nep-sbm New Economics Papers
on Small Business Management
Issue of 2013‒07‒28
four papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Firm heterogeneity in TFP, sectoral innovation and geography. Evidence from Italy By Aiello, Francesco; Pupo, Valeria; Ricotta, Fernanda
  2. Technological Innovation, Entrepreneurship, and Development By Wim Naudé; Adam Szirmai
  3. Ownership structures and R&D in Europe: the good institutional investors, the bad and ugly impatient shareholders By Olivier Brossard; Stéphanie Lavigne; Mustafa Sakinc Erdem
  4. A Panel Study of eZombief SMEs in Japan: Identification, Borrowing and Investment Behavior By Kentaro Imai

  1. By: Aiello, Francesco; Pupo, Valeria; Ricotta, Fernanda
    Abstract: Sectoral and territorial specificities affect the firm’s capabilities of being productive. While there is a wide consensus on this, a quantitative measure of the these effects has been lacking. To this end, we combine a dataset of Italian firms with some meso regional and sectoral variables and apply a cross-classified model that allows for a clear distinction between firm, region-specific and sector-specific effects. After observing a marked TFP heterogeneity across firms, the paper addresses the issue of understanding how much differences in firms’ productivity depend on regional localisation and sector specificities. Results refer to 2004-2006 and are threefold. Firstly, they confirm that the main source of firm variety is mostly due to differences revealed at individual level. Secondly, we find that sector is more important than location in explaining firms’ TFP. Lastly, the results show that firm TFP increases when it belongs to more innovative sectors. Similarly, companies get benefits from belonging to sectors where there is a high proportion of firms using R&D public support and a high propensity to collaborate in innovative projects.
    Keywords: Total Factor Productivity, Firms’ Heterogeneity, Sectoral innovation, Geography, Cross-Classified Models
    JEL: L25 L60 O33
    Date: 2013–07–23
  2. By: Wim Naudé (Maastricht School of Management, UNU-MERIT, University of Maastricht and IZA- Institute for the Study of Labour); Adam Szirmai (UNU-MERIT and Maastricht Graduate School of Governance, University of Maastricht)
    Abstract: What is the relationship between technological innovation, entrepreneurship and development? Is it better for developing countries to coping and adapt existing technologies from richer countries rather than undertake or promote intensive research and development (R&D) of their own? We tackle these perennial issues afresh by considering the relationship between knowledge, innovation and growth in the past and by identifying whether and how the scope for catch-up growth exists. We focus on the interesting case of technological innovation in the comparative economic performance of China; we draw some lessons for development elsewhere.
    Keywords: innovation, entrepreneurship, development, knowledge, China, BRICS
    JEL: F23 L52 L53 O25 O40 O33 O34
    Date: 2013–07
  3. By: Olivier Brossard (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - Université des Sciences Sociales - Toulouse I : EA4212 - École Nationale de Formation Agronomique - ENFA - Institut d'Études Politiques [IEP] - Toulouse - Université Toulouse le Mirail - Toulouse II); Stéphanie Lavigne (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - Université des Sciences Sociales - Toulouse I : EA4212 - École Nationale de Formation Agronomique - ENFA - Institut d'Études Politiques [IEP] - Toulouse - Université Toulouse le Mirail - Toulouse II); Mustafa Sakinc Erdem (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - CNRS : UMR5113 - Université Montesquieu - Bordeaux IV)
    Abstract: This study examines the relationship between ownership structures in large European companies and their innovative activity in terms of R&D spending. The analysis is performed on a sample of 324 large innovative companies over 8 years. Contrary to the view that institutional investors can have a negative influence on R&D spending, we report a positive impact of these investors. Our study also tests the impact of 'impatient' institutional investors and provides evidence of their negative influence on R&D spending.
    Keywords: ownership structures; institutional ownership; innovation; R&D intensity
    Date: 2013
  4. By: Kentaro Imai (Graduate School of Economics, Osaka University)
    Abstract: We estimated the extent to which ezombief SMEs existed in Japan by using panel data set of firms and investigated borrowing and investment functions of ezombief SMEs. We found that 5%`13% of SMEs are ezombief firms. As for borrowing behavior, ezombief firms did not succeed in reducing their loans. A fall in land value of SMEs induced an increase in borrowing of ezombief firms or ever-greening. We also find that the profitability of investment, measured by marginal q and the increment of output, did not increase investment for the ezombief firm, but rather ever-greening of loans increased investment in less productive and profitable projects.
    Keywords: ezombief firms, ever-greening, SMEs, borrowing, investment
    JEL: G21 E22 E44
    Date: 2013–07

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