nep-sbm New Economics Papers
on Small Business Management
Issue of 2012‒07‒08
ten papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Innovative and absorptive capacity effects of education in a small open economy By Brita Bye and Taran Fæhn
  2. The territorial dynamics of innovation in China and India By Riccardo Crescenzi; Andrés Rodríguez-Pose; Michael Storper
  3. Convergence of Knowledge-intensive Sectors and the EU’s External Competitiveness By Sabine Biege; Martin Borowiecki; Bernhard Dachs; Joseph F. Francois; Doris Hanzl-Weiss; Johan Hauknes; Angela Jäger; Mark Knell; Gunter Lay; Olga Pindyuk; Doris Schartinger; Robert Stehrer
  4. Biotechnology Adoption, Industrial Structure and Its Effect on Small-Market Crops By Subramaniam, Vijay; Chambers, Orlando D.; Reed, Michael R.
  5. Exports, R&D and Productivity: A test of the Bustos-model with German enterprise data By Joachim Wagner
  6. Absorptive Capacity and Efficiency: A Comparative Stochastic Frontier Approach Using Sectoral Data By Letizia Montinari; Michael Rochlitz
  7. University Technology Transfer: How (in-)efficient are French universities? By Claudia Curi; Cinzia Daraio; Patrick Llerena
  8. Value for money? New microeconometric evidence on public R&D grants in Flanders By Czarnitzki, Dirk; Lopes-Bento, Cindy
  9. An Analysis of Productivity Performance in Spain Before and During the Crisis: Exploring the Role of Institutions By Juan S. Mora Sanguinetti; Andrés Fuentes
  10. Entrepreneurship, Social Capital, Governance and Regional Economic Development By Karlsson, Charlie

  1. By: Brita Bye and Taran Fæhn (Statistics Norway)
    Abstract: Evidence points to relatively low supply elasticities for workers skilled for research and development (R&D), which can hamper innovation and growth. Increasing the supply of R&D skills will expand an economy's innovative capacity. A simultaneous effect of increased education, which is particularly important for small, open economies, is to raise final goods producers’ capacity to absorb cross-border knowledge spillovers. In a calibrated endogenous growth model for Norway, we find that increasing the share of highly educated workers has pronounced absorptive capacity effects that partially crowd out R&D-based innovation. Both innovative and absorptive capacity expansions contribute to higher growth and welfare.
    Keywords: Absorptive capacity; Computable general equilibrium model; Endogenous growth; Human capital; Innovation; Research and Development
    JEL: O30 O41
    Date: 2012–06
  2. By: Riccardo Crescenzi; Andrés Rodríguez-Pose; Michael Storper
    Abstract: This paper analyses the geography of innovation in China and India. Using a tailor-made panel database for regions in these two countries, we show that both countries exhibit increasingly strong polarisation of innovative capacity in a limited number of urban areas. But the factors behind this polarisation and the strong contrasts in innovative capacity between the provinces and states within both countries are quite different. In China, the concentration of innovation is fundamentally driven by agglomeration forces, linked to population, industrial specialisation and infrastructure endowment. Innovative areas in China, rather than generate knowledge spillovers, seem to produce strong backwash effects. In India, by contrast, innovation is much more dependent on a combination of good local socioeconomic structures and investment in science and technology. Indian innovation hubs also generate positive knowledge spillovers to other regions.
    Keywords: Innovation; R&D; socioeconomic conditions; geography; regions; China; India
    JEL: R11 R12 O32 O33
    Date: 2012–06–22
  3. By: Sabine Biege; Martin Borowiecki; Bernhard Dachs; Joseph F. Francois; Doris Hanzl-Weiss (The Vienna Institute for International Economic Studies, wiiw); Johan Hauknes; Angela Jäger; Mark Knell; Gunter Lay; Olga Pindyuk (The Vienna Institute for International Economic Studies, wiiw); Doris Schartinger; Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: The share of knowledge-intensive services and products in total output and demand and in the production of advanced, but also less advanced or emerging economies, has steadily increased over time and especially so for the knowledge-intensive services. This ‘quaternization’ of the economies not only points towards the rising shares of services but also stresses the role of knowledge-intensive services and their growing importance as sources of innovation and technology and as inputs into the manufacturing process. First the study documents the important role played by services in the EU as compared to the USA and Japan. Special emphasis is given to the role of knowledge-intensive business services (KIBS). The study then stresses the role of service output of manufacturing firms, a phenomenon also termed ‘convergence process’ which so far has not received much attention in the existing literature. Further it analyses the role of knowledge-intensive business services (KIBS) with respect to their role of embodied knowledge flows and linkages between KIBS and manufacturing sectors, underpinning that services have been playing an increasing role in boosting the productivity of manufacturing sectors. Finally, the study focuses on the importance of trade in knowledge-intensive manufacturing and services (overall and KIBS in particular) regarding the competitiveness of the EU with respect to trade in services in general and trade in knowledge-intensive business services in particular.
    Keywords: knowledge intensive sectors, trade in services, service provision of manufacturing firms, inter-sectoral linkages
    JEL: C67 F14 L8 L16 O14 O33 O47
    Date: 2012–04
  4. By: Subramaniam, Vijay; Chambers, Orlando D.; Reed, Michael R.
    Keywords: Biotechnology, Technology Adoption, Biotech Firms, Small-Market Biotech Crops, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,
    Date: 2012
  5. By: Joachim Wagner (Leuphana University Lueneburg, Germany)
    Abstract: This paper presents the first empirical test with German firm level data of a hypothesis derived by Bustos (AER 2011) in a model that explains the decision of heterogeneous firms to export and to engage in R&D. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of firms with exports and R&D dominates that of exporters without R&D, which in turn dominates that of firms that neither export nor engage in R&D. These results are in line with findings for Argentina. The model, therefore, seems to be useful to guide empirical work on the relation between exports, R&D and productivity.
    Keywords: Exports, R&D, productivity, Germany
    JEL: F14
    Date: 2012–06
  6. By: Letizia Montinari (IMT Lucca Institute for Advanced Studies); Michael Rochlitz (IMT Lucca Institute for Advanced Studies)
    Abstract: In this paper, we investigate differences in and determinants of technical efficiency across three groups of OECD, Asian and Latin American countries. As technical efficiency determines the capacity with which countries absorb technology produced abroad, these differences are important to understand differences in growth and productivity across countries, especially for developing countries which depend to a large extend on foreign technology. Using a stochastic frontier framework and data for 22 manufacturing sectors for 1996-2005, we find notable differences in technical efficiency between the three country groups we examine. We then investigate the effect of human capital and domestic R&D, proxied by the stock of patents, on technical efficiency. We find that while human capital has always a strongly positive effect on efficiency, an increase in the stock of patents has positive effects on efficiency in high-tech sectors, but negative effects in low-tech sectors.
    Keywords: absorptive capacity, efficiency, stochastic frontier analysis
    JEL: C33 O14 O33
    Date: 2012–06
  7. By: Claudia Curi; Cinzia Daraio; Patrick Llerena
    Abstract: This paper assesses the efficiency of the technology transfer operated by the French university system and its main determinants. The analysis is based on a detailed and original database of 51 TTOs, categorized by type of university, over the period 2003-2007. Overall, we find low-level of efficiency and both intra-category and inter-categories efficiency variation. The analysis of determinants shows that French TTOs efficiency depends extensively on the nature of the category (with universities specialised in science and engineering resulting the most efficient ones), on institutional and environmental characteristics. We found that both the seniority of TTO and size of the university have a positive effect. In terms of environmental variables, the intensity of R&D activity (both private and public) has a positive impact; however, in terms of growth rate, only the Private R&D activity seems to be the main driver. Lastly, having a medical school related to a hospital is a source of inefficiency.
    Keywords: Technology Transfer Offices (TTOs), French University System, Technical Efficiency, DEA, Bootstrap.
    JEL: C34 C44 D24
    Date: 2012
  8. By: Czarnitzki, Dirk; Lopes-Bento, Cindy
    Abstract: A significant amount of money is spent on programs to stimulate innovative activities. In this paper, we review the effects of a specific government-sponsored commercial R&D program from various angles. We start by evaluating whether we find positive effects of subsidies on R&D investment and R&D employment. Then, we analyze how the observed effects of subsidies on R&D intensity and employment vary over time, vary if the firm receives also support from other sources, vary depending on how many supported projects a single firm has at the same time or vary if a firm gets support consecutively. Finally, we estimate the macroeconomic impact of these grants in terms of R&D employment. We conclude that (i) the policies are not subject to full crowding out, (ii) the treatments effects are stable over time, (iii) receiving subsidies from other sources in addition to the program under evaluation does not decrease the estimated treatment effect, and (iv) receiving grants repeatedly does not decrease the magnitude of the treatment effects either. Using a back-of-the envelope calculation, we estimate that, on average, five R&D jobs are created (or maintained) per supported project in the Flemish economy. --
    Date: 2012
  9. By: Juan S. Mora Sanguinetti; Andrés Fuentes
    Abstract: The Spanish economy experienced significantly weaker labour productivity growth than other OECD economies and failed to catch up with the most advanced economies in the period 1996-2007. In recent years labour productivity growth has accelerated, but this recovery is likely to be due to cyclical and temporary factors. The aim of this paper is to identify what factors weigh on weak trend productivity growth. The relatively weak performance largely reflects the low growth of total factor productivity within a wide range of sectors, with very limited impact of composition effects, while the capital stock and educational attainment of the workforce have grown relatively strongly. The paper investigates the role of some institutions in deterring innovation, competition and the growth of successful firms. It argues that Spain needs to have a more flexible labour market and collective bargaining system to improve productivity performance. Productivity performance would also benefit from a more flexible business environment in such a way that both entry and exit of firms in the economy are less costly, including a reform of bankruptcy legislation, steps to make civil judicial procedures more efficient and a greater reduction of barriers to entry into the retail trade sector.<P>Analyse de la performance de la productivité en Espagne avant et durant la crise : Le rôle des institutions<BR>L’économie espagnole a enregistré une croissance nettement plus faible de la productivité du travail que les autres économies de l’OCDE et elle n’a pas réussi à rattraper les économies les plus avancées sur la période 1996-2007. Ces dernières années, la croissance de la productivité du travail s’est accélérée, mais ce redressement est vraisemblablement dû à des facteurs conjoncturels et temporaires. L’objet de cette étude est d’identifier les facteurs qui pèsent sur la croissance de la productivité. La faiblesse relative de la performance reflète en grande partie la médiocre progression de la productivité totale des facteurs dans un large éventail de secteurs, avec un impact très limité des effets de composition, alors que le stock de capital et le niveau de formation de la main-d’oeuvre ont assez fortement progressé. Cette étude examine dans quelle mesure certains dispositifs institutionnels ont joué contre l’innovation, la concurrence et le développement d’entreprises prospères. L’Espagne, est-il observé, doit pouvoir s’appuyer sur un marché du travail et un système de négociations collectives plus flexibles pour améliorer sa performance en termes de productivité. La performance sur le plan de la productivité bénéficierait aussi de davantage de flexibilité dans l’environnement des entreprises, de façon qu’aussi bien les entrées que les sorties d’entreprises de l’économie soient moins coûteuses, ce qui suppose une réforme de la législation sur les faillites, des mesures pour rendre les procédures judiciaires au civil plus efficientes et un abaissement plus marqué des barrières à l’entrée dans le secteur du commerce de détail.
    JEL: J24 K0 O4
    Date: 2012–06–21
  10. By: Karlsson, Charlie (Jönköping International Business School)
    Abstract: In this paper, we discuss three factors of critical importance for regional economic develop-ment, namely entrepreneurship, social capital and governance. We conclude firstly that the relationships between regional entrepreneurship, regional social capital, regional governance and regional economic development are complex and interdependent. Secondly, to influence these factors and the relationship between them policy-makers must have a long-term per-spective and be both patient and persistent in their efforts. It is our hope that this paper pro-vides both a somewhat better understanding of the relationships between regional entrepre-neurship, regional social capital, regional governance and regional economic development and some help to national and regional policy-makers in formulating and implementing the proper long-term regional policies needed.
    Keywords: Regional economic development; entrepreneurship; social capital; governance
    JEL: D70 G38 L26 R58
    Date: 2012–06–13

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