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on Small Business Management |
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Issue of 2012‒07‒23
fourteen papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Bronwyn H. Hall (University of California, Berkeley); Francesca Lotti (Bank of Italy); Jacques Mairesse (CREST-INSEE) |
| Abstract: | The paper investigates R&D and ICT investment at firm level, assessing their relative importance and the extent to which they are complements or substitutes. We use data on a large unbalanced panel sample from four consecutive waves of a survey of Italian manufacturing firms, together with a version of the model developed by Crepon et al., 1998, modified to include ICT investment and R&D as the two main inputs of innovation and productivity. We find that R&D and ICT are both strongly associated with innovation and productivity, with R&D being more important for innovation and ICT for productivity. We explore their possible complementarity in innovation and production but find none, although there is complementarity between R&D and worker skill in innovation. |
| Keywords: | R&D, ICT, innovation, productivity, complementarity, Italy |
| JEL: | L60 O31 O33 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_874_12&r=sbm |
| By: | Crescenzi, Riccardo; Rodríguez-Pose, Andrés; Storper, Michael |
| 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: | China; Geography; India; Innovation; R&D; Regions; Socioeconomic conditions |
| JEL: | O32 O33 R11 R12 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9038&r=sbm |
| By: | Dixon, Jay<br/> Rollin, Anne-Marie |
| Abstract: | This paper examines whether Canadian firms of different sizes (in terms of employment) grow at different rates year-on-year. The data are from Statistics Canada's Longitudinal Employment Analysis Program and cover the 1999-to-2008 period. The methodology is similar to that used by Haltiwanger, Jarmin and Miranda (2010) for the United States: controls are used for firm age, and possible bias from short-term regression to the mean is removed by sizing firms according to their average number of employees in both previous and current years. |
| Keywords: | Business performance and ownership, Entry, exit, mergers and growth, Small and medium-sized businesses |
| Date: | 2012–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp1e:2012025e&r=sbm |
| By: | Karlsson, Charlie (Jönköping International Business School); Warda, Peter (Jönköping International Business School); Gråsjö, Urban (University West) |
| Abstract: | In this paper we quantitatively review the empirical literature on spatial knowl¬edge spillovers in Europe by means of meta-analysis to determine the extent to which such spillovers have been empirically documented as well as the spatial reach of these spillovers. In addition, we will apply meta-regression analysis to analyze the determinants of observed heterogeneity across and between publications. To our knowledge this is the first study of its kind. Our results show that if total local R&D expenditure in a European region increases by 1%, then the number of patents in that region, on average, increases by about 0.5%. Spatial knowledge spillovers induce a positive effect on local knowledge production, however, this effect proves to be small around 0.07%. Spatial weighting regime seems to matter. If R&D expenditures in other regions are weighted by distance in kilometers or minutes (instead of a binary contiguity matrix) then the spillover effect on average will be larger. Also, public R&D expenditure is found to have a lower impact on local patent production compared to the private R&D expenditure. |
| Keywords: | Knowledge spillovers; knowledge externalities; meta-analysis; Europe |
| JEL: | O32 O33 R19 |
| Date: | 2012–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0280&r=sbm |
| By: | Michael Fritsch; Michael Wyrwich |
| Abstract: | We investigate the persistence of levels of self-employment and new business formation in different time periods and under different framework conditions. The analysis shows that high levels of regional self-employment and new business formation tend to be persistent for periods as long as 80 years and that such an entrepreneurial culture can even survive abrupt and drastic changes in the politic-economic environment. We thus conclude that regional entrepreneurship cultures do exist and that they have long-lasting effects. |
| Keywords: | entrepreneurship, self-employment, new business formation, persistence, culture |
| JEL: | L26 R11 O11 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1214&r=sbm |
| By: | Garcia Alvarez-Coque, J.M.; Lopez-Garcia Usach, T.; Sanchez Garcia, M. |
| Abstract: | Innovation behaviour of agri-food firms depends on firm structure but also on the characteristics of the territory in which they are established. Spatial considerations are important to determine the propensity of a firm to innovate. Using a database of innovative and non-innovative agro-food firms located in the Autonomous Community of Valencia, the paper assesses the effect of firms’ variables and also the territorial features such as urban/rural areas, percentage of native population, education level of population and distance to technological institutes. Results show that rural areas are not a handicap for innovation but improved access to training services and technological institutes have a significant influence in innovation. |
| Keywords: | Innovation, territory, rural/urban, agri-food firms, Agricultural and Food Policy, Industrial Organization, Land Economics/Use, O18, P25, Q13, Q55, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa126:126030&r=sbm |
| By: | Giulia Trombini (Department of Management, Università Ca' Foscari Venezia); Anna Comacchio (Department of Management, Università Ca' Foscari Venezia) |
| Abstract: | The study departs from the traditional view of licensing as a spot market transaction and investigates license integration with R&D partnerships, introducing the concept of licensing combination. Drawing on licensing and R&D partnership literature and adopting the Òtransactional valueÓ approach, we propose two types of antecedents Ð knowledge and dyad features Ð to investigate licensing combination. Using a dataset combining 441 original license agreements with firmsÕ patenting and market activity in the global biopharmaceutical industry, we find a substantial heterogeneity in the ways licensors and licensees jointly exploit markets for knowledge and the specific role of R&D collaboration and minority equity in inter-organizational exchange through licensing. Results show that licensing combination with R&D collaboration is likely when the licensed innovation is embryonic, the licensee is unfamiliar with the licensorÕs technology and partners have different technological backgrounds. Instead, licensing of highly specific knowledge is likely to be supported by minority equity participation on the part of the licensee. Finally, licensing is combined with both forms of partnership in case of competence distance between partners. In the light of the empirical results, four types of licensing combination are proposed for future research. |
| Keywords: | Markets for technology, Licensing combination, R&D collaboration, Minority equity participation, Knowledge transfer, Joint value |
| JEL: | O32 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:21&r=sbm |
| By: | Mircea Epure; Diego Prior; Christian Serarols |
| Abstract: | Literature highlights the importance of university spin-offs and their assistance mechanisms. However, there is little evidence on how to select and operationalize the appropriate variables for assessing this type of firms. This paper provides tools to estimate and interpret the efficiency of spinoffs embedded in university-based support mechanisms. We thus contribute to the literature in at least two ways. First, we identify the specific inputs and outputs that are required by both the organizational and regional development perspectives. Second, an application considers a unique sample of spin-offs created at Catalan universities within a regional support program. Main descriptive results indicate that many efficient spin-offs have formal technology transfer agreements and emerge from universities with more technological background. Second stage analyses show that higher levels of innovation and specific academic knowledge or experience related with the university of origin are associated with higher efficiency. |
| Keywords: | university spin-off, regional development, efficiency, entrepreneurship, technology transfer, innovation |
| JEL: | M1 R1 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:650&r=sbm |
| By: | Vásquez-Urriago, Ángela Rocío; Barge-Gil, Andrés; Modrego, Aurelia |
| Abstract: | Science and Technology Parks (STPs) are one of the most important regional innovation policy initiatives. Previous studies show that location in a Park promotes cooperation for innovation but have not investigated if they help to achieve better results from cooperation. We extend previous literature by analyzing how STPs influence the results of cooperation of Park firms and how this influence is channelled. We rely on a much larger sample of firms and STPs than previous studies and account for selection bias and endogeneity when these problems arise. Results show that location in a STP increases the likelihood of cooperation for innovation and the intangible results from cooperation with the main innovation partner, mainly due to the higher diversity of the relationship. |
| Keywords: | Science and technology parks; cooperation; innovation; effect; agglomerations |
| JEL: | R10 O30 L50 |
| Date: | 2012–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39572&r=sbm |
| By: | Byeongwoo KANG; MOTOHASHI Kazuyuki |
| Abstract: | Obtaining essential intellectual property rights (IPRs) is important for innovation competition in the network industry, where technical standardization plays a critical role in development. In this study, we empirically investigate the determinants of essential IPRs for wireless communications standards by using the patent database. More specifically, we use the technological capabilities of both the firm and the patent inventor to explain the probability of its selection as an essential IPR. In addition, we compare manufacturing firms' and non-manufacturing patentees' (NMPs) technology strategies for essential IPRs. Our results indicate that manufacturing firms accumulate their technological capability in specific technology fields, whereas NMPs cover broader technology fields to keep their dominant position in the standardization process. |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:12042&r=sbm |
| By: | MORIKAWA Masayuki |
| Abstract: | This paper uses Japanese firm-level data to analyze empirically the financial constraints in intangible investments. We estimate investment functions in which cash flow is used as a key explanatory variable. We then observe differences in the sensitivity of investments to cash flow by the type of assets, industry, firm size, and firm age. According to the estimation results, investments in intangible assets are more sensitive to internal capital compared with investments in tangible assets, suggesting the existence of market failure in the financial markets. This market failure is more serious for small- and medium-sized enterprises (SMEs) and young firms. However, policies to promote investments are concentrated on tangible assets, with the exception of research and development (R&D) investment. This paper suggests that investment tax credits and financial support for SMEs and young firms should focus more on intangible investments. |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:12045&r=sbm |
| By: | osanna Pittiglio; Filippo Reganati; Edgardo Sica |
| Abstract: | The present paper aims to test the impact of incoming Foreign Direct Investment (FDI) on local wages in the Italian manufacturing sector by using firm level data from 2002 to 2007. Results initially show the lack of wage spillovers at both horizontal and vertical level, meaning that the effects of foreign investment are completely internalized within each firm. However, when the technology gap is taken into account, we find some evidence of a non-linear relationship between gap size and wage spillover. In particular, if the technological gap between local firms and foreign companies is too large, Multinational Enterprises (MNEs) face some difficulty in interacting with domestic suppliers and customers, with the consequence that they act like monads within the host country. We therefore believe that policies favouring the attraction of inward investments, should not be of the ‘one for all’ or ‘one for always’ type, but must be strongly directed towards the sectoral and local characteristics of the host country. |
| Keywords: | Foreign Direct Investment, Multinational Enterprises, Horizontal Wage Spillovers, Vertical Wage Spillovers, Technological Gap |
| JEL: | F21 F23 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2012:i:099&r=sbm |
| By: | Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Elisabeth Bublitz (Friedrich Schiller University Jena, School of Economics and Business Administration); Alina Rusakova (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | The 40 years of socialist regime in East Germany were characterized by a massive anti-entrepreneurship policy. We investigate the reemergence of entrepreneurship in East Germany during its transformation to a market economy following the collapse of the East German state in 1989. It took about 15 years until self-employment levels in East Germany reached those of West Germany. Despite this catch up, we find a number of peculiarities in East German self-employment that appear to be a continuing legacy of the socialist period. In particular, older and better-educated East Germans have a relatively low propensity for starting an own business. Moreover, East German workers tend to have a lower variety of skills than their West German counterparts, which could explain a lower propensity for start up in the early years after reunification. Despite this socialist imprint, we also find considerable continuity in the levels of self-employment in the 1920s and those after transition to a market economy, suggesting the existence of a long-lasting regional entrepreneurship culture. |
| Keywords: | Entrepreneurship, self-employment, new business formation, transformation, East Germany |
| JEL: | L26 O11 |
| Date: | 2012–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2012-042&r=sbm |
| By: | Tobias Scholl (Schumpeter Center for Clusters, Entrepreneurship and Innovation, Frankfurt University); Thomas Brenner (Working Group on Economic Geography and Location Research, Philipps University Marburg) |
| Abstract: | We present a new statistical method that detects industrial clusters at a firm level. The proposed method does not divide space into subunits whereby it is not affected by the Modifiable Areal Unit Problem (MAUP). Our metric differs both in its calculation and interpretation from existing distanceâ€based metrics and shows four central properties that enable its meaningful usage for cluster analysis. The method fulfills all five criteria for a test of localization proposed by Duranton and Overman (2005). |
| Keywords: | Spatial concentration, localization, clusters, MAUP, distance-based measures |
| JEL: | C40 C60 R12 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:pum:wpaper:2012-02&r=sbm |