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on Small Business Management |
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Issue of 2012‒01‒03
thirteen papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Erik Stam; Neil Thompson; Andrea Herrmann; Marko Hekkert |
| Abstract: | Innovative high-tech small and medium sized enterprises (SMEs) are thought to be drivers of economic renewal and growth. However, due to their limited size, SMEs face two fundamental innovation barriers: the risk that other organizations appropriate the returns to the newly created knowledge by SMEs (knowledge leakage), and a lack of understanding and recognition of their business on the part of potential stakeholders (legitimacy deficits). Based on a panel study of 196 SMEs this paper shows that biotech, ICT and clean tech firms choose different strategies to deal with knowledge leakage and legitimacy deficits. To prevent knowledge leakage, high-tech SMEs are very selective in choosing their R&D partners and collaborate with basic rather than applied technology developers. Furthermore, to gain organizational legitimacy, high-tech SMEs pursue activities that focus not only on product development but also on generating awareness and understanding of their technologies. |
| Date: | 2011–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201115&r=sbm |
| By: | José García-Quevedo (Barcelona Institute of Economics - University of Barcelona, Barcelona); Gabriele Pellegrino (Barcelona Institute of Economics - University of Barcelona, Barcelona; Università Cattolica del Sacro Cuore, Piacenza and Milano); Marco Vivarelli (Università Cattolica del Sacro Cuore, Piacenza and Milano; IZA, Bonn; SPRU, University of Sussex, Brighton) |
| Abstract: | This paper examines the determinants of young innovative companies’ (YICs) R&D activities taking into account the autoregressive nature of innovation. Using a large longitudinal dataset comprising Spanish manufacturing firms over the period 1990-2008, we find that previous R&D experience is a fundamental determinant for mature and young firms, albeit to a smaller extent in the case of the YICs, suggesting that their innovation behaviour is less persistent and more erratic. Moreover, our results suggest that firm and market characteristics play a distinct role in boosting the innovation activity of firms of different age. In particular, while market concentration and the degree of product diversification are found to be important in boosting R&D activities in the sub-sample of mature firms only, YICs’ spending on R&D appears to be more sensitive to demand-pull variables, suggesting the presence of credit constraints. These results have been obtained using a recently proposed dynamic type-2 tobit estimator, which accounts for individual effects and efficiently handles the initial conditions problem. |
| Keywords: | R&D, innovation, Young Innovative Companies (YICs), dynamic type-2 tobit estimator. |
| JEL: | O31 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2011-20&r=sbm |
| By: | Elif Bascavusoglu-Moreau (Centre for Business Research, Judge Business School, University of Cambridge); Mustafa Colakoglu (TTGV Turkey Technology Development Foundation) |
| Abstract: | The purpose of this paper is to explore the determinants of innovative capabilities in an emerging country context. We focus more particularly on the impact of recent changes in SME policies in Turkey. Using a unique firm-level survey conducted on 45.000 SMEs, innovative capabilities of firms are assessed at three different levels; their innovation efforts, innovation decision and innovative intensity. We analyze and compare the impact of two different incentive schemes; one a purely financial support, and the second, consultancy and technological assistance coupled with financial facilities. Whereas all firms seem to benefit from financial support, only less innovative firms take full advantage of the advisory services. Overall, the determinants of innovative capabilities depend considerably on the type of firms, suggesting the need for differentiated policy measures. |
| Keywords: | Small and Medium-Sized Enterprises (SMEs), technological capability building, innovation, SME policies |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:1105&r=sbm |
| By: | Kato, Masatoshi; Okamuro, Hiroyuki; Honjo, Yuji |
| Abstract: | Using a sample from an original questionnaire survey in Japan, this paper explores whether and how founders’ human capital affects innovation outcomes by start-ups. The results provide evidence that founders with greater human capital are more likely to yield innovation outcome. However, because certain types of founders’ human capital may boost R&D investment, which possibly results in innovation outcomes, we estimate the determinants of innovation outcomes by an instrumental variable probit model taking into account the endogeneity of R&D investment. Our findings suggest that specific human capital for innovation, such as founders’ prior innovation experience, is directly associated with innovation outcomes after start-up, while generic human capital, such as founders’ educational background, indirectly affects innovation outcomes through R&D investment. |
| Keywords: | Start-up, Founder, Human capital, Innovations, R&D investment |
| JEL: | L24 M13 O31 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2011-11&r=sbm |
| By: | Verònica Gombau (Universitat Rovira i Virgili, Departament d’Economia, CREIP, XREAP, Grup de Recerca d’Indústria i Territori, Av. Universitat, 1, 43204 Reus, Spain); Agustí Segarra (Universitat Rovira i Virgili, Departament d’Economia, CREIP, XREAP, Grup de Recerca d’Indústria i Territori, Av. Universitat, 1, 43204 Reus, Spain) |
| Abstract: | This paper analyses whether a firm’s absorptive capacity and its distance from the technological frontier affect the choice between innovation and imitation in innovative Spanish firms. From an extensive survey of 5,575 firms during the 2004-2009 period, we found two significant results. With regard to the role of absorptive capacity, the empirical evidence shows that when innovative firms have difficulties in accessing external information and hire skilled workers, their innovative capacity is reduced. Meanwhile, with regard to distance from the technological frontier, the firms that reduce this gap manage to increase their innovative capacity at the expense of imitation. To summarise, when we studied firms’ absorptive capacity and their relative position to the technological frontier in tandem, we found that the two factors directly affected firms' ability to innovate or imitate. |
| Keywords: | R&D sources, innovation and imitation strategies, absorptive capacity, technological frontier, ordered probit |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2011-22&r=sbm |
| By: | Pelger, Ines |
| Abstract: | This paper analyzes gender differences in the investment activity of German small and medium sized enterprises (SMEs). The empirical analysis is carried out on a sample of firms drawn from the KfW Mittelstandspanel, a representative survey of German SMEs for the period from 2003 to 2009. We find evidence that female-owned firms are less likely to invest and if they invest, then their average investment rate is lower. These differences cannot entirely be explained by firm or owner characteristics. Furthermore, women’s investment is less sensitive to cash flow, which indicates that it is unlikely that their lower investment is driven by difficulties in acquiring external finance. An analysis of stated investment goals reveals that women have different preferences and attitudes towards investment. They indicate to a lesser extent aspiring and growth-orientated investment goals like sales increase, innovation/R&D or implementation of new products. |
| Keywords: | Gender Economics; Female Entrepreneurship; Investment |
| JEL: | G11 J16 L26 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:muenec:12526&r=sbm |
| By: | Marco Frey (Istituto di Management - Scuola Superiore Sant’Anna, Pisa); Fabio Iraldo (Istituto di Management - Scuola Superiore Sant’Anna, Pisa); Francesco Testa (Istituto di Management - Scuola Superiore Sant’Anna, Pisa) |
| Abstract: | In the last years attention has increased to the eco-innovation topic. Empirical studies have demonstrated that innovating firms grow faster, have higher productivity and are more profitable than their less innovative counterparts (Geroski et al., 1993; Roper and Hewitt-Dundas, 1998). Drawing upon a database of over 300 enterprises operating within eight defined green production chains working in the Province of Milan, this paper assesses the determinants and drawbacks of innovation. In particular, using an econometrical approach, we tested the following propositions: a) small dimension of enterprises is an obstacle to their innovation power; b) The adoption of an international strategy of production and commercialisation is an opportunity and a stimulus to eco-innovation; c) cooperation with research partners can help SMEs to overcome difficulties and help them to develop and offer eco-sustainable products and services. The econometric analysis shows a positive impact of dimension and level of internationalization on innovation capabilities. In addition, cooperation with research centers and access to capital market are positively related with effective innovations. |
| Keywords: | SME, eco-innovation, supply chain, green economy. |
| JEL: | M20 Q55 |
| Date: | 2011–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:sse:wpaper:201103&r=sbm |
| By: | Krogmann, Yin; Schwalbe, Ulrich |
| Abstract: | This paper analyses a large database on inter-firm R&D cooperation formed in the pharmaceutical biotechnology industry during the period 1985 - 1998. The results indicate that network size largely grows, whereas the density of the network declines during the periods. In the network analysis that emphasizes individual structural positions, the empirical results show that small biotechnological companies had a crucial bridging role for the large pharmaceutical firms in the second half of the 1980s. In the 1990s, the bridge role of biotechnology companies became less important and established pharmaceutical companies developed into dominant start players with many collaborators while holding central roles in the research network. The current analysis also shows that degree-based and betweenness-based network centralization are both low implying that the overall positional advantages are relatively equally distributed in the inter-firm R&D network of the pharmaceutical biotechnology industry. -- |
| Keywords: | R&D networks,pharmaceutical biotechnology,network analysis,conceptual centrality,network visualization software |
| JEL: | C88 D85 L24 L65 O32 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:382011&r=sbm |
| By: | Lundberg, Johan (Department of Economics, Umeå University) |
| Abstract: | The main issue in this paper is to analyze to what extend academic research at universities and university colleges have any effects on the regional growth pattern. In particular, we analyze the dynamic effects of research activities at universities and university colleges by including the number of dissertations at each university or university college in a Barro and Sala-i-Martin type (Barro and Sala-i-Martin (1992)) of empirical growth model. Moreover, we control for other potentially important determinants of local growth such as local income taxes, local labor market conditions and demographic factors. Based on a data set covering the Swedish municipalities during the period 1990-2007, our results suggests that academic research only have minor effects on the regional growth pattern. One potential explanation for this result is that even though academic research might have a positive effect on economic growth at the national level, the in many respects small municipalities in Sweden where the main part of the universities and university colleges are located do not have the resources in terms of infrastructure needed to fully benefit from academic research. |
| Keywords: | Net migration; income; convergence; academic research; human capital; spatial effects |
| JEL: | I23 I25 I28 O15 O38 R11 |
| Date: | 2011–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0835&r=sbm |
| By: | Victoria Castillo; Alessandro Maffioli; Sofía Rojo; Rodolfo Stucchi |
| Abstract: | This paper presents the evaluation of the Enterprise Restructuring Support Program in Argentina. The aim of the program was to increase the competitiveness of small and medium-sized enterprises by cofinancing technical assistance that can be classified as either support for process innovation or support for product innovation. Although these types of programs do not primarily aim to create jobs, they are implemented assuming that they do, or at least that they do not destroy jobs. This paper tests this assumption. It compares the impact of each type of support on employment and the type of employment measured by the wages paid by firms to their employees. To control for self-selection into the program, propensity score matching and difference in differences were combined. The study found that by supporting both process and product innovation-related activities, the program was able to create more and better jobs. The effect on wages was also found to be higher when supporting product innovation activities. |
| Keywords: | Private Sector :: SME, Labor :: Workforce & Employment, Science & Technology :: Research & Development, Science & Technology :: New Technologies, innovation, employment, wages, policy evaluation, SMEs, Argentina |
| JEL: | D2 J23 L8 O31 O33 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:60458&r=sbm |
| By: | Roy Thurik; David Audretsch; Erik Stam |
| Abstract: | A major shift in the organization of developed economies has been taking place: away from what has been characterized as the managed economy towards the entrepreneurial economy, or what Kirchhoff (1994) has called dynamic capitalism. In particular, the empirical evidence provides consistent support that (1) the role of entrepreneurship has significantly increased, and (2) a positive relationship exists between entrepreneurial activity and economic performance. However, the factors underlying this observed shift have not been identified in a systematic manner. The purpose of this paper is to suggest some of the factors leading to this shift and implications for public policy. In particular, we find that technological change is a fundamental catalyst underlying the shift from the managed to the entrepreneurial economy. However, it was not just technological change but rather involved a multitude of factors, ranging from the demise of the communist system, increased globalization, new competition for multinational firms and higher levels of prosperity. Recognition of the causes of the shift from the managed to the entrepreneurial economy implies a shift in public policy directions. Rather than to focus of directly and exclusively on promoting new firms and small firms, it may be that the current approach to entrepreneurship policy is misguided. The priority should not be on entrepreneurship policy but rather a more pervasive and encompassing approach, policy consistent with an entrepreneurial economy. |
| Date: | 2011–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201113&r=sbm |
| By: | Juan A. Mañez (Universidad de Valencia and ERICES); María E. Rochina-Barrachina (Universidad de Valencia and ERICES); Amparo Sanchis (Universidad de Valencia and ERICES); Juan A. Sanchis (Universidad de Valencia and ERICES) |
| Abstract: | In this paper we explore in depth the effect of process innovations on total factor productivity growth for small and medium enterprises (SMEs), taking into account the potential endogeneity problem that may be caused by self selection into these activities. First, we analyse whether the ex-ante most productive SMEs are those that start introducing process innovations; then, we test whether process innovations boost SMEs productivity growth using matching techniques to control for the possibility that selection into introducing process innovations may not be a random process. We use a sample of Spanish manufacturing SMEs for the period 1991-2002, drawn from the Encuesta sobre Estrategias Empresariales. Our results show that the introduction of process innovations yields an extra productivity growth, and that the life span of this extra productivity growth lasts for only one period. |
| Keywords: | Process innovations, TFP, stochastic dominance, matching techniques |
| JEL: | C14 C21 D24 L1 L25 O3 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1125&r=sbm |
| By: | Kristian Nielsen; Saras D. Sarasvathy |
| Abstract: | The purpose of this study is to contribute to the movement in entrepreneurship research from explanations of performance based exclusively on traits or luck to those based on skills and learning. Both conventional wisdom and extant research in this regard argue for the importance of persistence after failure and learning from failure. Our study of 1,789 entrepreneurs who re-entered entrepreneurship after a failed venture supports both persistence and learning, but with a twist. Persistence paid off for entrepreneurs who already had certain kinds of human and social capital, even when controlling for unemployment record and opportunity costs. Yet the individuals with those human capital and social capital characteristics were not as likely to become re-starters. A Type I error, therefore, appears to hinder the development of habitual entrepreneurship. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:11-12&r=sbm |