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on Small Business Management |
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Issue of 2014‒06‒28
nine papers chosen by Joao Carlos Correia Leitao Universidade da Beira Interior and Universidade de Lisboa |
| By: | Oscar M. Valencia |
| Abstract: | R&D intensity for small firms is high and persistent over time. At the same time, small firms are often financially constrained. This paper proposes a theoretical model that explains the coexistence of these two stylized facts. It is shown that self-financed R&D investment can distort the effort allocated to different projects in a firm. In a dynamic environment, it is optimal for the firm to invest in R&D projects despite the borrowing constraints. In addition, this paper shows that beyond a certain threshold, effort substitution between R&D and production appears. When transfers from investor to entrepreneur are large enough, R&D intensity decreases with respect to financial resources. Conditional on survival, the more innovative and financially constrained firms are, faster they grow and exhibit higher volatility. Classification JEL: O41, 031, D86 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdr:borrec:828&r=sbm |
| By: | Giovanni Marin (CERIS-CNR, National Research Council of Italy, Milan.); Alberto Marzucchi (CERIS-CNR, National Research Council of Italy, Milan.); Roberto Zoboli (CERIS-CNR, National Research Council of Italy, Milan.) |
| Abstract: | Eco-innovation is an explicit aim of major EU policy strategies. Many environmental policies de facto require firms to eco-innovate to comply with policy requirements, while the overlap between policy-driven and market-driven eco-innovation strategies is increasingly important for many firms. Barriers to eco-innovation can then emerge as a critical factor in either preventing or stimulating EU strategies, policy implementation, and 'green strategies' by firms. In this paper, we propose a taxonomy of EU SMEs in terms of barriers to eco-innovation. The aim is to discriminate among SMEs on how they differ in terms of perception of barriers and engagement in environmental innovation, thus highlighting the need to look at eco-innovation barriers in relation to firms' attitudes, technological and organizational capabilities, and strategies. We identify six clusters of SMEs. These clusters include firms facing 'Revealed barriers', 'Deterring barriers', 'Cost deterred' firms, 'Market deterred' firms, 'Non eco-innovators' and 'Green champions'. The clusters show substantial differences in terms of eco-innovation adoption. We show that our proposed taxonomy has little overlap with sector classifications. This diversity should be taken into account for successful environmental innovation policies. |
| Keywords: | eco-innovation, barriers to innovation, firm behaviour. |
| JEL: | O33 Q55 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0614&r=sbm |
| By: | Jens Horbach (University of Applied Sciences, Augsburg.) |
| Abstract: | Eco-innovations lead to less environmental impacts or to a reduction of energy use and are therefore crucial for climate protection. Recently, the determinants of eco-innovation activities have been widely explored for single countries but there is still a lack of country comparisons mainly because of data restrictions. In 2009, a special module on eco-innovation has been included in the Community Innovation Survey (CIS) allowing a comparison of the determinants of eco-innovation in 19 different European countries. Our analysis especially focuses on Eastern European transformation countries because the determinants of eco- innovation in these countries have not yet been systematically analyzed. Concerning the introduction of eco-innovation, the econometric analysis shows that regulation activities seem to be more important for Eastern European countries. This is especially the case for 'traditional fields'such as air, noise, soil, water, recycling or dangerous substances. Except energy saving measures, environmentally related subsidies seem to be quantitatively more important for the Eastern European countries pointing to the lower financial performance of the respective firms. Furthermore, Eastern European countries are more relying on competitors and external R&D as information sources indicating a technology transfer from West to East. |
| Keywords: | eco-innovation, probit models, country analysis. |
| JEL: | Q55 O33 C25 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0714&r=sbm |
| By: | Daniela Federici (Università di Cassino e del Lazio Meridionale); Francesco Ferrante (Università di Cassino e del Lazio Meridionale AlmaLaurea Inter-University Consortium) |
| Abstract: | The connection between the weak performance of the Italian economy and the mechanisms governing the creation and allocation of human capital has been investigated only rarely. This paper argues that the Italian economy faces not just a generic shortage of human capital but a specific shortage of entrepreneurial human capital, which explains the small size of firms and their lack of international competitiveness in high-tech sectors. We identify the main institutional mechanisms responsible for this state of affairs and the economic policy tools needed to promote the generation of entrepreneurial human capital. |
| Keywords: | Education, Self-employment, Entrepreneurship, Human capital, Firms |
| JEL: | J23 J24 L25 L50 O17 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:laa:wpaper:64&r=sbm |
| By: | Lynne G. Zucker; Michael R. Darby |
| Abstract: | Research on intellectual property has focused on formal legally recorded rights that we call deeded, most often measured by granted patents. Meanwhile, other “defacto” IP (mainly purposive secrecy and natural excludability) has become more important because of the increasing closeness of commercial technologies to cutting edge science. A “corporate-academic” model has developed and become institutionalized over the last three decades which emphasizes attracting the best and brightest scientists, providing them with a commensurate increase in autonomy including initiation of bench-level collaborations with top university scientists in which valuable tacit knowledge is transferred in both directions. We provide suggestive evidence that both firm and university scientists learn from these collaborations, e.g., both types of scientists experience sharply higher patenting rates once they have engage in university-firm collaborations. We propose and test two indicators of adoption of the corporate-academic model, whether or not the firm has ever: (a) co-authored an article with a university scientist and (b) applied for (an eventually granted) patent with non-patent references, where these references are used importantly to cite scientific articles and other scientific materials. Both were robustly positive and statistically significant across four measures of U.S. high-tech firm success (publishing, patenting, obtaining venture capital, and going public) for six broad S&T areas (bio/chem/med, information technology, nanotechnology, semiconductors, other science, and other engineering). Star scientists publication as or with firm employees, SBIR grants received, and citation-weighted patents and articles all played comparatively supporting roles in the empirical estimates. We concluded that the most successful high-tech firms have adopted a strategy of operating near the edge of the scientific envelope where high levels of tacit knowledge provide substantial natural excludability reducing or preventing entry of imitators. |
| JEL: | J44 L25 L63 L64 L65 M13 O31 O32 O33 O34 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20249&r=sbm |
| By: | Massimiliano Volpi (Natural Environment Research Council, Polaris House, North Star Avenue, SN2 1EU, Swindon, United Kingdom.) |
| Abstract: | The paper investigated the role Universities play as sources of information for companies' innovation. This study compared the explanations proposed by the 'open innovation' literature with those suggested by the 'resource view' of the firm, concluding that the way 'open innovation' variables have been constructed should be questioned and the 'resource view' theory should be augmented with innovation motivations, as companies rely on universities to source knowledge not generally available within companies' technological paradigm. |
| Keywords: | green economy; environmental innovation; open innovation; universities. |
| JEL: | O32 Q55 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0514&r=sbm |
| By: | Ramaswamy, K.V (Indira Gandhi Institute of Development Research; Institute of Economic Growth) |
| Abstract: | Employment growth in household and small enterprises in Indian manufacturing in 2000s is analysed in the context of inclusive growth. Analysis is based on the results of establishment surveys of unorganized manufacturing and registered manufacturing for the years 2000-01, 2005-06 and 2010-11. The employment share of household enterprises was found to have declined across industries and across states of India with the exception of Gujarat and Delhi. Employment growth in small enterprises defined as those with less than 50 workers in the non-household segment was observed to be positive but insufficient to compensate for the decline of household employment. The employment share of small enterprises was not found to have improved during the years 2001 to 2011 in the States with higher per capita NSDP. This calls for policy initiatives that encourage new entry and growth of employment in existing small enterprises. |
| Keywords: | Employment, Inclusive growth, Small enterprises, Manufacturing |
| JEL: | J23 O25 L16 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2014-018&r=sbm |
| By: | Giulio Cainelli (University of Padova); Sandro Montresor (University of Bologna); Giuseppi Vittucci Marzetti (University of Milano - Bicocca) |
| Abstract: | The paper investigates the effect of spatial agglomeration on firm exit in a dynamic framework. Using a large dataset at the industry-province level for Italy (1998-2007), we estimate a spatial dynamic panel model via a GMM estimator and analyze the short-run impact of specialization and variety on firm exit. Specialization negatively affects firm exit rates in the short-run. The effect is particularly significant for low-tech firms. The impact of variety on firm mortality rates at the industry level is instead less clear, although still negative and significant for low-tech firms. |
| Keywords: | Firm exit, Localization, Spatial agglomeration, Specialization, Variety. Classification-JEL: R11, R12, L11, G20. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0173&r=sbm |
| By: | Valeria Gattai; Valentina Trovato |
| Abstract: | This paper explores the link between sourcing and performance for a representative sample of manufacturing firms located in Lombardy, the leading economic region in Italy. Survey estimation methods, applied to the authors’ original database, reveal that there exist some performance premia for firms engaged in foreign, rather than domestic and in- rather than out- sourcing. This result is robust to different specifications, samples, performance measures and definitions of sourcing strategies. |
| Keywords: | Sourcing, Premia, Regional data, Manufacturing industry, Italy |
| JEL: | D23 F23 L23 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:276&r=sbm |