nep-sbm New Economics Papers
on Small Business Management
Issue of 2013‒07‒20
eleven papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Network Formation: R&D Cooperation Propensity and Timing Among German Laser Source Manufacturers By Muhamed Kudic
  2. Regional characteristics, opportunity perception and entrepreneurial activities By Stuetzer, Michael; Obschonka, Martin; Brixy, Udo; Sternberg, Rolf; Cantner, Uwe
  3. Industry in the South of Italy and the crisis By Raffaello Bronzini,; Luigi Cannari; Alessandra Staderini; Laura Conti; Leandro D’Aurizio; Alessandro Fabbrini; Andrea Filippone; Giuseppe Ilardi; Giovanni Iuzzolino; Pasqualino Montanaro; Marco Paccagnella; Valeria Pellegrini; Raffaele Santioni
  4. The impact of government support on firm R&D investments : a meta-analysis By Correa, Paulo; Andres, Luis; Borja-Vega, Christian
  5. Determinants of job creation in eleven new EU member states : evidence from firm level data By Oberhofer, Harald; Vincelette, Gallina A
  6. Determinants and Policy Simulation of Firms Cooperation in Innovation By Heshmati, Almas; Lenz-Cesar, Flávio
  7. Where do entrepreneurial skills come from? By Stuetzer, Michael; Obschonka, Martin; Davidsson, Per; Schmitt-Rodermund, Eva
  8. The Response of Firms' Leverage to Risk: Evidence from UK Public versus Non-Public ManufacturingFirms By Mustafa Caglayan; Abdul Rashid
  9. Serial entrepreneurship, learning by doing and self-selection By Vera Rocha; Anabela Carneiro; Celeste Amorim Varum
  10. Reputation and Entry By Butler, Jeffrey V.; Carbone, Enrica; Conzo, Pierluigi; Spagnolo, Giancarlo
  11. Economics of Small Wind Power Plants in Urban Settings: An Empirical Investigation for Germany By Grieser, Benno; Madlener, Reinhard; Sunak, Yasin

  1. By: Muhamed Kudic
    Abstract: Empirical evidence on the evolution of innovation networks within high-tech industries is still scant. We investigate network formation processes by analyzing the timing of firms to enter R&D cooperations, using data on laser source manufacturers in Germany, 1990-2010. Network measures are constructed from a unique industry database that allows us to track both the formation and the termination of ties. Regression results reveal that a firm's knowledge endowment (and cooperation experience) shortens the duration to first (and consecutive) cooperation events. The previous occupation of strategic network positions is closely related to the establishment of further R&D cooperations at a swift pace. Geographic co-location produces mixed results in our analysis.
    JEL: O32 C41 D85
    Date: 2013–07
  2. By: Stuetzer, Michael; Obschonka, Martin; Brixy, Udo; Sternberg, Rolf; Cantner, Uwe
    Abstract: This paper seeks to better understand the link between regional characteristics and individual entrepreneurship. We combine individual-level GEM data for Western Germany with regional-level data, using multi-level analysis to test our hypotheses. We find no direct link between regional knowledge creation, the economic context and an entrepreneurial culture on the one side and individual business start-up intentions and start-up activity on the other side. However our findings point to the importance of an indirect effect of regional characteristics as knowledge creation, the economic context and an entrepreneurial culture have an effect on the individual perception of founding opportunities which in turn predicted start-up intentions and activity.
    Keywords: Regional entrepreneurship; nascent entrepreneurship; opportunity perception; creative class; Global Entrepreneurship Monitor (GEM)
    JEL: J24 L26 M13
    Date: 2013
  3. By: Raffaello Bronzini, (Banca d'Italia); Luigi Cannari (Banca d'Italia); Alessandra Staderini (Banca d'Italia); Laura Conti (Banca d'Italia); Leandro D’Aurizio (Banca d'Italia); Alessandro Fabbrini (Banca d'Italia); Andrea Filippone (Banca d'Italia); Giuseppe Ilardi (Banca d'Italia); Giovanni Iuzzolino (Banca d'Italia); Pasqualino Montanaro (Banca d'Italia); Marco Paccagnella (Banca d'Italia); Valeria Pellegrini (Banca d'Italia); Raffaele Santioni (Banca d'Italia)
    Abstract: In the last decade, and especially in the course of the recent global economic slowdown, the gap between southern and northern industry has widened. Industrial investment and employment decreased more sharply in the South than in the rest of Italy, and the contribution of the southern regions to the total industrial value added diminished. In this report we analyse southern industry micro- and macro-economically, showing that the area suffers from the same structural problems that affect the Italian economy overall, but more severely: small firm size, specialization in relatively low-tech sectors, and scant innovation and internationalization. Although the weaknesses prevail over the strengths, there are signs of vitality for some local productive systems and types of firms, mainly large enterprises.
    Keywords: industry dynamics, regional growth, agglomeration
    JEL: L60 R00 D20
    Date: 2013–07
  4. By: Correa, Paulo; Andres, Luis; Borja-Vega, Christian
    Abstract: This paper applies meta-analysis techniques to a sample of 37 studies published during 2004-2011. These papers assess the impact of direct subsidies on business research and development. The results show that the effect of public investment on research and development is predominantly positive and significant. Furthermore, public funds do not crowd out but incentivize firms to revert funds into research and development. The coefficient of additionality impacts on research and development ranges from 0.166 to 0.252, with reasonable confidence intervals at the 95 percent level. The results are highly sensitive to the method used. The high heterogeneity of precision is explained by the wide variety of methodologies used to estimate the impacts and paper characteristics.
    Keywords: Scientific Research&Science Parks,Science Education,E-Business,Statistical&Mathematical Sciences,Teaching and Learning
    Date: 2013–07–01
  5. By: Oberhofer, Harald; Vincelette, Gallina A
    Abstract: This paper builds on the analysis of job creation developed in World Bank (2013) to provide an empirical investigation of the industry and firm-specific determinants of the job creation process in eleven new European Union (EU11) economies. It relies on the Amadeus dataset of firms during 2002-2009. The main results indicate that during the years prior to the global financial crisis, traditional industries were crucial for the net creation of jobs in EU11. However, traditional industries were the ones most severely affected by the financial crisis. By contrast, services firms were less vulnerable to the economic downturn. At the firm level, small and young firms registered the highest employment growth rates. The empirical results also indicate that more productive firms tended to be less vulnerable to economic downturns. Moreover, the results demonstrate that the perceived quality of the business climate by the EU11 enterprises is correlated with not only the firms'employment growth, but also their productivity. In the post-crisis period, poor business restrictions were negatively associated with the creation of jobs. All these findings hold for the group of high-growth firms that disproportionately accounted for the creation of new jobs in the EU11 economies.
    Keywords: Labor Markets,Microfinance,Small Scale Enterprise,Environmental Economics&Policies,Labor Policies
    Date: 2013–07–01
  6. By: Heshmati, Almas (Sogang University); Lenz-Cesar, Flávio (Brazil Ministry of Communications)
    Abstract: This research introduces an agent-based simulation model representing the dynamic processes of cooperative R&D in the manufacturing sector of South Korea. Firms' behavior is defined according to empirical findings on the Korean Innovation Survey 2005 and captured in a multivariate probit regression model. The econometrics model identifies the determinants on firms' likelihood to participate in cooperation with other organizations when conducting innovation activities. These determinants are translated into simulation parameters which are calibrated to the point that the simulated artificial world are equivalent to the one observed in the real world. The aim of the simulation game is to investigate the differences in sector responses to internal and external changes, including cross-sector spillovers, when applying three different policy strategies to promote cooperation in innovation. The findings indicate possible appropriate (or non-appropriate) policy strategies to be applied depending on the target industries.
    Keywords: agent-based simulation, collaborative R&D, innovation networks, simulation game, policy strategy
    JEL: C15 C71 D21 D85 L20 O31
    Date: 2013–07
  7. By: Stuetzer, Michael; Obschonka, Martin; Davidsson, Per; Schmitt-Rodermund, Eva
    Abstract: Applying Lazear’s jack-of-all-trades theory we investigate the formation of entrepreneurial skills in two datasets on innovative new firms. Our results suggest that traditional human capital indicators individually have little or no influence on entrepreneurial skills. However, consistent with Lazaer’s theory those entrepreneurs who exhibit a varied set of work experience have higher entrepreneurial skills relevant for starting and growing a firm. This supports the notion that a varied set of work experiences rather than depth of any particular type of experience or education is important for the development of entrepreneurial skills.
    Keywords: Entrepreneurial skills; jack-of-all trades; new venture creation; human capital
    JEL: J24 L26 M13
    Date: 2013
  8. By: Mustafa Caglayan; Abdul Rashid
    Abstract: This paper empirically investigates the effects of macroeconomic and firm-specific risk on firms' leverage. The analysis is carried out for a large panel of public and non-public UK manufacturing firms over the period 1999-2008. Our investigation provides evidence that UK manufacturing firms use less short-term debt during periods of high risk. However, the leverage of non-public manufacturing firms is more sensitive to firm-specific risk in comparison to their public counterparts while macroeconomic risk affects both types of firms similarly. Our investigation also shows that firms with high liquid assets reduce their leverage more (less) during periods of heightened firm-specific (macroeconomic) risk.
    Date: 2013
  9. By: Vera Rocha (Universidade do Porto, cef.up and CIPES); Anabela Carneiro (Universidade do Porto and cef.up); Celeste Amorim Varum (Universidade de Aveiro, DEGEI and GOVCOPP)
    Abstract: It remains a question whether serial entrepreneurs typically perform better than their novice counterparts owing to learning by doing e¤ects or mostly because they are a selected sample of higher-than-average ability entrepreneurs. This paper tries to unravel these two effects by exploring a novel empirical strategy based on continuous time duration models with selection. We use a large longitudinal matched employer-employee dataset that allows us to track almost 220,000 individuals who have left their first entrepreneurial experience. Over 35,000 serial entrepreneurs are identified and followed in their second business, in order to evaluate how entrepreneurial experience acquired in the previous business improves persistence by reducing their exit rates. Our results show that serial entrepreneurs are not a random selection of ex-business-owners. The positive association found between prior experience and serial entrepreneurs' survival is mainly due to selection on ability, rather than the result of learning by doing.
    Keywords: Serial Entrepreneurship, Entrepreneurial Experience, Learning, Selection
    JEL: D83 J24 L26
    Date: 2013–07
  10. By: Butler, Jeffrey V. (EIEF); Carbone, Enrica (Second University of Naples "SUN"); Conzo, Pierluigi (University of Turin); Spagnolo, Giancarlo (Stockholm School of Economics - SITE, University of "Tor Vergata" & CEPR)
    Abstract: There is widespread concern among regulators that favoring suppliers with good past performance, a standard practice in private procurement, may hinder entry by new firms in public procurement markets. In this paper we report results from a laboratory experiment exploring the relationship between reputation and entry in procurement. We implement a repeated procurement model with reputation for quality and the possibility of entry in which the entrant may start off with positive reputation. Our results suggest that while some past-performance based reputational mechanisms can reduce the frequency of entry, appropriately designed mechanisms significantly stimulate it. We find that our reputational mechanism increases quality but not prices, so that the introduction of this kind of mechanism may generate large welfare gains for the buyer.
    Keywords: Cross-border procurement; Entry; Feedback mechanisms; Incomplete contracts; Limited enforcement; Incumbency; Multidimensional competition; Outsourcing; Past performance; Procurement; Quality assurance; Small business subsidies; Reputation; Vendor rating
    JEL: H57 L14 L15
    Date: 2013–05–15
  11. By: Grieser, Benno (RWTH Aachen University); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Sunak, Yasin (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))
    Abstract: In this paper we investigate the location-specific attractiveness of small wind turbines (SWT) for private households. In order to assess the economic viability of an investment in SWT, we analyze a set of scenarios that incorporate different types of SWT, various storage system options, support schemes, and specific urban surroundings for the case of Germany. As urban structures substantially influence local wind speeds, and hence the potential energy yield of a turbine, the potential location of the SWT in the urban area is crucial for the economic feasibility. We find that SWT today are only profitable under very favorable conditions, the most important parameters being prevailing wind speeds and the location’s degree of urbanization. In most cases, the coupling of the SWT to a storage system is crucial for cost-effectiveness. A feed-in tariff system specifically adapted to the SWT technology is found to be an important driver of diffusion. Further research needs are identified in the field of long-term performance and yield projections for SWT. Based on the findings from our study, significant SWT diffusion can be expected, if at all, only in coastal suburban and rural areas.
    Keywords: small wind turbine; energy storage; urban environment; feed-in tariffs
    JEL: O18 Q42 Q48
    Date: 2013–01

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