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on Small Business Management |
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Issue of 2013‒10‒18
eight papers chosen by Joao Carlos Correia Leitao Universidade da Beira Interior and Universidade de Lisboa |
| By: | H. T. Tran; E. Santarelli |
| Abstract: | This paper investigates the determinants of innovative activities and the innovation-performance relationship for the firm population in Vietnam in three consecutive stages: decision – investment – outcome. Cragg’s two-tiered dynamic type-2 Tobit model and instrumental variable GMM method are applied to control for the selectivity and endogeneity of R&D and innovation. After controlling for ownership types, industry and regional fixed-effects, key findings include: (i) R&D and innovation activities not only stimulate firms’ profitability and growth of sales, but also increase their survival propensity; (ii) private innovative firms significantly outperform their peers whereas the combination of young, small, and innovative characteristics in young innovative companies (YICs) does not bring the expected higher entrepreneurial performance as how it works in advanced countries; (iii) highly-leveraged firms, exporting firms, and diversified firms are more likely to be innovative than their counterparts, but the ability to transform innovative efforts into higher profitability and growth can only be witnessed among diversified firms; and (iv) firms being endowed with larger asset pool have more favorable conditions to engage in innovation activities, but do not necessarily produce superior performance relatively to their smaller counterparts. However, firm labor size is positively associated with both R&D intensity and entrepreneurial performance of firms. The dataset of population of existing firms (from 2000 to 2005) extracted from the annual enterprise survey conducted by Vietnam General Statistics Organization (GSO) is used for the empirical analysis. |
| JEL: | O32 O33 O53 L25 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp909&r=sbm |
| By: | Neil Lee |
| Abstract: | Growing cultural diversity is seen as important for innovation. Research has focused on two potential mechanisms: a firm effect, with diversity at the firm level improving knowledge sourcing or ideas generation, and a city effect, where diverse cities helping firms innovate. This paper uses a dataset of over 2,000 UK SMEs to test between these two. Controlling for firm characteristics, city characteristics and firm and city diversity, there is strong evidence for the firm effect. Firms with a greater share of migrant owners or partners are more likely to introduce new products and processes. This effect has diminishing returns, suggesting that it is a 'diversity' effect rather than simply the benefits of migrant run firms. However, there is no relationship between the share of foreign workers in a local labour market and firm level innovation, nor do migrant-run firms in diverse cities appear particularly innovative. But urban context does matter and firms in London with more migrant owners and partners are more innovative than others. |
| Keywords: | Cultural diversity, innovation, cities, SMEs, migration |
| JEL: | J61 L21 M13 R23 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0144&r=sbm |
| By: | Stephan, Andreas (Ratio & JIBBS) |
| Abstract: | The main purpose of this paper is to analyse whether research spin-offs, that is, spinoffs from either public research institutes or universities, have greater innovation capabilities than comparable knowledge-intensive firms created in other ways. Using a sample of about 2,800 firms from highly innovative sectors, propensity score matching is used to create a sample group of control firms that is comparable to the group of spin-offs. The paper provides evidence that the 121 research spin-offs investigated have more patent applications and more radical product innovations, on average, compared to similar firms. The results also show that research spin-offs’ superior innovation performance can be explained by their high level of research cooperation and by location factors. An urban region location and proximity to the parent institution are found to be conducive to innovation productivity. The paper also finds evidence that research spin-offs are more successful in attracting support from public innovation support programs in comparison to their peers. |
| Keywords: | Spin-Offs; Innovation Performance; Propensity Score Matching; Location Factors; Cooperation; Public R&D Subsidies |
| JEL: | M13 O18 |
| Date: | 2013–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0222&r=sbm |
| By: | Einar Rasmussen (Bodø Graduate School of Business (HHB), University of Nordland); Paul Benneworth (Center for Higher Education Policy Studies (CHEPS) at the University of the Twente); Magnus Gulbrandsen (Centre for Technology, Innovation and Culture (TIK), University of Oslo) |
| Abstract: | Some universities and departments have been very successful in stimulating university spin-off firms (USOs). This has persuaded policy makers and university administrators to devote considerable resources to improve universities' capabilities to promote USOs, but with little tangible results. Related research has considered why some universities contributes more to business innovation than others, but whether the majority of universities can become innovation hotbeds remains an open question. This paper takes a novel interdisciplinary approach integrating insights from two separate literatures, academic entrepreneurship and university management. We start by taking the firm’s perspective and seek to understand the challenges faced by USOs and how universities can assist these firms in developing their entrepreneurial competencies. The structure and main purpose of universities are very different from that of new technology businesses and the transition from being an academic research activity to become a commercial business activity poses challenges both for the university and the USO. Much research on universities’ entrepreneurial capability focuses on ‘what’ universities can do to support USOs at the expense of ‘why’ universities’ might choose to promote USOs when they are under many intense competing demands from outside. We explore not only what universities can do to support USOs, but also how universities experience USOs’ support demands, and the circumstances under which universities can develop capability to promote USOs. We address the barriers that arise between universities and USOs and discuss mitigating factors which support the competencies of USOs whilst at the same time meet the different university stakeholders’ needs. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20131007&r=sbm |
| By: | Paul Nightingale (SPRU, University of Sussex, UK); Alex Coad (SPRU, University of Sussex, UK) |
| Keywords: | Entrepreneurship, Jon creation, Self-employment, New firm formation, Innovation |
| JEL: | L26 M13 J24 |
| Date: | 2013–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2013-03&r=sbm |
| By: | Rafik Abdesselam (COACTIS, Université Lumière Lyon 2); Jean Bonnet (CREM-UMR CNRS 6211, Université de Caen Basse-Normandie, UFR SEG (Sciences Economiques et Gestion), Normandie Université, France); Patricia Renou-Maissant (CREM-UMR CNRS 6211, Université de Caen Basse-Normandie, UFR SEG (Sciences Economiques et Gestion), Normandie Université, France) |
| Abstract: | We study the relationships between unemployment rate and new-firm startups rate in France using a quarterly data basis over the 1993-2011 period. At the national level we identify that the refugee effect explains the dynamics of entrepreneurship in France over the period 2000-2011. New French firms are mostly set up for necessity motives. At the regional level data analysis methods allow to obtain different classes of regions that represent different type of developments. For each of these classes we are able to identify the existence of refugee/Schumpeter effects both in the short-run and in the long-run. |
| Keywords: | New firm formation, Business cycle, Schumpeter effect, refugee effect, data analysis methods, panel data |
| JEL: | L26 E32 R11 C23 C38 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201333&r=sbm |
| By: | Wang, Lili (UNU-MERIT/MGSoG); Meijers, Huub (School of Business and Economics, Maastricht University); Szirmai, Eddy (UNU-MERIT/MGSoG) |
| Abstract: | This paper focuses on the role of interregional technology spillovers in the process of industrial growth in Chinese regions in the period 1990-2005. Inflows of FDI increased rapidly from 1990 till 1998, slowing down thereafter. Domestic R&D investment accelerated after 1998. Regional industrial growth benefits from both interregional R&D spillovers and after 1998 from international FDI spillovers. However, in contrast to R&D spillovers, FDI spillovers contribute conditionally, mainly in areas where local R&D stocks are high enough. Interestingly, indirect interregional FDI spillover effects are negative. Foreign investment in one region attracts resources from regions with less FDI, thus having a negative influence on growth of industrial output in neighbouring regions. |
| Keywords: | Technological spillovers, Interregional spillovers, R&D, Foreign direct investment, Industrial growth, Regional growth, Chinese industry |
| JEL: | F43 O14 O33 R11 R12 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013044&r=sbm |
| By: | Heinz Hollenstein |
| Abstract: | Basierend auf einer Sichtung der empirischen Literatur werden in diesem Policy Brief drei Fragen behandelt: 1. Welche (neuen) Trends prägen die Internationalisierung von Forschung und Entwicklung (F&E)? 2. Welche Faktoren entscheiden darüber, ob ein Unternehmen im Ausland F&E betreibt? 3. Wie wirkt sich die Internationalisierung von F&E auf Innovation und Produktivität (und damit auf das Wachstum) der heimischen Wirtschaft aus? Der Beitrag zeigt u.a., dass die mancherorts gehegte Befürchtung, dass F&E-Investitionen an ausländischen Standorten die Wissensbasis der inländischen Wirtschaft schwächt, unbegründet ist. Im Weiteren wird deutlich, dass der Nutzen, den die Präsenz multinationaler Unternehmen mit sich bringt umso grösser ist, je stärker diese in die heimische Wirtschaft (inkl. Hochschulsektor) eingebettet sind („embeddedness“) und je besser inländische Firmen in der Lage sind, Wissen und Technologien von Auslandtöchtern aufzunehmen und in ihre eigene Wissensbasis zu integrieren („absorptive capacity“). Um das Potential der Internationalisierung von F&E ausschöpfen zu können, müssen Bildung und Forschung gestärkt, Hightech-Clusters gefördert und bestehende Markteintrittsschranken (vor allem für Hightech-Jungunternehmen und Auslandfirmen) abgebaut werden. |
| Keywords: | Internationalisation of R&D, Determinants of foreign R&D, International R&D and performance, R&D spillovers |
| JEL: | F23 L24 O3 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:pbrief:y:2013:i:020&r=sbm |