledge, assuming that the presence of local knowledge produced by research centers, universities and firms was a necessary and sufficient condition for increasing the innovative capacities in local firms, fed by local spillovers. In particular, the paradigmatic jump in interpreting regional innovation processes lies in a conceptual framework interpreting not a single phase of the innovation process, but the different modes of performing the different phases of the innovation process, highlighting the context conditions (internal and external to the region) that accompany each innovation pattern. The paper conceptually identifies different territorial patterns of innovation, and empirically test their existence in Europe. Interesting results emerge from the European territory, witnessing the existence of large differences in the territorial patterns of innovation. These results strongly support normative suggestions towards thematically/regionally focused innovation policies. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1900&r=sbm |
| By: | Manuel Lopez-Estornell; Ignacio Fernández de Lucio |
| Abstract: | ABSTRACT The first aim of the paper is to analyze the presence of knowledge in innovative firms located in industrial districts (ID) in order to contrast it with this kind of firm located in non industrial districts areas (NID). This approach assumes the presence of an industrial district effect, i.e., the presumption of a better performance of knowledge and economic results in the first group of firms. Second, we have attempted to identify the existence of interdistrict effect, i.e., the emergence of gaps in knowledge of innovative firms located in ID with different technological intensity. For both purposes we have chosen the Valencian ID in Spain. Besides, with the introduction of innovative firms as units of analysis we have assumed that: a) They reflect a superior use of knowledge resources as inputs for business innovation generation and b) Their greatest use of such resources facilitate the absorption of knowledge spillovers that flow through the district. The empirical analysis has used an unprecedented database containing information of 5,553 innovative companies we have found in the region. The mean analysis applied has allowed us to identify the variables with statistically significant differences, as a preliminary step to isolate the groups of firms with more pronounced central values. The results have shown the presence of differences characterizing differently innovative companies of ID and NID as well as the groups of innovative firms belonging to districts of different technological level. In the first case the superiority of innovative companies has not arisen and, consequently, we cannot confirm the existence of a district effect. Nevertheless, we have detected some evidence of inter-industrial effect in the gradation performance of innovation firms of shoes, textiles and tales. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p361&r=sbm |
| By: | Roberto Dopeso Fernandez |
| Abstract: | This paper analyzes to what extent marshallian agglomeration economies affect the creation of new entrepreneurial ventures at the metropolitan level. The measuring of agglomeration economies is based on the construction of indexes using the methodology of Glaeser and Kerr (2009). The indexes attempt to capture the effects of resource sharing, labor matching and knowledge spillovers according to the taxonomy proposed by Marshall (1920). Also an index to measure the influence of small suppliers to attract new business ventures, following Chinitz (1961), is constructed. Data on new firms and employment generated is accounted for the period 2000-2008. The analysis is based on the activity of the 15 largest metropolitan areas in Spain. Sixty two-digit industries (CNAE-93) are considered. The results show that jobs created by entrepreneurs are highly influenced by the ability to share suppliers and customers. Firm creation is influenced by those factors as well as the presence of small suppliers and the proximity to innovative activity. Agglomeration indexes with sector and city fixed effects explain more than 90% of new entry and employment generated. The potential multicollinearity among indexes is tested using principal component analysis. This analysis shows some complementarities among the indexes. New regressions using the factorized terms show that traditional measures of localization economies hide specific information about the process of agglomeration. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1771&r=sbm |
| By: | Gunther Maier; Michaela Trippl |
| Abstract: | This paper seeks to enhance our understanding about the opportunities and limits of new path creation in traditional regional innovation systems. Due to their inherited historical legacies, such systems are usually thought of being ill-equipped to give rise to high-tech or knowledge intensive activities. Departing from recent insights on research concerned with the transformation of innovation systems and evolutionary economic geography we identify in a conceptual way enabling and constraining factors for the rise of new development paths in traditional regions. Empirically, we focus on the case of the “Software Park Hagenberg†(SPH) located in the old industrial region of Upper Austria. We examine key events triggering the emergence and subsequent evolution of the SPH and explore the role of the RIS in shaping the development trajectory of the SPH. Moreover, applying social network analysis tools, we investigate the pattern of networking between firms, research organisations and educational bodies within the SPH and we provide some evidence on the diffusion of knowledge and innovation generated though these interactions throughout the regional economy. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1830&r=sbm |
| By: | Jose Polo; Néstor Duch; Martà Parellada |
| Abstract: | In this paper we empirically analyze the effects of collaboration in innovation with universities on the firm’s innovative performance. Using data from the Technological Innovation Panel dataset (PITEC for its acronym in Spanish) we have constructed a database of 4643 innovative firms in Spain, where we estimate the impact of different types of collaborative partnerships on the increments on firm’s range and quality of products, and on the improvements of the firm’s production capacity and flexibility. The estimation from an ordered logit model shows that firms collaborating actively with universities, as well as, firms that use universities as their principal source of information are more prone to have product and process additionalities, while subcontracting specific R&D activities to universities do not seem to affect the firm’s innovative performance. A sensitive analysis shows that firms belonging to manufacturing sectors benefit more from the collaboration with universities than firms from services sectors. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p671&r=sbm |
| By: | LuÃs MartÃnez-Cháfer; Josep Capó-Vicedo; F. Xavier Molina-Morales |
| Abstract: | In recent times, the international competitive panorama has undergone intense rapid change, due especially to the presence of new competitors, new technology and new markets. These changes and their repercussions have had a significant impact on many industrial districts, which has left many of these agglomerations in critical condition. When facing these new circumstances, the function of local institutions takes on a much greater importance in how these districts adapt to the new competitive context, connecting companies with external networks which give access to new sources of information and knowledge. Furthermore, the role of local institutions will always be conditioned by the context in which they are found. For instance, there are significant differences between traditional or low-tech districts and high-tech districts which offer technologically more advanced products and services. Thus, while for the second category there is a great deal of theoretical and academic evidence that supports the idea that institutions act as leader actors in processes of innovation and improvement, in districts which operate in traditional sectors there is a shortage of research that analyzes the role played by institutions in these low-tech districts. To fill this gap in the literature, we aim with this work to analyze the links established by the companies of two industrial districts, with different levels of innovation activity, with local institutions. We especially analyze the intermediary and pollinating function that these institutions can have within these districts. We have applied Social Network Analysis techniques, analyzing the structure and properties of networks in the district as well as the role played by institutions. Our aim is to contribute to the debate by establishing a way to measure the flows of information and knowledge between companies and local institutions in two different districts through a social network analysis. The results obtained are of particular interest and are in contrast with the more traditional view that assumes a positive association between the companies’ opportunities for learning and the cohesion of the network. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1521&r=sbm |
| By: | Emanuele Fabbri; Luciana Lazzeretti |
| Abstract: | Recently at the European level the theme of innovation has been further fostered with the Smart Specialization Strategy underlined within the COM(2010) 553 “Regional policy contributing to smart growth in Europe 2020â€. The aim of this study is to investigate the co-evolutive dynamics of the technological transfer processes at regional level, and in particular the issue of transversality and bases of knowledge between networks according to an evolutionary perspective. Transversality is analysed considering networks’ differences and proximities in terms of industry of application, applied technology, and local dimensions of relationships. In order to analyze these phenomena, we apply the Social Network Analysis to investigate the structural features of the space of relations and relational flows, and to roles and attributes of the universe of the co-funded actors. The structural analysis of the relations’ system (centrality, closeness, betweenness, local dimension) has been analyzed across five regional initiatives, studying over 150 networks and over 1300 co-funded actors. Relations between and within networks have been normalized and the role of specific agents has been underlined with regards to transversality dynamics. As conclusion, policy implications can be drawn, in particular as far as supply-led and demand-led innovation policy. The study is structured as follows. After the introduction describing the context of regional innovation policies over the last Regional Planning period (SPD 2000-2006), the first paragraph describes the main characteristics of the concept of transversality, with connections to RIS model and innovation networks. The second paragraph describes the Social Networks Analysis methodology used to study the evolutionary process of agglomeration with regards to bases of knowledge and transversality. The third paragraph deals with the results of the analysis and the fourth paragraph presents conclusive remarks on policy implication in terms of industrial policies. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p507&r=sbm |
| By: | Fabio Sforzi; Silvia Lombardi; Flavio Verrecchia |
| Abstract: | Chinese migration flows represent a relatively new phenomenon in Italy. Its entrepreneurial nature is reflected in massive flows Chinese businessman employed both in manufacturing and commercial activities, with a dense concentration in correspondence of some industrial districts. The aim of the paper is to shed some light on current Chinese specialization of economic activities and localization across Italian regions and industrial districts, to test interpretative research hypothesis on Chinese entrepreneurship models and identify agglomeration forces underlying the emergence of so-called Chinese ethnic businesses. Some reflections on the manufacturing and commercial attitude of Chinese entrepreneurship will also be considered. The utilization of native-Chinese entrepreneurs as unit of observation represents an innovative methodological contribution based on ASIA-ISTAT archives. The exercise of explorative analysis based on data processing and spatial analysis will finally highlight business migration patterns, which represent new socio-economic challenges for Italian industrial districts |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p626&r=sbm |
| By: | Maksim Belitski; Julia Korosteleva |
| Abstract: | We investigate variation in entrepreneurial activity across 98 Eastern Neighbourhood cities. The aim of study is twofold: to bridge the city-level gap in empirical research on entrepreneurship in the Eastern Neighbourhood urban areas; to focus on urban heterogeneity in entrepreneurship unlike regional level studies which deal both with urban and rural areas where entrepreneurial activity has different characteristics. Finally, in accordance with urban incubator hypothesis the incidence of entrepreneurship is higher in urban agglomerations. To measure entrepreneurship a number of small businesses is used which has been widely used in a number of studies for capturing entrepreneurial activities. We employ the System GMM estimator to establish our model, which is determined by the need to address some econometric problems, including the problem of potential endogeneity of some of our regressors; the presence of predetermined variables, namely the lagged dependent variable; the presence of fixed effects which may be correlated with the repressors; finite sample. We find that the heterogeneity in entrepreneurship is largely explained by the agglomeration effects and city socio-economic characteristics such as level of poverty. On the one hand this is puzzling, as the general perception of the nature of entrepreneurial activity in these countries is that it is necessity-driven. On the other hand, the role of the government and social benefits still seem to play an important role in the countries of transition discouraging individuals from considering entrepreneurship as a way out of poverty. We fail to support the hypothesis of Moscow proximity as an important driver for small business activity in these cities. At the same time our findings support capital-city hypothesis as an incubator for business start-ups. Unfortunately, the level of capital stock and criminality add little in explaining the variation of entrepreneurship. We also do not find any robust effect of transition reforms, including small-scale privatisation, banking transformation and business regulation on entrepreneurial entry in the Eastern Neighbourhood cities. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p288&r=sbm |
| By: | Antonio Fuster Olivares; Jose Miguel Giner Pérez; MªJesús Santa MarÃa Beneyto |
| Abstract: | In recent years, several contributions have been focused on a new sort of productive systems that share some characteristics with Marshallian industrial districts. These contributions have analysed the competitiveness of these new areas and how have been promoted by policy makers. In this line, the Marshallian concept of industrial district has been increasingly related to high technology and innovation in order to analysis technological districts or clusters. The aim of this research is to show how these new areas have characteristics are not similar to those shown by traditional industrial districts. Therefore, framework and techniques for analysis that have been traditionally used for industrial districts must be adapted for identifying technological districts. Specifically, some reflections about the framework analysis of sector and spatial units are introduced in the first part of this research as well as those techniques that can be useful to identify and analyse technological districts. Next, the analysis is focused on the identification of technological districts in Spain. A multivariate analysis will be applied to calculate a synthetic index that will be used to identify those areas with a high degree of specialization in high and medium technology activities. This synthetic index will collect data about those technological activities that are involved not only in manufacturing but also in activities of innovation and R&D. Until now, there have been not many attempts to identify technological clusters through the application of quantitative methodologies; therefore, the purpose of this research is to contribute to the enhancement of knowledge about these areas in Spain. Keywords: technological districts, clusters, location, spatial agglomerations. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1541&r=sbm |
| By: | Manuel Lopez-Estornell |
| Abstract: | ABSTRACT The dissemination of knowledge in industrial districts (ID) and clusters has often been linked to the existence of a specific tacit knowledge. Thus, the companies belonging to ID specialization sector might sustain a distinctive competitive advantage against isolated firms. However, the observation of technological changes in recent decades and the presence of ID whose technological intensity has dramatically increased in the same period suggest the existence and need for codified knowledge in these agglomerations. As result of tacit knowledge decline, the economic performance of ID could move backwards, given the greater ease to imitate and reproduce their contextual knowledge by competitor firms located in not district areas. The paper discusses the above assumptions, suggesting the existence of combinations/hybridizations of both types of knowledge in ID, which we have named locational-translational knowledge. This third type of knowledge could explain the maintenance of ID contextual advantages even in presence of higher doses of codified knowledge. This would require the presence of agents acting as interfaces able to absorb new pieces of codified knowledge in order to combine them with local knowledge for adjusting the specific needs of ID. However, we argue the existence of several constraints, such as the size of 'creative market district’, in ID which may require the opening of ID to knowledge imported from academic institutions and other formal research organizations, in contrast with autarky or isolation suggested by tacit knowledge. Finally, an analysis of the ID evolution enables us to appreciate that the process of absorption, combination and dissemination of external knowledge may have existed throughout the life cycle of ID but supported, at each stage, for different institutional agents: the 'impannatore', the 'cappofiliera' firm and, lastly, for formal knowledge-oriented institutions such as the above referred. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p368&r=sbm |
| By: | Mariasole Bannò; Celeste Amorim Varum; Valentina Morandi |
| Abstract: | This paper investigates empirically determinants of regional growth. The scant literature that exists indicates that a region’s economic growth depends to a large extent on several features of the regions themselves, which evolve slowly over time. Our results contribute to this set of literature, accounting also for policy variables, which have been by far neglected. Indeed, due to numerous market failures, measures to promote innovation and internationalization have been prominent in government policies in the last decade. This follows because, there is a consensus among academics, policy makers and practitioners that innovation and internationalization has become increasingly important for the growth of regions and countries. The effect of such ad hoc policy measures by home governments to promote innovation and internationalization has scarcely been studied, and existing studies addressing this issue have mainly a national focus. Despite the clear theoretical justification for the public support, policy makers ask for robust empirical evidence on these matters. This paper contributes to this end. The novelty of the study is in the emphasis on the impact of public policy tools (for innovation and internationalization), and on the coordination between them, upon regional growth. The study is conducted for the 20 Italian regions over the period 1998 to 2008. It tests not only the importance of regional characteristics but also the effects of public policy measures upon the regional economic growth. We focus in specific in the role of innovation and internationalization policy related measures. The results reveal the importance of regional characteristics and also of policy measures. The empirical findings are in line with the theoretical hypotheses: public incentives are key for promoting growth, and they have to be seen in the broader context of the determinants of regional growth. The paper also derives conclusions regarding the interrelationship between policies for innovation and for internationalization. Moreover, the allocation of incentives does not seem to help counterbalance the regional asymmetry, and the global processes and challenges are likely to strengthen the gap between regions. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p457&r=sbm |
| By: | Fabio Manca; Giuseppe Piroli |
| Abstract: | The aim of the paper is to test the Benhabib and Spiegel (2005) productivity (TFP) catch-up framework on European regions. Differences in the stock of human capital across regions are hypothesized to be the cause of differences in the speed by which follower regions converge and catch-up with the technology frontier. We find robust empirical evidence for this hypothesis. Also, we find evidence of complementarities between R&D expenditures and human capital accumulation for which R&D impacts TFP growth as long as a critical mass for the stock of human capital is reached. The results are robust to sectoral disaggregations and to the choice of a country or sectoral specific leader in the TFP gap computation and to control for spatial dependence across European regions. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p816&r=sbm |
| By: | Helena Santos-Rodrigues; Pedro Figueroa; Carlos Maria Jardon |
| Abstract: | The intellectual capital is increasingly considered a major issue on the management and organization research and a source of competitive advantage. Although there are different models and approaches that try to identify the effect of intellectual capital on firm performance, there’s, also a lack of evidence and consensus. Based on that evidence, this paper focuses on the influence of the structural capital on the product- process and management innovativeness of the firm. A global model including the variables used in the previous literature is used and we establishes hypotheses for testing this model and use statistic technique to estimate the parameters of the model in a sample. To do so, we use a survey from 68 firms working on the auto components sector, established in the Northern Spain and Northern Portugal. We found firstly, that innovativeness has two main dimensions, perfectly differentiated, the product-process innovation and the management innovation; secondly that the structural capital dimensions influences differently each type of innovation capacity (innovativeness). We also concluded that the structural capital of the automotive firms based on the euro region Galicia (Spain) Northern Portugal influences positive and directly the management innovativeness. These results highlight the importance of the structural capital as well as highlight the main dimensions that influence the innovativeness, and more broadly, the value of intellectual capital as a competitive advantage in contemporary time. Moreover, point out the different character of product-process and management innovativeness. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1386&r=sbm |
| By: | Augusto Cusinato; Fabiano Compagnucci |
| Abstract: | The spatial implications of fordist and district-based patterns of development have had a profound effect on the debate about the role of the city. While the city is reputed to be the crucial provider of basic public goods within the fordist model, its role seems more nuanced, if not disputable, when the district model prevails. This disregard for the city is probably due (a) to the fact that the revival of the debate on marshallian districts has placed strong emphasis on the agglomeration economies internal to the districts themselves, while relatively omitting the urban ones, when not emphasising the burden of urban diseconomies; (b) to the countryside roots of most district pioneers. The quarrel was further fuelled with the advent of ICTs, the fragmentation of the productive processes and the possibility of displacing phases at a global level. The paper argues that this is only the early part of the history. The advent of ICTs has had not only functional although important consequences on the internal organisation of firms and industry and on economic geography as a whole; it has also, however, made innovation and knowledge ? rather than cost-saving policies ? the crucial drivers of the competitiveness of firms and local economic systems. The notion of knowledge has profoundly changed too, and the main change consists in the shift that is occurring from Learning I to Learning II, that is from the “production and accumulation†of knowledge according to pre-established codes, to its “generation and articulation†thanks to an endless reshaping of cognitive codes. On this prospect, while firms, places and regions are increasingly conceptualised as Learning II milieus, cities are proving to be a crucial and irreplaceable milieu for knowledge generation. As a consequence, it is becoming necessary to reassess the relationships between industry and the city. Within this new situation, industrial districts may suffer a severe condition of marginality from the central driver of knowledge generation, owing to their lack of internal competences in dialoguing with the city, and/or the lack of suitable mediators. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p237&r=sbm |
| By: | Dan Rickman; Belal Fallah; Mark Partridge |
| Abstract: | This paper examines the spatial pattern of U.S. county employment growth in high-tech industries. The spatial growth dimensions examined include industry cluster effects, urbanization effects, proximity to a college, and proximity in the urban hierarchy. Growth is examined for overall high-tech employment and for employment in various high-tech sectors. Econometric analyses are conducted for a sample of all counties and for metropolitan and non-metropolitan counties separately. Among our primary findings, we do not find evidence of positive localization or cluster growth effects, generally finding negative growth effects. We instead find some evidence of positive urbanization effects and growth penalties for greater distances from larger urban areas. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p518&r=sbm |
| By: | Fernando Rubiera Morollón; Mario Polèse |
| Abstract: | The spatial distribution of employment in service industries is compared for Spain and Canada for nine (9) industry classes. The empirical and theoretical literature on modern services stresses the importance of agglomeration economies for high-order services. The relationship between city-size and location is examined with emphasis on cases that deviate from predicted patterns. The results for Spain and Canada reconfirm the weight of city-size as a determinant of location for high-order services. However, once one goes beyond this fairly predictable result, national differences in geography, institutions, and development come to the fore, making generalizations more difficult. Unlike most manufacturing industries, the definition and the spatial behavior of many service sectors is highly sensitive to institutional factors, creating unique patterns largely fashioned by national context. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p209&r=sbm |