nep-sbm New Economics Papers
on Small Business Management
Issue of 2015‒03‒22
twenty papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Technological Competencies and Firm Performance: Analyzing the Importance of Internal and External Competencies By Grillitsch, Markus; Nilsson, Magnus
  2. Innovation Strategies and Firm Performance By Karlsson, Charlie; Tavassoli, Sam
  3. Eco-Innovation and Firm Growth: Do Green Gazelles Run Faster? Microeconometric Evidence from a Sample of European Firms By Alessandra Colombelli; Jackie Krafft; Francesco Quatraro
  4. Absorptive Capability and Knowledge Tacitness in the Transfer of Knowledge in the Agrifood Cluster of the Southeast of Spain By Sánchez-Pérez, Manuel; Bourlakis, Michael
  5. Firms’ Innovation Strategies Analyzed and Explained By Tavassoli , Sam; Karlsson , Charlie
  6. Knowlegde Spillovers, absorptive capacity and growth: An industry-level Analysis for OECD countries By Ioannis Bournakis; Dimitris Christopoulos; Sushanta Mallick
  7. Innovation and Productivity in Services: Evidence from Chile By Roberto Alvarez; Andrés Zahler; Claudio Bravo-Ortega
  8. Corporate Governance and Sectoral Patterns of Innovation: Evidence from Italian Manufacturing Industries By Filippo Belloc; Eleonora laurenza; Maria Alessandra Rossi
  9. Innovation Policy for Grand Challenges. An Economic Geography Perspective By Coenen , Lars; Hansen , Teis; Rekers , Josephine V.
  10. Exchange Rate, Marginal q and Investment Behavior of Small and Medium-Sized Enterprises in Japan: Time Series Evidences of Manufacturing Industries By Masafumi Kozuka
  11. SME Development: Narrowing the Development Gap in the ASEAN Economic Community By Aldaba, Rafaelita M.
  12. The Moderating Effect of Environmental Turbulence in the Relationship between Entrepreneurial Management and Firm Performance By Pratono, Aluisius Hery; Mahmood, Rosli
  13. High income inequality as a structural factor in entrepreneurial activity By Antonio Lecuna
  14. Factors Influencing the Performance of German Food SME Formal Networks By Deiters, Jivka; Heuss, Esther; Schiefer, Gerhard
  15. CEO Duality and Firm Performance Revisited By Mohammadi, Ali; Basir, Nada O.; Lööf, Hans
  16. Innovation through Networking: The Case of the Agricultural Sector By Lambrecht, Evelien; Kühne, Bianka; Gellynck, Xavier
  17. Exploration and Exploitation Innovations in the Food Firms By Sánchez-Pérez, Manuel; Marín-Carrillo, María Belén; Bourlakis, Michael
  18. Access to Banking Finance and Exporting By Roberto Alvarez; Ricardo A. Lopez
  19. The 2014 EU Industrial R&D Investment Scoreboard By Hector Hernandez; Fernando Hervas; Alexander Tuebke; Mafini Dosso; Antonio Vezzani; Sara Amoroso; Nicola Grassano
  20. The determinants of entrepreneurship in developing countries By Calá, Carla Daniela; Arauzo-Carod, Josep-Maria; Manjón-Antolín, Miguel

  1. By: Grillitsch, Markus; Nilsson, Magnus
    Abstract: In this paper, we analyze the relationship between technological competencies (TC) and firm performance. Theoretically, the importance of TC is well established and widely accepted. Therefore, it is surprising that a number of empirical studies have been unable to confirm a substantial positive relationship between TC and firm performance. We identify two major reasons for this: [i] affected by the availability and choice of indicators existing studies are often biased towards large firms; and [ii] they frequently do not consider both internal and potential access to firm-external TC. This paper discusses conceptually the interplay between firm-internal and firm-external TC as well as the mediating effect of firm size. These relationships are then analyzed empirically using Swedish micro data on 15,682 firms in 290 Swedish municipalities. Novel indicators based on occupational statistics are combined with measures of time-distance accessibility to study internal and external TC. The results provide evidence for a positive relationship between firm growth and TC. In particular, the combination of firm-internal and firm-external competencies seems to be conducive for growth. Lastly, our study suggests that firm size is an important factor to further our understanding about these relationships. Based on this we identify a number of future research questions to be addressed.
    Keywords: technological competencies, firm performance, accessibility, knowledge, innovation, geography, Agribusiness, Institutional and Behavioral Economics,
    Date: 2014–10
  2. By: Karlsson, Charlie (Centre of Excellence for Science and Innovation Studies (CESIS), Jönköping International Business School, & Blekinge Institute of Technology); Tavassoli, Sam (Blekinge Institute of Technology, Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE), & Lund University)
    Abstract: This paper analyzes the effect of various innovation strategies of firms on their future performance, captured by labour productivity. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behaviour of firms over a decade, i.e. from 2002 to 2012. We distinguish between sixteen innovation strategies, which compose of Schumpeterian four types of innovations, i.e. process, product, marketing, and organizational (simple innovation strategies) plus various combinations of these four types (complex innovation strategies). The main findings indicate that those firms that choose and afford to have a complex innovation strategy are better off in terms of their future productivity in compare with both those firms that choose not to innovative (base group) and those firms that choose simple innovation strategies. Moreover, not all types of complex innovation strategies affect the future productivity significantly; rather, there are only few of them. This necessitates a purposeful choice of innovation strategy for firms.
    Keywords: Innovation Strategy; firm performance; productivity; firm level; Community Innovation Survey; Panel
    JEL: D22 L20 O31 O32
    Date: 2015–03–16
  3. By: Alessandra Colombelli (DIGEP, Politecnico di Torino; GREDEG-CNRS; BRICK, Collegio Carlo Alberto); Jackie Krafft (Université Nice Sophia Antipolis; GREDEG-CNRS); Francesco Quatraro (Université Nice Sophia Antipolis and GREDEG-CNRS; Collegio Carlo Alberto; Department of Economics and Statistics Cognetti de Martiis, University of Torino)
    Abstract: This paper investigates the impact of eco-innovation on firms' growth processes, with a special focus on gazelles, i.e. firms' showing higher growth rates than the average. In a context shaped by more and more stringent environmental regulatory frameworks, we posit that inducement mechanisms stimulate the adoption of green technologies, increasing the derived demand for technologies produced by upstream firms supplying eco-innovations. For these reason we expect the generation of green technologies to trigger sales growth. We use firm-level data drawn from the Bureau van Dijk Database, coupled with patent information obtained from the OECD Science and Technology Indicators. The results confirm that eco-innovations are likely to augment the effects of generic innovation on firms' growth, and this is particularly true for gazelles, which actually appear to run faster than the others.
    Keywords: Gazelles, Eco-Innovation, firms' growth, Inducement mechanisms, derived demand, WIPO Green Inventory
    JEL: L10 L20 O32 O33 Q53 Q55
    Date: 2015–03
  4. By: Sánchez-Pérez, Manuel; Bourlakis, Michael
    Abstract: The OECD (1997) conceives a national innovation system (NIS) as “technology and information among people, enterprises and institutions are key to the innovative process” (p. 7). Innovation is conceived as the result of complex set of relationships among actors in the system, which includes companies, universities and research centres. In actual knowledge-based economies, industry-links are essential for economic development and progress (Ahrweiler et al., 2011). They are essential for building up networks of relationships that are necessary for any firm to innovate (Freeman 1987, 1992). In particular, many influential studies have identified the links between firm innovation and competitive advantage at the national level (Porter, 1990). Lundvall (1992) describes characteristics of NIS, emphasizing the importance or learning and how small countries, with limited public budgets and few large corporations, have selected areas of innovation strength and are able to absorb knowledge and innovations from elsewhere (Cooke et al., 1997). Thus, the vision of a NSI is just beyond the technological advances, “but is more broadly on the factors influencing national technological capabilities” (Nelson & Rosenberg, 1993: 4).
    Keywords: Agribusiness,
    Date: 2014–10
  5. By: Tavassoli , Sam (CIRCLE, Lund University and Blekinge Institute of Technology, Karlskrona); Karlsson , Charlie (Blekinge Institute of Technology, Karlskrona, Centre of Excellence for Science and Innovation Studies, KTH, Stockholm and Jönköping International Business School)
    Abstract: This paper analyzes various innovation strategies of firms. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behavior of firms over a ten-year period, i.e. between 2002 and 2012. We distinguish between sixteen innovation strategies, which compose of Schumpeterian four types of innovations (process, product, marketing, and organizational) plus various combinations of these four types. First, we find that firms are not homogenous in choosing innovation strategies, instead, they have a wide range of preferences when it comes to innovation strategy. Second, using Transition Probability Matrix, we found that firms also persist to have such a diverse innovation strategy preferences. Finally, using Multinomial Logit model, we explained the determinant of each and every innovation strategies, while we gave special attention to the commonly used innovation strategies among firms.
    Keywords: Innovation strategy; product innovations; process innovations; market innovations; organizational innovations; innovation strategies; heterogeneity; firms; persistence; Community Innovation Survey
    JEL: D22 L20 O31 O32
    Date: 2015–03–19
  6. By: Ioannis Bournakis; Dimitris Christopoulos; Sushanta Mallick
    Abstract: Spillovers have usually been undertaken at the country level, the spillover effects can be more definitive only if the analysis is conducted at the industry-level. This paper therefore attempts to identify spillovers by disentangling technological innovations into intra- and inter-national knowledge innovations at industry level in driving per capita output growth. Our main findings are first, that there is evidence for a robust positive relationship between R&D, human capital and output growth across these countries at industry-level. Second, the potential of international spillover gains is greater in countries with higher human capital and in industries whose pattern of production is more R&D oriented, import intensive, and dependent on vertical FDI. Finally, significant heterogeneity is found between high and low-tech industries with high-tech group displaying greater knowledge spillovers, suggesting that low-tech industries need to be more innovative in order to absorb the technological advancements of domestic and international rivals.
    Keywords: Knowledge spillover, Industry-level productivity, R&D
    JEL: F1 O3 O4
    Date: 2015–03
  7. By: Roberto Alvarez; Andrés Zahler; Claudio Bravo-Ortega
    Abstract: This paper analyzes empirically the relationship between innovation and productivity in the Chilean services sector. Consistent with recent evidence on developed countries, we find that services firms are as innovative as firms in the manufacturing industry. In the basic model, we also find that both industries have similar determinants of the investment in innovation and the probability of introducing innovations (products or process), such as size and export status. In several extensions we find similar roles for technological and non-technological innovation in labor productivity and for determinants such as skill intensity and financial restrictions. In general, our evidence suggests that that innovation input and output is associated with improvements in productivity in both sectors. As extension of the work of Crespi and Zuñiga (2012) we test whether financial constraints are more relevant for either manufactures or services, finding that these seem to be active just for the services sector. We also test for the role of skills finding that they play a central role on the decision to spend in R&D and labor productivity.
    Date: 2013–10
  8. By: Filippo Belloc; Eleonora laurenza; Maria Alessandra Rossi
    Abstract: The paper explores the question whether the relationship between corporate governance dimensions and innovation at the firm level is affected by sectoral characteristics, by analyzing Italian manufacturing sectors. We estimate the impact of corporate governance features on patenting activity for two sub-groups of Italian firms, identified on the basis of the well-established distinction between Schumpeter Mark I (creative destruction) and Schumpeter Mark II (creative accumulation) sectors. We use a unique dataset on about 35.000 Italian manufacturing firms over the 2002-2007 period and employ a hurdle model for zero-inflated data in order to study simultaneously (i) the firm's ability to be innovative rather than non innovative and (ii) its ability to be relatively more innovative than the other innovative firms. We find that in Schumpeter Mark I sectors, a concentrated ownership structure has a positive effect on innovation, while the opposite is true for Schumpeter Mark II sectors. We interpret this result, arguing that, in more unstable markets, a concentrated ownership reduces agency costs to a larger extent than it exacerbates asymmetric bargaining problems. We find also that Schumpeter Mark I environments are associated to a negative effect of debt exposure, due to the higher uncertainty and agency costs. These findings are robust to a number of identification issues, including the possible endogeneity of corporate ownership structures. Our results may allow to make sense of the contradictory findings of the literature on corporate governance and innovation.
    Keywords: corporate governance, innovation, Italian manufacturing sectors, hurdle models.
    JEL: C30 G30 L60 O30
    Date: 2015–03
  9. By: Coenen , Lars (CIRCLE, Lund University); Hansen , Teis (Department of Human Geography and CIRCLE, Lund University); Rekers , Josephine V. (Department of Human Geography and CIRCLE, Lund University)
    Abstract: Grand challenges such as climate change, ageing societies and food security feature prominently on the agenda of policymakers at all scales, from the EU down to local and regional authorities. These are challenges that require the input and collaboration of a diverse set of societal stakeholders to combe different sources of knowledge in new and useful ways – a process that has occupied the minds of economic geographers looking at innovation in recent decades. Work in economic geography has informed innovation policies that tackle infrastructural, capabilities, network and institutional failures that may be found in different types of regions. How can these insights improve researchers’ and policymakers’ understanding of the potential for innovation policies to address grand challenges? In this paper we review these insights and then identify areas that push economic geographers to go beyond their previous focus and interests, notably by considering innovation policy in light of transformational rather than mere structural failures.
    Keywords: Innovation policy; grand challenges; economic geography; innovation systems failures; transformational systems failure
    JEL: O38 Q01
    Date: 2015–03–19
  10. By: Masafumi Kozuka (Graduate School of Economics, Kobe University)
    Abstract: In this paper, we investigate Grangerfs causality among the exchange rate, Tobinfs marginal q, and investment-capital ratio with quarterly data on firms categorized small and medium-sized enterprises (SMEs) in Japan. We utilize the data of following industries: chemical, iron and steel, production machinery, electric machinery and equipment, automobile and accessories and all manufacturing. The empirical results we obtain show that the null hypotheses of no Grangerfs causality from the exchange rate to other variables, investment and marginal q, are accepted in all industries. The reason is the lower percentage of export by SMEs. Thus, it is considered that the effects of Abenomics on SMEs are limited, and that other kinds of reflation measures for SMEs are needed.
    Keywords: marginal q; small and medium-sized enterprises; LA-VAR model; irreversibility; exchange rate
    JEL: C32 F22
    Date: 2015–03
  11. By: Aldaba, Rafaelita M.
    Abstract: This paper evaluates the implementation of the 2010–2015 ASEAN Strategic Action Plan for Small and Medium Enterprises (SME) Development and the 2004–2009 ASEAN Policy Blueprint for SME Development. The initial interviews and survey results yielded low average effectiveness scores for the ASEAN Strategic Action Plan for SME Development. The scores ranged from without- to no- or little concrete impacts on the implementation of various programs covering access to financing, facilitation, technology development, promotion, human resource development, and other regional SME initiatives. Results for the ASEAN Policy Blueprint for SME Development also indicated low average effectiveness scores on the implementation of programs covering human resource development and capacity building, enhancing SME marketing capabilities, access to financing, access to technology, and creating a conducive policy environment. In the last decade, manufacturing SMEs have not substantially generated sufficient value added and employment to increase the country`s overall manufacturing growth. This weak performance of SMEs has been largely attributed to barriers particularly access to finance, technology, and skills as well as information gaps and difficulties with product quality and marketing. Within this light, the government can facilitate SMEs` gainful participation in the ASEAN by designing a coherent set of policies and programs that are aligned with regional SME development initiatives to address financing issues; improve the technological capabilities and strengthen supply chains (to enable SMEs to move up the technology scale); and create an enabling environment for SMEs to survive and realize their potentials to grow. To improve the effectiveness of SME program initiatives at the ASEAN level, it is important to complement the implementation of these regional initiatives with domestic or within-the-country policy reforms and programs.
    Keywords: Philippines, small and medium enterprises (SMEs), ASEAN Strategic Action Plan for SME Development, ASEAN Policy Blueprint for SME Development
    Date: 2014
  12. By: Pratono, Aluisius Hery; Mahmood, Rosli
    Abstract: Contingency theory points out the adaptive management is crucial point to sustainable firm performance. This research aims to determine the relative importance of a set of variables comprising the four entrepreneurial management variables, i.e. strategic orientation, organization culture, organization structure, and reward system, and a set of environmental turbulence variables in predicting firm performance. This research uses firm-level data with observed population of this research is SMEs in Surabaya, Indonesia. Through adopting hierarchical regression approach and partial least square method, this study indicates that moderating effect of environmental turbulence changes the direction of relationship between entrepreneurial management and firm performance. During low environmental turbulence, entrepreneurial management has positive impact on firm performance, but the direction changes. Entrepreneurial management has negative impact on firm performance during high environmental turbulence.
    Keywords: firm performance, entrepreneurial management, environmental turbulence
    JEL: M0 M00 M1 M12 M14 M2 M5 M52
    Date: 2014
  13. By: Antonio Lecuna (School of Business and Economics, Universidad del Desarrollo)
    Abstract: Statistical tests on a panel of data from 54 countries over the 2004–2009 period support the proposition that high income inequality and entrepreneurial activity share a positive linear relationship. In a novel approach, the dependent variable is defined from two independent and uncorrelated perspectives: (1) the World Bank Group Entrepreneurship Snapshot, which measures new business entry density based on secondary official sources; and (2) the Total Early Stage Entrepreneurial Activity of the Global Entrepreneurship Monitor project, which is a survey-based measure of formal and informal entrepreneurial participation rates. The empirical strategy is based on the logic that economies with increasing concentrations of wealth tend to encourage entrepreneurial activity because entrepreneurs accumulate more income than workers. Following the disequalizing model, once this inequality appears, it is reinforced in successive generations. The intuition behind this outcome is that a certain level of initial capital is required to establish a new enterprise, which implies that the probability of becoming an entrepreneur increases if an individual has inherited wealth.
    Keywords: Entrepreneurship, income inequality, institutions, public policy.
    JEL: L26
    Date: 2014–12
  14. By: Deiters, Jivka; Heuss, Esther; Schiefer, Gerhard
    Abstract: The food sector in Europe can be characterised as a complex, global and dynamically changing network of trade streams, food supply network relations and related product flows and offers a big spectrum for economic output and employment. Innovation isimportant for the competitivenessof the food industry that is to a large extent comprised by small and medium sized enterprises (SMEs). Furthermore innovation has grown extremely subordinate to interaction in networks. Network initiatives that could provide appropriate support involve social interaction and knowledge exchange, learning and competence development, and coordination (organization) and management of implementation. This paper was designed to assess the factors that affect the performance of German food SME formal networks. It also addressed the consequences at the network and macro level. The analysis was explored by using the laddering technique based on means-end chain theory. These findings will help to build up a “network learning toolbox” that is adapted to the particular requirements of the different segments of the target group of SMEs, network managers and policy makers. The “network learning toolbox” should improve the network learning, which drives to raised innovation, economic growth and sustainable competitive advantage for food SMEs.
    Keywords: Factors, performance, networks, food, Agribusiness,
    Date: 2014–10
  15. By: Mohammadi, Ali (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Basir, Nada O. (Faculty of Business and IT, University of Ontario Institute of Technology); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper replicates and extends the empirical work of Boyd’s 1995 article: CEO Duality and Firm Performance: A Contingency Model. We retest Boyd’s hypotheses using a database of over 11,000 Swedish firms from the year 2005 to 2009. Similar to Boyd, we find that CEO duality is positively correlated to firm performance and the effect varies across environmental dimensions of munificence, dynamism and complexity. Using quantile regression, we also show that the positive impact of CEO duality increases by firm performance. Our findings hold after we control for potential endogeneity concerns.
    Keywords: CEO duality; boards of directors; agency theory; stewardship theory; replication
    JEL: G30 G34 L25
    Date: 2015–03–13
  16. By: Lambrecht, Evelien; Kühne, Bianka; Gellynck, Xavier
    Abstract: Innovation is widely recognized as being an important strategic tool for companies to increase their competitive advantage. Hereby, networks have become increasingly important as external sources for the necessary knowledge, ideas and financial resources. The main contribution of this paper is to shed light on how different network partners can explain or facilitate the different types of innovations in the agricultural sector. In contrast to other studies, we make a distinction between all four types of innovation: product, process, marketing and organizational innovation. Thus, this study has the objective to gain insight into the innovation process of farmers in terms of how they innovate, which network partners they consult in relation to innovation type, the obstacles they face, and where the network activities could be better aligned with the needs of the farmers, which could help to enable them to optimally support innovation and networking. The study is based on 36 in-depth interviews with farmers spread over five subsectors in Flanders (northern Belgium). Our most important findings are that the consulted partners and the observed barriers are different dependent on the innovation type. Hence, our study delivers a set of valuable insights and implications for farmers, network coordinators and policymakers. Farmers must be aware of the importance of partner suitability and network heterogeneity for the innovation type they are aiming at. Furthermore, farmers have to be aware of the fact that efficient networking is not the optimisation of single relationships independently of each other, but instead the management of synergies and coordination of all relationships in an efficient way. In addition, network coordinators should set up a clear strategy and communicate for which innovations their network can advise and help the farmer. These first conclusions should be further proven and supported by future research in order to draw general conclusions for the agricultural sector. As the sample of our study is limited to 36 respondents spread over five subsectors, it is necessary to conduct a quantitative study to achieve a representable sample and to include more subsectors. In addition, the study is limited to the Flemish region and literature in other countries about this subject is scarce. Hence, other researchers are encouraged to investigate if the results of Flanders can be supported by other regions in Europe and the world.
    Keywords: Farmers, network, innovation, Flanders, qualitative research, Agribusiness,
    Date: 2014–10
  17. By: Sánchez-Pérez, Manuel; Marín-Carrillo, María Belén; Bourlakis, Michael
    Abstract: In a context of increasingly intense competition, creating a unique mix of value through innovation has been considered one tenet for creating a competitive advantage (Porter, 1996). During the past decades, innovation has become a central issue of strategic management (Nag et al., 2007). The literature has identified several problems in relation to firm failure innovation decisions, focusing on the supply-side (organizational competence, Henderson 2006; dependence of actual most profitable customers, Christensen, 1997; out-of-date competence due to technological breakthroughs, Tushman & Anderson, 1986), and on the demand-side (market turbulence, Abernathy & Clark 1985; institutional environment, Chesbrough, 2001).
    Keywords: Agribusiness, Food Consumption/Nutrition/Food Safety,
    Date: 2014–10
  18. By: Roberto Alvarez; Ricardo A. Lopez
    Abstract: Using firm-level data from the manufacturing sector of Chile for the period 1995-2002, we examine whether access to finance increase the probability of exporting. To do that, we exploit information of firms’ access to banking debt and changes in the real exchange rate (RER) to identify the causal effect of finance on exporting. This is an interesting setting given that the Chilean economy experienced a sustained RER depreciation since 1999, increasing export profitability. We use these changes in RER as a quasi-experiment to study the impact of access to banking finance. Our results show that RER depreciations increase the probability of exporting for firms with access to banking finance and especially for firms in industries with higher financial needs. These results are robust to control for other firm characteristics affecting the probability of exporting and also to time varying industry-specific shocks that may affect export performance and banking finance.
    Date: 2014–05
  19. By: Hector Hernandez (European commission JRC IPTS); Fernando Hervas (European commission JRC IPTS); Alexander Tuebke (European commission JRC IPTS); Mafini Dosso (European commission JRC IPTS); Antonio Vezzani (JRC-IPTS); Sara Amoroso (European commission JRC IPTS); Nicola Grassano (European commission JRC IPTS)
    Abstract: The 2014 "EU Industrial R&D Investment Scoreboard" (the Scoreboard) contains economic and financial data for the world's top 2500 companies ranked by their investments in Research and Development (R&D). The sample contains 633 companies based in the EU and 1867 companies based elsewhere. The Scoreboard data are drawn from the latest available companies' accounts, i.e. usually the fiscal year 2013/14. Key findings of the 2014 Scoreboard comprise: - The world top 2500 R&D investors continued to increase their investment in R&D (4.9%), well above the growth of net sales (2.7%). The 633 EU companies increased R&D by 2.6% and decreased sales by 1.9%. - Volkswagen leads the global ranking for the second consecutive year, showing again a remarkable increase of R&D (23.4%, up to €11.7bn). Second continues to be Samsung, showing also an impressive R&D increase of 25.4%. - EU companies in the automobile sector, accounting for one quarter of the total EU’s R&D, continued to increase significantly their R&D (6.2%). This reflects the good performance of automobiles companies based in Germany (9.7%) that account for three quarters of this sector’s R&D in the EU. - The poor R&D performance of EU companies in high-tech sectors such as Pharmaceuticals (0.9%) and Technology Hardware and equipment (-5.4%) weighed down the total R&D increase of the EU sample. The overall amount invested in R&D by EU companies in high-tech sectors represents 40% of the amount invested by their US counterparts and the gap between the two company samples is increasing with time.
    Keywords: Investment, reseach, development
    Date: 2014–12
  20. By: Calá, Carla Daniela; Arauzo-Carod, Josep-Maria; Manjón-Antolín, Miguel
    Abstract: We address the question of what determines entrepreneurship in developing countries. In particular, because of the influence that this may have on the design of entrepreneurship policies, our main concern is whether the determinants of entrepreneurship are the same and/or have the same impact in developed and developing countries. To this end, we discuss the arguments put forward in the literature in support of the existence of differences in the determinants of entrepreneurship between developed and developing countries. We also analyse the results found in empirical studies on the determinants of formal firm entry (following the World Bank, our proxy of entrepreneurship) in developing countries and compare these results with those typically found in developed countries. Our main conclusion is that policy makers in developing economies should be careful when using evidence from developed countries to design entrepreneurship-promoting policies.
    Keywords: Emprendedorismo; Creación de Empresas; Países en Desarrollo;
    Date: 2015

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