nep-sbm New Economics Papers
on Small Business Management
Issue of 2017‒02‒26
twenty-two papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Assessing the Efficiency Costs of Vietnam's ‘Missing’ Small and Medium Sized Enterprises: A Panel Data Investigation By Trung Dang Le and Paul Shaffer
  2. University Students and Entrepreneurship. Some insights from a population-based survey By Ferrante, Francesco; Federici, Daniela; Parisi, Valentino
  3. Financing approaches for tourism SMEs and entrepreneurs By OECD
  4. Race and nascent entrepreneurship: The role of skills, access to financing, and entrepreneurship training By Marios Michaelides
  5. Firm Growth Dynamics and Financial Constraints: Evidence from Serbian Firms By Milos Markovic; Michael A. Stemmer
  6. Demand Fluctuations and Innovation Investments: Evidence from the Great Recession in Spain By Armand, Alex; Mendi, Pedro
  7. Employment Effects of Innovations over the Business Cycle: Firm-Level Evidence from European Countries By Bernhard Dachs; Martin Hud; Christian Koehler; Bettina Peters
  8. The cognitive and geographical structure of knowledge links and how they influence firms’ innovation performance By Broekel, Tom; Boschma, Ron
  9. Innovation persistence and employment dynamics By Stefano Bianchini; Gabriele Pellegrino
  10. Employment and productivity growth in Tanzania’s service sector By Mia Ellis; Margaret McMillan; Jed Silver
  11. Persistence of Regional Entrepreneurship: Causes, Effects, and Directions for Future Research By Michael Fritsch; Michael Wyrwich
  12. Back to Basics: Why do Firms Invest in Research? By Ashish Arora; Sharon Belenzon; Lia Sheer
  13. One Lab, Two Firms, Many Possibilities: on R&D outsourcing in the biopharmaceutical industry By Billette de Villemeur, Etienne; Versaevel, Bruno
  14. Innovation strategies of energy firms By Maria Teresa Costa-Campi; Néstor Duch-Brown; José García-Quevedo
  15. Older entrepreneurs-by-necessity using fuzzy set methods: differences between developed and developing countries By Molina, Jose Alberto; Ortega, Raquel; Velilla, Jorge
  16. Self-Employment Dynamics and the Returns to Entrepreneurship By Eleanor W. Dillon; Christopher T. Stanton
  17. Bankruptcy Spillovers By Shai Bernstein; Emanuele Colonnelli; Xavier Giroud; Benjamin Iverson
  18. Feminization of entrepreneurship in developing countries By Molina, Jose Alberto; Ortega, Raquel; Velilla, Jorge
  19. Análisis de la actividad emprendedora de los sectores de la transformación y servicios industriales en Cartagena de Indias - Colombia By Jairo Orozco Triana; Carlos Gabriel Vargas Arrieta; José David Florez Reyes
  20. Growth and survival of the `fitter'? Evidence from US new-born firms By Giovanni Dosi; Emanuele Pugliese; Pietro Santoleri
  21. Support for the SME Supporting Factor - Multi-country empirical evidence on systematic risk factor for SME loans By M. Dietsch; K. Düllmann; H. Fraisse; P. Koziol; C. Ott
  22. The role of innovation and agglomeration for employment growth in the environmental sector By Horbach, Jens; Janser, Markus

  1. By: Trung Dang Le and Paul Shaffer
    Abstract: This article investigates whether there are efficiency costs associated with the pronounced rightward skew in the firm size distribution, or Vietnam's ‘missing small and medium size enterprise (SMEs)’, drawing on panel data analysis of firm growth and survival. Specifically, it examines if factor allocation biases with respect to credit, preferable treatment of state owned enterprises, barriers to entry into export markets and economies of scale are important determinants of growth rates and survival probabilities of small, medium and large-sized firms. Overall, findings on the earlier variables do not support the view that there are large efficiency costs associated with Vietnam's ‘missing SMEs’. Together with other results in the literature with do not find significant equity costs associated with Vietnam's ‘missing SMES’, these findings raise questions about policy initiatives in support of SMEs in Vietnam, such as the National SME Support program, in particular, through improved access to credit.
    Keywords: firm survival, firm growth, SMEs, panell data, Vietnam
    Date: 2017–02–16
  2. By: Ferrante, Francesco; Federici, Daniela; Parisi, Valentino
    Abstract: Start-ups founded by university students and graduates play a substantial role in bringing new knowledge to the market and in employment creation; a role that appears to be even more important than the one played by the typical technology transfer activities carried out by universities, i.e. patenting and licensing activities, or spin-offs founded by academic staff. Indeed, robust empirical evidence suggests that entrepreneurs’ education is a good predictor of firms’ performance. Unfortunately, data show that the share of Italian entrepreneurs with tertiary educations is quite small, and this is especially the case of the younger generation. In this paper, we use a population-based approach to explore entrepreneurship among 61,115 graduates, alumni of the 64 Italian universities that belong to the AlmaLaurea consortium, in the second half of 2014, at the time when they completed their academic experience. We detect various levels of engagement and intentions to be involved in entrepreneurship, and we assess which factors appear to weigh more in a positive or negative manner. The bad news is that also our analysis finds that the share of Italian graduates who have started a business after their enrolment at university (1.3%) or who have taken concrete actions to start a business (4.5%) is quite small. The good news is that the number of intentional, i.e. potential highly educated, entrepreneurs among university students is much larger (at least 23%). On the basis of our results, we argue that the provision by universities of entrepreneurial education and training, internships, and ICT skills can be effective tools with which to cultivate entrepreneurial attitudes and skills, thereby fostering entrepreneurship and entrepreneurship among university graduates and enhancing their employability.
    Keywords: Entrepreneurship, university, start up, students, education
    JEL: I23 J21 J24 L26
    Date: 2017–02–20
  3. By: OECD
    Abstract: Access to financing is vital to promote entrepreneurship and SME development and build an innovative, competitive and sustainable tourism sector. This report examines mechanisms to improve access to finance for tourism SMEs and entrepreneurs at each stage of the business lifecycle, with a particular emphasis on small and micro-enterprises. It discusses key issues and policy considerations to help improve tourism SME financing conditions, broaden the range of financing instruments available and support uptake of available financing instruments. Case studies of financing approaches in a number of countries support the policy discussion and provide technical information. The paper captures the perspectives of policy makers, financing agencies and institutions, and the tourism industry, and has benefitted from significant contributions and inputs from 21 countries: Austria, Canada, Chile, Croatia, Denmark, Egypt, France, Germany, Greece, Hungary, Japan, Mexico, the Netherlands, New Zealand, Norway, the Philippines, Portugal, the Russian Federation, Slovenia, Sweden and Switzerland.
    Date: 2017–02–22
  4. By: Marios Michaelides
    Abstract: This paper examines racial disparities in entrepreneurship success using longitudinal data from Project GATE, an experimental-design entrepreneurship training program. These data are unique because they provide rich information on the characteristics of nascent entrepreneurs who applied for program participation, as well as on their entrepreneurship outcomes over a 60-month follow-up period. Analyses show that white nascent entrepreneurs were more successful than nonwhites in starting a business, becoming self-employed, and achieving high self-employment earnings over the entire 60-month follow-up period. These disparities are largely because whites started their pursuit of entrepreneurship with higher human capital and entrepreneurship skills, and better access to start-up financing. In fact, access to financing is the most important determinant of short-term and long-term success, while human capital and entrepreneurship skills are less important than previous work has suggested, particularly in explaining long-term differences. Finally, government-sponsored entrepreneurship training is found effective in helping nascent entrepreneurs to improve their entrepreneurship skills and become self-employed earlier than they would in the absence of training. There is no evidence, however, that training has higher effects for individuals with unfavorable initial conditions, and thus it is unlikely that government-sponsored training programs can reduce racial gaps in entrepreneurship success.
    Keywords: entrepreneurship; self-employment; race; small business; Project GATE; entrepreneurship training; workforce development
    JEL: J6 H4 L2
    Date: 2017–02
  5. By: Milos Markovic (Centre d'Economie de la Sorbonne); Michael A. Stemmer (Centre d'Economie de la Sorbonne)
    Abstract: Using a unique dataset of unlisted Serbian firms during the period between 2005 and 2012, we analyze the impact of internal financial constraints on firm growth with respect to several firm-level characteristics. We also assess potential effects created by the 2008-2009 Global Financial Crisis. To do so, we rely on panel data models, which estimate via GMM cash flow sensitivities of firm growth, following the dynamic specification of Guariglia et al. (2011). Controlling for investment opportunities, our results show that Serbian firms face high financial constraints and exhibit generally a high reliance on retained earnings for firm growth. We do not find evidence for a crisis effect, potentially due to ex ante accumulated internal funds. Conventional firm characteristics such as age, size or overall performance largely determine the dependency on cash for firm growth. Moreover, foreign-owned companies seem to escape the financing gap by tapping other resources. A comparison with Belgian firms contrasts our results with an advanced country setting
    Keywords: Financial constraints; firm growth; transition countries; dynamic panel data; GMM
    JEL: C23 D92 E44 G32 L25 O16
    Date: 2017–02
  6. By: Armand, Alex; Mendi, Pedro
    Abstract: Fluctuations in aggregate demand can influence the decision to invest in innovation. This paper focuses on this choice when fluctuations are heterogeneous across productive strata of the economy. To guide the empirical analysis, we model firms’ decision to invest in innovation. In our framework, firms are heterogeneous and demand shocks are exogenous. We show that drops in aggregate expenditure reduce the proportion of firms investing in innovation. We then study investment behaviour in a panel of Spanish innovative manufacturing firms. These firms are all investing in internal R&D in 2004 and are yearly surveyed until 2013. During the Great Recession, firms experienced large contractions in aggregate consumption. The reduction reached 10% of its pre-crisis trend. We proxy heterogeneous fluctuations in demand with entry and exit rates in the productive stratum of each firm. Rates incorporate all firms, including non-innovative firms. Higher exit rates are associated with reductions of 2 to 3% in the share of firms investing in innovation. The drop is larger for smaller firms, which also experience larger decreases in sales. These results are in line with our theoretical predictions. Our estimates are robust to the inclusion of indicators of time-varying credit constraints. For these constraints, we observe a marginal role among innovative firms.
    Keywords: R&D, Innovation, Firm entry, Firm exit, Great Recession.
    JEL: L22 O31 O32
    Date: 2017–02–16
  7. By: Bernhard Dachs (AIT Austrian Institute of Technology GmbH); Martin Hud (Centre for European Economic Research (ZEW)); Christian Koehler (Centre for European Economic Research (ZEW)); Bettina Peters (Centre for European Economic Research (ZEW) - Industrial Economics and International Management Research)
    Abstract: A growing literature investigates how firms’ innovation input reacts to changes in the business cycle. However, so far there is no evidence whether there is cyclicality in the effects of innovation on firm performance as well. In this paper, we investigate the employment effects of innovations over the business cycle. Our analysis employs a large data set of manufacturing firms from 26 European countries over the period from 1998 to 2010. Using the structural model of Harrison et al. (2014), our empirical analysis reveals four important findings: First, the net effect of product innovation on employment growth is pro-cyclical. It turns out to be positive in all business cycle phases except for the recession. Second, product innovators are more resilient to recessions than non-product innovators. Even during recessions they are able to substitute demand losses from old products by demand gains of new products to a substantial degree. As a result their net employment losses are significantly lower in recessions than those of non-product innovators. Third, we only find resilience for SMEs but not for large firms. Fourth, process and organizational innovations displace labor primarily during upturn and downturn periods.
    Keywords: Innovation, employment, business cycle, resilience, Europe
    JEL: O33 J23 C26 D2
    Date: 2017–02
  8. By: Broekel, Tom; Boschma, Ron
    Abstract: Firms’ embeddedness in knowledge networks has received much attention in literature. However, little is known about the structure of firms’ knowledge exchange with respect to different types of proximities. Based on survey data of 295 firms in 8 European regions, we show that firms’ knowledge exchange systematically differs in their geographical and cognitive dimensions. We find that firms’ innovation performance is enhanced if the firm primarily links to technologically related as well as technologically similar organizations. Connecting with organizations at different geographical levels yields positive effects as well.
    Keywords: geographical proximity knowledge networks technological relatedness innovation performance
    JEL: D85 O18 O33
    Date: 2017–02
  9. By: Stefano Bianchini (BETA, University of Strasbourg); Gabriele Pellegrino (École Polytechnique Fédérale de Lausanne & IEB)
    Abstract: This paper examines the effect of persistence in product and process innovations on the employment dynamics of a representative sample of Spanish manufacturing firms observed over more than 20 years. We build on a conceptual framework that links innovation persistence, employment growth and the persistence of this growth in the long-run. Using dynamic panel GMM and survival analysis techniques, we find that persistence in product innovation affects both employment growth and the sustainability of job creation over time significantly, whilst persistence in process innovation does not play any relevant role. The evidence we provide supports the notion that product innovation is more effective in spurring sustained employment growth when carried out systematically.
    Keywords: Firm growth, job creation, innovation, persistence in innovation, path-dependence
    JEL: D22 O31 O32 O33
    Date: 2017
  10. By: Mia Ellis; Margaret McMillan; Jed Silver
    Abstract: Despite Tanzania’s rapid recent growth, the vast majority of employment creation has been in informal services. This paper addresses the role that different subsectors of formal and informal services have played in Tanzania’s growth. It finds that subsectors such as trade services contribute significantly to employment despite their relatively low productivity, while subsectors such as business and transportation services display higher productivity and improve the environment for other firms to operate.The paper also acknowledges the role of high-performing small and medium-sized service firms and the tourism sector in contributing further to Tanzania’s growth and structural change.
    Keywords: services, informal sector, economic growth, structural change, Tanzania, tourism
    Date: 2017
  11. By: Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: This paper reviews the empirical evidence of persistent levels of regional self-employment and new business formation and the effect this persistence has on development. It is argued that a regional culture of entrepreneurship plays an important role in explaining persistence of entrepreneurship. We discuss possible explanations for the emergence of a culture of entrepreneurship, and how it becomes self-perpetuating over time. Finally, we draw policy implications and identify some promising avenues for further research.
    Keywords: Entrepreneurship, economic development, entrepreneurship culture, institutions
    JEL: L26 R11 O11
    Date: 2017–02–23
  12. By: Ashish Arora; Sharon Belenzon; Lia Sheer
    Abstract: If scientific knowledge is a public good, why do firms invest in research? This paper revisits this question with new data on patent citations to corporate scientific publications. Using data on 4,736 firms for the period 1980-2006, we explore the relationship between the use of corporate research in invention and the output of corporate scientific publications. Our principal contribution is to document that corporate investment in research is closely related to its use in invention. Specifically, firms that build on their scientific publications in their inventive activity invest more in research than those that are less successful in using their research internally. Consistent with this, research that is internally used is valued more and is more productive.
    JEL: O31 O32
    Date: 2017–02
  13. By: Billette de Villemeur, Etienne; Versaevel, Bruno
    Abstract: We draw from documented characteristics of the biopharmaceutical industry to construct a model where two firms can choose to outsource R&D to an external unit, and/or engage in internal R&D, before competing in a final market. We investigate the tension between outsourced and internal operations, the distribution of profits among market participants, and the incentives to coordinate outsourcing activities, or to integrate R&D and production. Consistent with the empirical evidence, we find that: (1) each firm’s internal R&D activity is monotonic in the technology received from the external unit, and the sign of the relationship does not depend on the technology received or generated by the competitor; (2) a measure of direct and indirect technological externalities drives the distribution of industry profits, with lower returns to an external unit involved in research (drug discovery) than in development (clinical trials); (3) upstream entry is stimulated by the long-term perspective for the external unit’s owners to earn a larger share of industry profits by selling out assets to a client firm than by running operations. However, in the case of early-stage research, the delinkage of investment incentives from industry value, and the vulnerability of investors’ returns to negative shocks, both suggest the abandonment of projects with economic and medical value as a likely consequence of R&D outsourcing.
    Keywords: research; development; biotechnology; pharmaceuticals; externalities
    JEL: C72 L13 O31
    Date: 2017–01
  14. By: Maria Teresa Costa-Campi (Universitat de Barcelona & IEB); Néstor Duch-Brown (Institute for Prospective Technological Studies); José García-Quevedo (Universitat de Barcelona & IEB)
    Abstract: Investment by energy firms in innovation can have substantial economic and environmental impacts and benefits. Internal R&D is the main input and driver of the innovation process, but innovation involves other activities, including capital purchases and other current expenditures. While the R&D activities of energy firms have been analysed, few studies have examined the typology of their innovation activities. Here, we analyse the impact of the main characteristics of the sector’s firms on their decisions to invest in each of three types of innovation activity: namely internal R&D; external R&D; and, the acquisition of advanced machinery, equipment or software. In conducting this analysis, we take the potential persistence of innovation activities into account. We also examine the role that different innovation objectives have on firms’ investment decisions. Given that engagement in a specific type of innovation may result from decisions that are not taken independently of each other, we analyse whether there is any complementarity between the three innovation activities. In carrying out the empirical analysis, we draw on data for private energy firms included in the Technological Innovation Panel (PITEC) for Spanish firms for the period 2004-2013. We use panel triprobit models to examine potential complementarity.
    Keywords: Energy, R&D, innovation, regulation, complementarity
    JEL: L94 Q40 O32
    Date: 2016
  15. By: Molina, Jose Alberto; Ortega, Raquel; Velilla, Jorge
    Abstract: In this paper, we empirically analyze the individual characteristics that drive older workers to become entrepreneurs, more by necessity than desire, providing evidence of the differences between developed and developing countries. While OLS models do not provide any meaningful conclusions, Qualitative Comparative Analysis and fuzzy set logic, at the country level, using GEM 2014 Global Individual micro-data, show the importance of the various combinations of high and/or low values of skills, opportunities, entrepreneurial perceptions, peer effects, and satisfaction with life and income. This indicates how entrepreneurship may be a potential source of income for older workers, in a range of contexts. Further, we find that all the possible combinations of higher values of the latter features are necessity conditions.
    Keywords: Entrepreneurship, Older individuals, Fuzzy Set Qualitative Comparative Analysis, GEM data.
    JEL: L26 O10 O57
    Date: 2017–02–20
  16. By: Eleanor W. Dillon; Christopher T. Stanton
    Abstract: Small business owners and others in self-employment have the option to transition to paid work. If there is initial uncertainty about entrepreneurial earnings, this option increases the expected lifetime value of self-employment relative to pay in a single year. This paper first documents that moves between paid work and self-employment are common and consistent with experimentation to learn about earnings. This pattern motivates estimating the expected returns to entrepreneurship within a dynamic lifecycle model that allows for non-random selection and gradual learning about the entrepreneurial earnings process. The model accurately fits entry patterns into self-employment by age. The option value of returning to paid work is found to constitute a substantial portion of the monetary value of entrepreneurship. The model is then used to evaluate policies that change incentives for entry into self-employment.
    JEL: J24 J31 J62 L26 M50
    Date: 2017–02
  17. By: Shai Bernstein; Emanuele Colonnelli; Xavier Giroud; Benjamin Iverson
    Abstract: How do different bankruptcy approaches affect the local economy? Using U.S. Census microdata at the establishment level, we explore the spillover effects of reorganization and liquidation on geographically proximate firms. We exploit the random assignment of bankruptcy judges as a source of exogenous variation in the probability of liquidation. We find that within a five-year period, employment declines substantially in the immediate neighborhood of the liquidated establishments, relative to reorganized establishments. Most of the decline is due to lower growth of existing establishments and, to a lesser extent, reduced entry into the area. The spillover effects are highly localized and concentrate in the non-tradable and service sectors, particularly when the bankrupt firm operates in the same sector. These results suggest that liquidation leads to a reduction in consumer traffic to the local area and to a decline in knowledge spillovers between firms. The evidence is inconsistent with the notion that liquidation leads to creative destruction, as the removal of bankrupt businesses does not lead to increased entry nor the revitalization of the area.
    JEL: G33 R12
    Date: 2017–02
  18. By: Molina, Jose Alberto; Ortega, Raquel; Velilla, Jorge
    Abstract: We analyze whether male or female individuals have a higher probability of becoming entrepreneurs in developing regions (Africa, Asia, South America), controlling by individuals’ entrepreneurial environment and countries’ macroeconomic context. Using the GEM data, we avoid heterogeneity and the potential confounding problems arising from the definition of entrepreneurship. We find that women tend to become entrepreneurs more often than men in South America and Africa, highlighting the importance of entrepreneurship as a survival labor choice. No gender gaps in entrepreneurial participation are found in Asia.
    Keywords: Entrepreneurship; Gender; Feminist; Developing countries
    JEL: J16 L26 O10 O57
    Date: 2017–02–20
  19. By: Jairo Orozco Triana; Carlos Gabriel Vargas Arrieta; José David Florez Reyes
    Abstract: El sector de la transformación y de los servicios a la industria son los que aportan más en términos de valor agregado a la ciudad de Cartagena de Indias (Colombia). En el presente estudio se analizan estos sectores desde una perspectiva de emprendimiento, utilizando el Modelo del Global Entrepreneurship Monitor (GEM). Los resultados son coherentes con los reportes de crecimiento del industria en la ciudad, ya que los emprendedores que están involucrados en estos sectores tienen una estructura enfocada más a la perdurabilidad, la motivación por oportunidad y la innovación. Comparativamente, los resultados muestran una mayor fortaleza de estos sectores en comparación con el sector de consumo. ****** The transformation and services sectors, in the industry, are those providing more in terms of added value to Cartagena. This research addresses an analysis of these sectors from a perspective on entrepreneurship using the Global Entrepreneurship Monitor model (GEM). Our results are consistent with the reports about the industry growth in Cartagena due to the fact that entrepreneurs, involved in these sectors, have a structure more focused on sustainability, motivation by opportunity and innovation. The results also show, comparatively, an increased strength between these sectors compared to the consumer one.
    Keywords: Emprendimiento, Cartagena, Sectores de transformación yservicios, Global Entrepreneurship Monitor, Entrepreneurship, Cartagena, Global Entrepreneurship Monitor, transformationand services sectors.
    JEL: C10 L26 L29 L50
    Date: 2015–09–01
  20. By: Giovanni Dosi; Emanuele Pugliese; Pietro Santoleri
    Abstract: We examine market selection mechanisms and their strength for a representative cohort of US new independent firms. In particular, we explore whether and how effectively markets reward newly-born firms according to their `fitness' in terms of both labour productivity and profitability. Our analysis yields puzzling results in contrast with canonical industry dynamics models. First, we find that selection on differential growth is mainly related to productivity while profitability plays a negligible role. Second, in contrast with the growth of the fitter principle, selection appears to be driven by changes in firms' relative productivity. Third, we explore how new firms' relative fitness affects their growth performance in different sectors. Our results reveal that market selection operates quite differently across them with higher incidence for new-born firms in services, low-tech and less concentrated sectors. Fourth, concerning selection via exit, our results support the survival of the fitter principle with respect to productivity, while relative profitability does not seem to exert any significant effect on survival probabilities. However, the contribution of firm relative `fitness' to the total firm exit rates variation appears to be modest.
    Keywords: market selection, replicator dynamics, new firm growth, survival, Shapley decomposition
    Date: 2017–02–21
  21. By: M. Dietsch; K. Düllmann; H. Fraisse; P. Koziol; C. Ott
    Abstract: Using a unique and comprehensive data set on the two largest economies of the Eurozone – France and Germany – this paper first proceeds to a computation of the Gordy formula relaxing the ad hoc size-dependent constraints of the Basel formulas. Our study contributes to Article 501 of the Capital Requirements Regulation (CRR) requesting analysis the consistency of own funds requirements with the riskiness of SMEs. In both the French and the German sample, results suggest that the relative differences between the capital requirements for large corporates and those for SMEs (in other words the capital relief for SMEs) are lower in the Basel III framework than implied by empirically estimated asset correlations. Results show that the SME Supporting Factor in the CRR/CRDIV is able to compensate the difference between estimated and CRR/CRDIV capital requirements for loans in the corporate portfolio.
    Keywords: SME Supporting Factor, Asset correlation, Basel III, Minimum Capital requirements, Asymptotic Single Risk factor Model, SME finance.
    JEL: G21 G33 C13
    Date: 2016
  22. By: Horbach, Jens; Janser, Markus
    Abstract: The environmental sector is supposed to yield a dual benefit: its goods and services are in-tended to tackle environmental challenges and its establishments should create new jobs. However, it is still unclear in empirical terms whether that really is the case. This paper investigates to what extent employment growth in establishments with green products and services is higher compared to other establishments. Furthermore, the main factors determining labor demand in this field are analyzed. We use linked employment and regional data for Germany. The descriptive results show that the environmental sector is characterized by disproportionately high employment growth. The application of a generalized linear mixed model reveals that especially innovation and industry agglomeration foster employment growth in establishments in the environmental sector. Establishments without green products and services show a smaller increase in employment, even if they are also innovative.
    JEL: J21 Q55 R23
    Date: 2016

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