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on Small Business Management |
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Issue of 2012‒09‒30
six papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Nabavi, Pardis (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Bazzazian , Navid (Strategy and Business Policy, HEC, Paris) |
| Abstract: | This paper analyzes how different innovation-strategies of incumbent firms affect the quantity and quality of their entrepreneurial spawning. Using a data set that comprises almost all patent applications by firms in Sweden for the period 1997-2008, we distinguishes between firms that are engaged in innovation activities persistently, occasionally and not at all. We do not find any statistically significant evidence that the chance of survival for a new firm can be linked back to the innovation strategy of the parent firm. In contrast, we provide strong evidence that employee start-ups from persistent innovators are more productive during the first five year on the market than other new ventures, everything else equal. |
| Keywords: | Patent; R&D; Spinoff; Productivity; Employment |
| JEL: | C23 O31 O32 |
| Date: | 2012–09–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0282&r=sbm |
| By: | Tiwari, Amaresh K. (University of Liege); Mohnen, Pierre (UNU-MERIT/MGSoG, Maastricht University, and CIRANO); Palm, Franz C. (Maastricht University, and CESifo); Schim van der Loeff, Sybrand (Maastricht University) |
| Abstract: | Using a unique panel data of Dutch innovation and financial variables we empirically investigate how financing and innovation vary across firm characteristics. The study also tries to gauge the extent of market failure due to the presence of financing frictions. Our main findings can be summarized as follows. First, when firms face endogenous financial constraints, debt financing and innovation choices are not independent of firm characteristics such as age, size, and existing leverage. In the absence of financial constraints, however, firms, almost uniformly across firm characteristics, become less inclined - as compared to firms facing constraints - to engage in innovative activity by raising debt. Second, small, young, highly leveraged, and firms with lower collateralizable assets are more likely to be financially constrained. Third, large, young, and low leveraged firms are more likely to be innovators. Fourth, financial constraints adversely affect a firm’s R&D intensity. Fifth, smaller and younger firms are more R&D intensive. A new estimator, that combines the method of "Correlated Random Effects" and "Control Function" to account for the endogeneity of regressors in a structural equations model, is developed. |
| Keywords: | Financial Constraints, Capital Structure, R&D, Innovation, Firm Characteristics, Panel Data, Correlated Random Effects, Control Function |
| JEL: | G30 O30 C30 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2012062&r=sbm |
| By: | Elisa Lanzi; Ivan Haščič; Nick Johnstone |
| Abstract: | This paper analyses the determinants of invention in efficiency-enhancing electricity generation technologies that have the potential to facilitate climate change mitigation efforts, including fossil fuelbased technologies aimed at reducing carbon emissions, renewables and nuclear technologies. The evolution of inventive activity in these technologies is analysed by considering patent data for 11 OECD countries over the period 1978-2008. The analysis considers various drivers of inventive activity, including R&D expenditures and electricity consumption, but pay particular attention to the role of fossil fuel prices because they suggest the impact that price mechanisms such as emissions trading and carbon taxes are likely to have on invention in the electricity generation sector.<P> The results show that the effect of fossil fuel prices varies according to the different types of technologies. As fossil fuel prices increase, inventive activity in renewable energy technologies increases while the effect of on fossil fuel-based technologies is positive but with decreasing increments. The results show that there is no effect of fossil fuel prices on patenting activity in nuclear energy technologies. These results illustrate that there may be a price-induced switching between renewable and fossil fuel-based technologies. As fossil fuel prices rise, an efficiency effect encourages inventive activity in both fossil fuelbased and renewable technologies. As fossil fuel prices increase further, invention in fossil fuel-based technologies starts declining suggesting that a substitution effect drives away innovation from fossil fuelbased towards renewable energy technologies. |
| Keywords: | innovation, energy, patents, climate change |
| JEL: | Q4 Q54 Q55 |
| Date: | 2012–09–14 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:45-en&r=sbm |
| By: | Färnstrand Damsgaard, Erika (National Institute of Economic Research); Norbäck, Pehr-Johan (Research Institute of Industrial Economics (IFN)); Persson, Lars (Research Institute of Industrial Economics (IFN)); Vasconcelos, Helder (Faculdade de Economia, Universidade do Porto) |
| Abstract: | Entrepreneurs face higher commercialization costs than incumbents. We show that this implies that entrepreneurs will choose more risky projects than incumbents, aiming to reduce their high expected marginal commercialization cost. However, entrepreneurs may select too safe projects from a social point of view, since they do not internalize the business stealing effect. We also show that commercialization support induces entrepreneurship but may lead to mediocre entrepreneurship by inducing entrepreneurs to choose less risky projects, whereas R&D support encourages entrepreneurship without affecting the type of entrepreneurship. Using Swedish patent citation data, we find empirical support for predictions of the model. |
| Keywords: | Entrepreneurship; Innovation; Start-ups; Ownership; Breakthrough; Quality |
| JEL: | G24 L10 L20 M13 O30 |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0926&r=sbm |
| By: | Eugene Mazur |
| Abstract: | This report aims to help environmental and other competent authorities in OECD countries to promote green business practices among small and medium-sized enterprises (SMEs). It analyses different ways to establish environmental regulatory requirements for facilities with low environmental risk (most of which are SMEs). It also examines how to design and apply information and market-based tools to promote compliance with such requirements and adoption of cleaner technologies and good environmental management practices. The report suggests several ways to increase the effectiveness of these promotion tools with respect to the SME community.<P> The report addresses the roles of environmental authorities, local governments, business organisations and financial institutions in the greening of small businesses. It reviews in detail the experience of France, Ireland, Korea, the Netherlands and the UK (England and Wales and Scotland) and draws on examples of several other countries. |
| Keywords: | SMEs, green growth, environmental authorities, environmental compliance |
| JEL: | K32 K42 L53 M48 O44 O57 Q58 |
| Date: | 2012–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:47-en&r=sbm |
| By: | Catherine L. Mann (International Business School, Brandeis University) |
| Abstract: | Start-up firms are a key feature of the U.S. econoomy. Annually, start-ups account for about 20 percent of all companies. On average, they create 3 million jobs per year, somewhat more than 5 percent of total job creation. But, by 2009, in the depths of the Great Recession, the rate of job creation at start-ups has fallen significantly, to about 2 million jobs per year, as a result of fewer start-ups and/or fewer jobs at each start-up. Although job creation at start-ups should increase as the economy recovers, it is worth asking whether the financial crisis will have a lasting effect. |
| Keywords: | Start-up, job creation, jobs, financial crisis |
| JEL: | G32 L26 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:bui:rosgfb:03&r=sbm |