nep-sbm New Economics Papers
on Small Business Management
Issue of 2014‒08‒09
25 papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Unpacking open innovation: Absorptive capacity, exploratory and exploitative openness and the growth of entrepreneurial biopharmaceutical firms By Stephen Roper; Helen Xia
  2. The relationship between international networking and firm performance in British SMEs By Rana Tadvji; Azhdar Karami
  3. Knowledge context, learning and innovation: an integrating framework By Stephen Roper; James H. Love; Ying Zhou
  4. Looking beyond the R&D effects on innovation: The contribution of non-R&D activities to total factor productivity growth in the EU By Lopez-Rodriguez, Jesus; Martinez, Diego
  5. Theoretical Perspectives on Localised Knowledge Spillovers and Agglomeration By Leppälä, Samuli
  6. Innovation, innovation strategy and survival By Stephen Roper; Helen Xia
  7. The legacy of public subsidies for innovation: input, output and behavioural additionality effects By Stephen Roper; Nola Hewitt-Dundas
  8. What drives environmental practices of SMEs? By Brigitte Hoogendoorn; Peter van der Zwan; Daniela Guerra
  9. Who Takes Advice? Firm Size Threshold, Competence, Concerns and Informality in a Contingency Approach By Kevin Mole; Robert Baldock; David North
  10. The Emperical Scope of User Innovation By Jeroen de Jong
  11. Accounting for Job Growth: Disentangling Size and Age Effects in an International Cohort Comparison By Michael Anyadike-Danes; Carl-Magnus Bjuggren; Sandra Gottschalk; Werner Hölzl; Dan Johansson; Mika Maliranta; Anja Myrann
  12. Innovation as Growth Policy: the challenge for Europe By Mariana Mazzucato; Carlota Perez
  13. The Financing of Diverse Enterprises: Evidence from the SME finance monitor By Sara Carter; Samuel Mwaura
  14. ICT and R&D as inputs or efficiency determinants? Analysing the manufacturing Italian firms over the 2007-2009 By Bonanno, Graziella
  15. Supporting sustained growth among SMEs – policy models and guidelines By Stephen Roper; Mark Hart
  16. Why don’t Poor Countries do R&D? By Edwin Goñi; William F. Maloney
  17. Green Technology and Optimal Emissions Taxation By Stuart McDonald; Joanna Poyago-Theotoky
  18. Size, Age and the Growth of Firms: New Evidence from Quantile Regressions By Roberta Distante; Ivan Petrella; Emiliano Santoro
  19. Is there an entrepreneurial culture? A review of empirical research By James Hayton; Gabriella Cacciotti
  20. The economic contribution of start-up firms in Germany By Schneck, Stefan; May-Strobl, Eva
  21. Gibrat's Law and the British industrial revolution By Alexander Klein; Tim Leunig
  22. Developing alliance formation process capabilities: replication, adaptation and flexibility in creating research and development consortia By James Hayton; Paul Olk
  23. Entrepreneurial families and households By Gry Agnete Alsos; Sara Carter; Elisabet Ljunggren
  24. Open Innovation Effects of Patent Applications: An empirical study of inkjet technology patents (Japanese) By KINUKAWA Shinya
  25. The Impact of Monetary Policy on Financing of Czech Firms By Ruslan Aliyev; Dana Hajkova; Ivana Kubicova

  1. By: Stephen Roper (Warwick University Business School); Helen Xia (Loughborough University)
    Abstract: In this paper we explore the relationship between two key aspects of open innovation in small firms – absorptive capacity and external relationships – and their effects on growth in the US and European biopharmaceutical sectors. Results from an international sample of 349 biopharmaceutical firms surveyed in the US, UK, France and Germany suggest that realized absorptive capacity plays an important role in determining firms’ growth. In terms of the interaction between firms’ absorptive capacity and external relationships, we find that engagement with exploratory relationships depends strongly on the continuity of R&D, while participation in exploitative relationships is more conditional on firms’ realized absorptive capacity.
    Keywords: alliances, absorptive capacity, bio-technology, US, Europe
    JEL: O31 L25 L65
    Date: 2014–05–02
  2. By: Rana Tadvji (Bangor University, UK); Azhdar Karami (Bangor University, UK)
    Abstract: The main objective of this paper is to investigate the effecto of international networking on the performance of British small and medium sized enterprises (SME). The international networking capabilities have been recognized as a vital element of growth and survival. In tnis research data has been collected using online questionnaries and mail survey for a sample of 118 SMEs operating in manufacturing, service providing and R&D sectors in the UK. The research hypotheses have been tested by applying the Structural Equation Model (SEM) methodology. The Lisrel software was used to test and analyse the relationship among variables. The collected data has been analysed using SEM. The data analysis illustates a positive and significant relationship between international networking activities of the SMEs and their performance. Learning, synergy of combined resources and knowledge sharing all were positively associated with profitability and to a lesser extent on sales growth.
    Keywords: International networking, performance, SME, UK
    Date: 2014–07
  3. By: Stephen Roper (Warwick University Business School); James H. Love (Aston University Business School); Ying Zhou (Aston University Business School)
    Abstract: In this paper we develop a framework to identify those elements of firms’ knowledge context which are important for innovation, and the mechanisms through which that knowledge impacts on firms’ innovation performance. We make four main contributions to the existing literature. First, our characterisation of knowledge context provides the basis for a more specific identification of which elements of firms’ knowledge environment are important for innovation, discriminating between spatial, industrial and network influences. Second, we reflect the role of innovation ambition in shaping firms’ knowledge search strategies. Third, we differentiate between firms’ interactive and non-interactive knowledge search activities and recognise that these may be complemented by unanticipated and serendipitous knowledge spillovers. Finally, we introduce the notion of encoding capacity to reflect firms’ internal ability to assimilate and apply external knowledge. Our framework provides an integrating mechanism for existing empirical studies, suggests a number of new research directions related to the determinants of innovation performance and the heterogeneity of innovation outcomes.
    Keywords: Knowledge, innovation, spatial, industry, learning
    Date: 2014–06–01
  4. By: Lopez-Rodriguez, Jesus; Martinez, Diego
    Abstract: Although non-R&D innovation activities account for a significant portion of innovation efforts carried out across very heterogeneous economies in Europe, how to incorporate them in to economic models is not always straightforward. For instance, the traditional macro approach to estimating the determinants of total factor productivity (TFP) does not handle them well. To counter these problems, this paper proposes applying an augmented macro-theoretical model to estimate the determinants of TFP by jointly considering the effects of R&D and the impact of non-R&D innovation activities on the productivity levels of firms. Estimations from a model of a sample of EU-26 countries covering the period 2004-2008 show that the distinction between R&D and non-R&D effects is significant for a number of different issues. First, the results show a sizeable impact on TFP growth, as the impact of R&D is twice that of non-R&D. Second, absorptive capacity is only linked to R&D endowments. And third, the two types of endowments cannot strictly been seen as complementary, at least for the case of countries with high R&D intensities or high non-R&D intensities.
    Keywords: TFP; R&D; non-R&D expenditures; EU countries
    JEL: O0 O3 O4
    Date: 2014–06
  5. By: Leppälä, Samuli (Cardiff Business School)
    Abstract: There is substantial empirical evidence that innovation is geographically concentrated. Unlike what is generally assumed, however, it is not clear that localised knowledge spillovers provide a theoretically valid explanation for this. Studying spillovers of cost-reducing technology between Cournot oligopolists we show that 1) localised knowledge spillovers of any level do encourage agglomeration, but 2) whether this leads to higher levels of effective R&D depends on the type and level of knowledge spillovers, the number of firms, and the industry's R&D efficiency.
    Keywords: knowledge spillovers; agglomeration economies; innovation; location
    JEL: O33 R32 L13
    Date: 2014–07
  6. By: Stephen Roper (Warwick University Business School); Helen Xia (Loughborough University)
    Abstract: Innovation has a recognised effect on survival. Undertaking more risky innovation, for example, may increase the risk of business failure, while more incremental innovation may reduce failure risk. Here, we investigate how firms’ innovation strategy choices – which may reduce the riskiness or costs of innovation and/or increase the innovation rewards – moderate the innovation-survival relationship. Our analysis is based on UK Community Innovation Survey data matched with survival data from firms’ published accounts. We are able to match nearly 80 per cent of UK CIS respondents. Contrary to expectations we find that innovation partnering and intellectual property protection have little or no moderating effect on the innovation-survival relationship. However, receiving public support for innovation has significant positive moderating effects. This suggests the notion of “survival additionality”, i.e. firms receiving public support derive more persistent benefits from innovation than firms which did not receive public support. Specifically, firms which receive public support for innovation are 2.7 per cent more likely to survive for eight years than firms which innovate but without public support. This result is strongest for product and service rather than process change, with implications for innovation policy design and evaluation.
    Keywords: Innovation, survival, strategy, public support, additionality, UK
    JEL: O32 L1 O38 Q34 L26
    Date: 2014–02–02
  7. By: Stephen Roper (Warwick University Business School); Nola Hewitt-Dundas (Queen's University Belfast)
    Abstract: In many countries significant amounts of public funding are devoted to supporting firms’ R&D and innovation projects. Here, using panel data on the innovation activities of Irish manufacturing firms we examine the legacy effects of public subsidies for new product development and R&D. We examine five alternative mechanisms through which such effects may occur: input additionality, output additionality, and congenital, inter-organisational and experiential behavioural additionality. Tests suggest contrasting legacy effects with R&D subsidies generating legacy output additionality effects while new product development subsidies have legacy congenital and inter-organisational behavioural additionality effects. Our results have implications for innovation policy design and evaluation.
    Keywords: innovation policy, additionality, evaluation, Ireland
    JEL: O32 L1 O38 Q34 L26
    Date: 2014–07–01
  8. By: Brigitte Hoogendoorn; Peter van der Zwan; Daniela Guerra
    Abstract: The objective of this paper is to develop a better understanding of how and why small and medium-sized enterprises (SMEs) engage in environmental practices. Two types of environmental practices are distinguished: practices related to production processes (greening processes) and practices related to products and services (greening product and service offerings). Despite a growing literature on socially responsible behavior of large firms, the role of SMEs remains underexposed. This neglect of SMEs is not justified because of the substantial impact of SMEs on the economy and the natural environment. By using unique data for almost 9,000 SMEs across 12 sectors in 38 countries, we study the influences of firm, sector and country characteristics on SMEs’ environmental behavior. Our results suggest that different characteristics have dissimilar influences on both types of environmental practices such as the type of customers served and the stringency of environmental legislation at the country level. Moreover, the dominant idea that small firms are reluctant to invest in environmental practices is clearly more nuanced: size indeed matters however only when greening processes are concerned.
    Date: 2014–05–07
  9. By: Kevin Mole (Warwick University Business School); Robert Baldock (Middlesex University Business School); David North (Middlesex University Business School)
    Abstract: Although they are not the only conduit for knowledge, advisers can diffuse new methods, knowledge and best practice to SMEs Existing work suggests advice as a resource available for the small firm manager. Whether the manager takes that advice depends on the trust between owner-manager and adviser, the degree to which the owner-manager perceives themselves to need advice, the ‘knowledge gap hypothesis’ and the degree to which they feel able to interact with advisers and implement advice. In this paper, we model whether a small firm manager takes advice from formal sources, including public and private suppliers.
    Keywords: business advice, small business, SME policy, SME management, small firms
    JEL: M10 L53
    Date: 2013–09–01
  10. By: Jeroen de Jong
    Abstract: Until seven years ago, user innovation studies focused on specific cases or industries, leaving room for criticism that the phenomenon is marginal. This chapter summarizes and discusses the empirical work concerned with the scope of user innovation in broader samples. A first finding is that user innovation is widespread. The share of firms developing and/or modifying processes for in-house use is generally about 15 to 20 percent, while amongst consumers four to six percent innovated to satisfy personal needs in the past three years. This corresponds with millions of innovating businesses and consumers across the globe. For firms, user innovation indicators measure process-related innovation activities which remain partly invisible in official surveys, while user innovation by individual consumers is not at all present in the official statistics. A second finding is that user innovation is more open than traditional, producer-oriented innovation. Especially innovating consumers do not patent their knowledge, and 10 to 30 percent of them even shares their knowledge freely with other users and/or adopting businesses. Finally, it appears that users’ innovations can be useful to other economic actors. Diffusion mechanisms include free revealing to other users, new venture creation, and adoption by commercial producers. Overall, the empirical studies suggest that user innovation indicators should be part of the official innovation metrics.
    Date: 2014–05–22
  11. By: Michael Anyadike-Danes (Aston Business School); Carl-Magnus Bjuggren (Linköping University, Sweden); Sandra Gottschalk (The Centre for European Economic Research (ZEW) in Mannheim); Werner Hölzl (WIFO, Austria); Dan Johansson (Hui Research); Mika Maliranta (The Research Institute of the Finnish Economy (ETLA)); Anja Myrann (Ragnar Frisch Centre for Economic Research, Norway)
    Abstract: The contribution of different-sized businesses to job creation continues to attract policymakers’ attention, however, it has recently been recognized that conclusions about size were confounded with the effect of age. We probe the role of size, controlling for age, by comparing the cohorts of firms born in 1998 over their first decade of life, using variation across half a dozen northern European countries Austria, Finland, Germany, Norway, Sweden, and the UK to pin down size effects. We find that a very small proportion of the smallest firms play a crucial role in accounting for cross-country differences in job growth. A closer analysis reveals that the initial size distribution and survival rates do not seem to explain job growth differences between countries, rather it is a small number of rapidly growing firms that are driving this result.
    Keywords: birth cohort, firm age, firm size, firm survival, firm growth
    JEL: L25 E24 M13
    Date: 2013–05–02
  12. By: Mariana Mazzucato (SPRU, University of Sussex, UK); Carlota Perez (SPRU, University of Sussex, UK; London School of Economics, UK; Nurkse Institute, Estonia)
    Keywords: Growth policy, innovation, green growth, inclusive growth, technological revolutions, role of government, mission-oriented investments, value creation, definancialisation, respecialisation
    Date: 2014–07
  13. By: Sara Carter (Strathclyde Business School); Samuel Mwaura (Strathclyde Business School)
    Abstract: This paper contributes to our understanding of the finance issues currently facing diverse SMEs by presenting a new analysis of the SME Finance Monitor. While prior studies have contributed substantial evidence regarding the effects of either gender or ethnicity on finance outcomes, these analyses have typically focused on either women-owned or ethnic minority owned enterprises. This study considers the experiences and outcomes of both women-owned and ethnic minority-owned enterprises, including the interaction effects of ethnicity and gender. Central to this analysis is the development of a new typology of borrowers that categorises SMEs across six groups: existing borrowers; new/renewed borrowers; declined borrowers; partial borrowers; potential borrowers; and indifferent non-borrowers. Using this typology as the analytical lens enables a more granular view of the SME Finance Monitor dataset, and reveals both a broader set of potential borrowers and a wider set of antecedents of debt-avoidance than have previously been identified. As prior studies have indicated, gender effects that were notable and significant in the initial phases of the analysis were mainly dissipated when other factors, such as legal form and firm age, were considered. Analyses of ethnicity, however, suggest a different experience. While structural factors such as sector, firm size, the presence of a business plan, firm age, and legal form all impact on finance outcomes, after controlling for these structural factors the relative likelihood of borrowing success remains lower among Black and Minority Ethnic (BME) business owners as compared their White British and Irish (WBI) counterparts.
    Keywords: 0018
    JEL: D1 G21 L26
    Date: 2014–05–01
  14. By: Bonanno, Graziella
    Abstract: Are Information and Communication Technology (ICT) and Research & Development (R&D) inputs or efficiency determinants? This is the topic of the paper which is developed by analysing a sample of 2691 Italian manufacturing firms over the period 2007-2009. The empirical setting is based on a production function estimated through the Stochastic Frontier (SF) approach. ICT and R&D are used once as inputs, once as efficiency determinants (Coelli et al., 1999). Results show that the rates of return of ICT and R&D investments are high (0.08 for ICT and 0.04 for R&D) when they enter into the model only as inputs. We also documented that ICT and R&D contribute positively to explain the efficiency scores.
    Keywords: ICT, R&D, Stochastic Frontier Approach, efficiency
    JEL: D22 D24 L69 O39
    Date: 2014–07–29
  15. By: Stephen Roper (Warwick University Business School); Mark Hart (Aston University Business School)
    Abstract: Among SMEs high growth is often episodic and not sustained. How can we best support SMEs to achieve sustained growth? In this paper we review a number of international support measures designed to give SMEs the capabilities and resources to sustain fast growth. Policy guidelines emerge suggesting the need for partnership, for regionalised delivery and the potential value of holistic supports for sustained growth. Support measures are of three main types: Systemic measures which focus on informational or strategic market failures; Holistic approaches – which combine business development and leadership development; Functional or thematic approaches – which focus more narrowly on financial support, on management and leadership development or technology adoption or use. Reviewing these schemes suggests seven design or implementation guidelines for measures aiming to support sustained growth. These relate both to the effective targeting of growth support measures as well as ensuring that schemes are both effective and efficient.
    Keywords: SME, small business, sustained growth, policy
    JEL: L53 L78
    Date: 2013–09–01
  16. By: Edwin Goñi; William F. Maloney
    Abstract: Using a global panel on research and development (R&D) expenditures, this paper documents that on average poor countries do far less R&D than rich as a share of GDP. This is arguably counter intuitive since the gains from doing the R&D required for technological catch up are thought to be very high and Griffith et al. (2oo4) have documented that in the OECD returns increase dramatically with distance from the frontier. Exploiting recent advances in instrumental variables in a varying coefficient context we find than the rates of return follow an inverted U: they rise with distance to the frontier and then fall thereafter, potentially turning negative for the poorest countries. The findings are consistent with the importance of factors complementary to R&D, such as education, the quality of scientific infrastructure and the overall functioning of the national innovation system, and the quality of the private sector, which become increasingly weak with distance from the frontier and the absence of which can offset the catch up effect. China’s and India’s explosive growth in R&D investment trajectories in spite of expected low returns may be justified by their importing the complementary factors in the form of multinational corporations who do most of the patentable research.
    Keywords: R&D, Technology Adoption, Development, Complementarities, Instrumental Variable Varying Coefficient Models.
    JEL: O1 O32 O33 O4
    Date: 2014–06–19
  17. By: Stuart McDonald (School of Economics, The Universty of Queensland); Joanna Poyago-Theotoky (School of Economics, La Trobe University Rimini Centre for Economic Analysis (RCEA))
    Abstract: We examine the impact of an optimal emissions tax on research and development of emission reducing green technology (E-R&D) in the presence of R&D spillovers. We show that the size and effectiveness of the optimal emissions tax depends on the type of the R&D spillover: input or output spillover. In the case of R&D input spillovers (where only knowledge spillovers are accounted for), the optimal emissions tax required to stimulate R&D is always higher than when there is an R&D output spillover (where abatement and knowledge spillovers exist simultaneously). We also find that optimal emissions taxation and cooperative R&D complement each other when R&D spillovers are small, leading to lower emissions.
    Keywords: Environmental R&D, Green Technology, R&D Spillover, Emissions Tax
    JEL: H23 L11 Q55
    Date: 2014–06
  18. By: Roberta Distante (Fondazione Eni Enrico Mattei, Milan, Italy); Ivan Petrella (University of London, UK); Emiliano Santoro (Catholic University of Milan, Italy and University of Copenhagen, Denmark)
    Abstract: The nexus between firm growth, size and age in U.S. manufacturing is examined through the lens of quantile regression models. A number of interesting features are unveiled that linear frameworks could not detect. Size pushes both low and high performing firms towards the median rate of growth, while age is never advantageous, and more so as firms grow faster.
    Keywords: Firm Growth, Size, Age, Conditional Quantile
    JEL: C14 L1
    Date: 2014–07
  19. By: James Hayton (Warwick University Business School); Gabriella Cacciotti (Warwick University Business School)
    Abstract: The literature on the association between cultural values and entrepreneurial beliefs, motives and behaviours has grown significantly over the last decade. Through its influence on beliefs, motives and behaviours, culture can magnify or mitigate the impact of institutional and economic conditions upon entrepreneurial activity. Understanding the impact of national culture, alone and in interaction with other contextual factors, is important for refining our knowledge of how entrepreneurs think and act. We present a review of the literature with the goal of distilling the major findings, points of consensus and points of disagreement, as well as identify major gaps. Research has advanced significantly with respect to examining complex interactions among cultural, economic and institutional factors. As a result, a more complex and nuanced view of culture’s consequences is slowly emerging. However, work that connects culture to individual motives, beliefs and values has not built significantly upon earlier work on entrepreneurial cognition. Evidence for the mediating processes linking culture and behaviour remains sparse and inconsistent, often dogged by methodological challenges. Our review suggests that we can be less confident, rather than more, in the existence of a single entrepreneurial culture. We conclude with suggestions for future research.
    Keywords: entrepreneurship, culture, national culture, cultural values, entrepreneurial activity, entrepreneurial cognition
    Date: 2014–02–01
  20. By: Schneck, Stefan; May-Strobl, Eva
    Abstract: This paper utilizes German tax data to present evidence about the direct and indirect effects of new firm formation. Cohort analysis is applied to investigate survival, sales, inputs, and value added of start-up firms. Most drop-outs occur in the early years. We show that start-up microenterprises increase economic vitality directly. Turnover and value added are in an approximate proportion of 3:1. With respect to the indirect effects of new firms, we find that one Euro of sales induce considerable indirect effects because 66 Cents are used to buy products and services from incumbents. For this reason, new firms substantially promote economic prosperity of incumbents. Sectoral differences are also indicated, with the manufacturing industry generating highest sales and relying on most inputs in the early periods. -- Dieser Beitrag stellt direkte und indirekte Effekte des Gründungsgeschehens in Deutschland dar. Mit Hilfe des Umsatzsteuerpanels werden Kohortenanalysen angestellt, um die Bestandsfestigkeit, den Umsatz und die Wertschöpfung von Existenzgründungen zu beschreiben. Es wird gezeigt, dass viele Unternehmen in frühen Jahren ausscheiden. Umsatz und Wertschöpfung stehen in einem Verhältnis von etwa 3:1. Neben diesen direkten ökonomischen Effekten gehen auch indirekte Effekte von neuen Unternehmen aus. Der Vorleistungsbezug von Existenzgründungen zeigt, dass rund 66 Cent eines umgesetzten Euros für Waren und Dienstleistungen von Bestandsunternehmen eingesetzt werden. Aus diesem Grund tragen Existenzgründungen auch in beachtlichem Maße zur Prosperität von bereits bestehenden Unternehmen bei.
    Keywords: entrepreneurship,direct effects,indirect effects,sales
    JEL: L26 L29
    Date: 2014
  21. By: Alexander Klein; Tim Leunig
    Abstract: This paper examines Gibrat’s law in England and Wales between 1801 and 1911 using a unique data set covering the entire settlement size distribution. We find that Gibrat’s law broadly holds even in the face of population doubling every fifty years, an industrial and transport revolution, and the absence of zoning laws to constrain growth. The result is strongest for the later period, and in counties most affected by the industrial revolution. The exception were villages in areas bypassed by the industrial revolution. We argue that agglomeration externalities balanced urban disamenities such as commuting costs and poor living conditions to ensure steady growth of many places, rather than exceptional growth of few.
    Keywords: Gibrat’s law; city-size distribution; industrial revolution
    JEL: I3
    Date: 2013–09
  22. By: James Hayton (University of Warwick Business School); Paul Olk (Daniels College of Business, University of Denver)
    Abstract: Our study draws from learning theory and path dependence research to hypothesize how companies build the capability for managing strategic alliance formation processes. Specifically, we focus on firms’ patterns of R&D consortia formation processes in the United States. Prior research identified two different consortium formation processes: emergent and engineered processes. This study explores the sequences of these processes for 1063 companies entering into alliances with 737 US-based consortia between 1984-2005, resulting in 3767 independent consortium joining events. Our results suggest that companies build alliance formation capabilities through a combination of replication, adaptability and flexibility. In showing these results, our study contributes to the alliance capability literature, the alliance formation process literature and research into organizational learning and path dependence.
    Keywords: alliance capability, formation process, R&D consortia, organizational learning, path dependence
    Date: 2013–11–02
  23. By: Gry Agnete Alsos (University of Nordland); Sara Carter (Strathclyde Business School); Elisabet Ljunggren (Nordland Research Institute)
    Abstract: This paper considers the entrepreneur within the context of the family and the household. We explore how families and households interact with and influence business decisions, and give equal prominence to the role of family strategies as well as to business strategies in understanding the development of the family in business. Household and family are distinctive concepts that partly overlap; a focus on the household allows consideration of economic activities, work and residence, while a focus on the family is confined to issues such kinship and marriage relationships that bind together individuals. The paper explores the relationship between the household and the enterprise, drawing attention to the intricate relationship that exists between the two spheres. Although entrepreneurship researchers have rarely discussed the role of the household in business decisions, disciplines such as sociology and anthropology have provided valuable insights into the nature of household dynamics and kinship. These factors are known to have a profound influence on both the tangible and intangible resources available to entrepreneurial ventures. This paper addresses some of the omissions of the entrepreneurship subject domain by focusing attention on household dynamics, kinship relations and the role of the household in recognizing opportunities and providing resources to new and existing ventures.
    Keywords: family entrepreneurship, households, portfolio businesses, rural and farm-based enterprise
    JEL: I31 L25 L26
    Date: 2013–10–01
  24. By: KINUKAWA Shinya
    Abstract: Firms apply for patents not only to obtain the right to exclude but also to prevent their rivals from obtaining patents of competing technologies. Patent applications for the latter purpose are usually called "defensive applications," which have caused the low appraisal rate of Japanese patents. However, since every patent application is published after 18 months from the application date, the defensive applications can be information sources of new technologies for firms that are not directly competing against the applicants, and the external effects of the defensive applications on different technological fields may be growing in the open innovation era. This paper examines such external effects in the field of inkjet technology using patent citation data, and confirms that even patent applications without examination requests had the effects. Moreover, this paper examines the effects of two patent policy changes on firms' patent applications: the temporary decrease in the novelty standard in the 1990s and the shortening of the examination request period since the 2000s. The regression results show that the former and the latter increased and decreased the number of patent applications, respectively.
    Date: 2014–07
  25. By: Ruslan Aliyev; Dana Hajkova; Ivana Kubicova
    Abstract: This paper uses firm-level financial data for Czech firms and tests for the role of companies’ financial structure in the transmission of monetary policy. Our results indicate that higher short-term interest rates coincide with lower shares of total debt, short-term bank loans, and long-term debt. We find that firm-specific characteristics, such as size, age, collateral, and profit, affect the way in which monetary policy changes are reflected in the external financing decisions of firms. These findings indicate the presence of informational frictions in credit markets and hence provide some empirical evidence of the existence of broad credit and relationship lending channels in the Czech Republic.
    Keywords: Credit channel, Czech Republic, external finance, monetary policy transmission
    JEL: E44 E51 E52 G21 G32
    Date: 2014–06

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