nep-sbm New Economics Papers
on Small Business Management
Issue of 2017‒05‒21
24 papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. What cluster model for the competitiveness of Tunisian companies? By Bouhari, Mohamed; Khabbouchi, Rafika; Mathlouthi, Yamina
  2. Romania: Many Entrepreneurs but Few Innovators By Badulescu, Daniel; Cadar, Otilia
  3. Size-dependent Policy and Firm Growth By HOSONO Kaoru; TAKIZAWA Miho; TSURU Kotaro
  4. Schumpeterian Entrepreneurship in Europe Compared to Other Industrialized Regions By Henrekson, Magnus; Sanandaji, Tino
  5. Stock Option Taxation: A Missing Piece in European Innovation Policy? By Henrekson, Magnus; Sanandaji, Tino
  6. 7 ways to boost digital innovation and entrepreneurship in Europe. Key messages from the European innovation policies for the digital shift project By Daniel Nepelski; Marc Bogdanowicz; Federico Biagi; Paul Desruelle; Giuditta De Prato; Garry Gabison; Giuseppe Piroli; Annarosa Pesole; Nikolaus Thumm; Vincent Van Roy
  7. Public guarantees on loans to SMEs: an RDD evaluation By Guido de Blasio; Stefania De Mitri; Alessio D'Ignazio; Paolo Finaldi Russo; Lavina Stoppani
  8. Bank-Firm Relationship and Small Business Innovation By XU Peng
  9. Innovation in risky markets. Multinational and domestic firms in the UK regions By Annalisa Caloffi; Federica Rossi; Margherita Russo
  10. Entrepreneurship, Institutions and Skills in Low-Income Countries By Brixiova, Zuzana; Égert, Balázs
  11. Firm growth in Europe: An overview based on the COMPNET labour module By Cristina Fernández; Roberta García; Paloma Lopez-Garcia; Benedicta Marzinotto; Roberta Serafini; Juuso Vanhala; Ladislav Wintr
  12. Firm Strategies and Business Models in the Software Industry: A Configurational Approach By Pussep, Anton
  13. The Multiprod project: A comprehensive overview By Giuseppe Berlingieri; Patrick Blanchenay; Sara Calligaris; Chiara Criscuolo
  14. High growth firms in employment and productivity: dynamic interactions and the role of financial constraints? By Cristina Guillamón; Enrique Moral-Benito; Sergio Puente
  15. Collaborative networks and export intensity in family firms: a quantile regression approach By Raúl Serrano; Isabel Acero-Fraile; Natalia Dejo-Oricain
  16. The Measurement of Synergy in Innovation Systems: Redundancy Generation in a Triple Helix of University-Industry-Government Relations By Loet Leydesdorff; Henry Etzkowitz; Inga Ivanova; Martin Meyer
  17. Air Quality and Manufacturing Firm Productivity: Comprehensive Evidence from China By Fu, Shihe; Viard, Brian; Zhang, Peng
  18. Local Crowding Out in China By Yi Huang; Marco Pagano; Ugo Panizza
  19. An Estimated Structural Model of Entrepreneurial Behavior By Jones, John Bailey; Pratap, Sangeeta
  20. Spotlight on the beneficiaries of EU regional funds: A new firm-level dataset By Bachtrögler, Julia; Hammer, Christoph; Reuter, Wolf Heinrich; Schwendinger, Florian
  21. The Role of Universities in Economic Development of Russian Regions By Alexey A. Egorov; Oleg V. Leshukov; Alexander D. Gromov
  22. Les modalités d’introduction en bourse des PME-ETI innovantes : le cas des jeunes pépites bio/medtech françaises, The Characteristics of initial public offering for innovative small and medium-sized firms: the case of young french bio/medtech firms By Evelyne POINCELOT
  23. License or entry decision for innovator in international duopoly with convex cost functions By Hattori, Masahiko; Tanaka, Yasuhito
  24. Does Inter-firm Collaboration Network Improve Quality of Innovation? International comparative analysis from worldwide patent data (Japanese) By IINO Takashi; INOUE Hiroyasu; SAITO Yukiko; TODO Yasuyuki

  1. By: Bouhari, Mohamed; Khabbouchi, Rafika; Mathlouthi, Yamina
    Abstract: This paper gives purpose to identify the factors of the constitution of "the Tunisian cluster" in an environment open to competition. It is a contribution to the debate on the importance of clusters for competitiveness of small and medium enterprises (SMEs) to make more innovative and competitive regions and to promote strategically important sectors in technology. Approaches based on the knowledge economy grew by better integrating forms of proximity, organizational, institutional and geographical, (Torre and Rallet 2005) and relational (Boshma, 2005). An empirical study was conducted on a sample of Information and Communication Technologies ICTs’companies. The results show that the lack of attractiveness of ICT Tunisian companies to form clusters is not due to a lack of suitable infrastructure but to the absence of relations involved in a partnership approach or localized nature between higher education, research centers, industry training and organization, enabling to carry out scientific and technical projects.
    Keywords: Clusters, technology centers, geographical proximity, organized proximity
    JEL: R11 R12 R13
    Date: 2016–03
  2. By: Badulescu, Daniel; Cadar, Otilia
    Abstract: Entrepreneurship is considered an essential element for the development and prosperity of contemporary economies. The already known traits: creating jobs, boosting growth, revenues to the state budget, are supplemented by vitality and adaptability, and not least, a capacity for innovation. Thus, innovation became one of the most important factors in the companies’ activity. However, innovation doesn’t only mean new products and services. It is closely related to the capacity of entrepreneurs and managers to apply new business models, embedding an organizational culture capable to identify how new ideas could be converted into value for business and society. Innovation supports the efforts of ambitious entrepreneurs to pursue their objectives and stimulate other potential entrepreneurs to enter into businesses. Innovation generates, directly and indirectly, positive effects not only within a company but also within the national economy, as a whole. Despite this empirical evidence, the link between entrepreneurship and innovation is difficult to describe, to introduce it in strong theoretical models, in order to substantiate viable political programs. First, only a relatively small part of entrepreneurs really innovate. Secondly, researchers reveal deep, but subtle, ties between the entrepreneurs’ profile, availability for innovation and effects on states’ competitiveness and prosperity. Finally, the number (or proportion) of entrepreneurs isn’t the most relevant, but their availability to innovate, the type of innovation chosen and, especially, how entrepreneurial organizations stimulate innovative initiatives among their employees (intrapreneurship). From this point of view, Romania's situation is difficult and challenging. The importance and size of the sector, entrepreneurial motivations, or the share of early stage innovative entrepreneurs indicate an average position at a global or European Union (EU) level. However, Romania is a modest innovator, often ranked last in the EU for a several innovation indicators, and its innovation performance in 2014 is at a significantly lower level compared to 2007. The poorest relative performance has been registered for the Linkages & entrepreneurship indicator. Our research also performs a comparison between entrepreneurship and innovation indicators, for Romania and selected Central and Eastern European states, to better understand the gap regarding a reasonable performance in innovation.
    Keywords: innovation, entrepreneurship, competitiveness, EU, Romania
    JEL: L26 M21 O31
    Date: 2016–05–26
  3. By: HOSONO Kaoru; TAKIZAWA Miho; TSURU Kotaro
    Abstract: Governments in most countries regulate, tax, and subsidize firms depending on whether firm size is larger or smaller than some preset thresholds. Firms that remain below the thresholds can receive benefits from the government, but may incur costs or distortions that could arise from being below the optimal size without such policies. Such benefits and costs are likely to depend on firm and industry characteristics. Using the policy reform in Japan that raised the thresholds as a natural experiment, we examine (1) whether and to what extent the distribution of firm size is distorted due to the presence of the thresholds, (2) the characteristics of firms that grow beyond the thresholds, and (3) how firms that grow beyond the thresholds perform as compared to those that remain below the thresholds. We have obtained evidence for some, although not all, industries as follows. First, bunching and its shift can be found at the thresholds in the size distribution in terms of stated capital. Second, capital structure is distorted under the threshold of stated capital. Third, firms with lower productivity are more likely to be small and medium enterprises (SMEs) after the policy reform. Finally, while the ex-post research and development (R&D) intensity of firms that grew to large firms decreases as compared to those that remain as SMEs, the ex-post profitability and productivity of firms that grew to large firms increase. Overall, our results suggest that size-dependent policies in Japan cause distortions on firms' financial policy, R&D, and operating performance. However, the degree of such distortions greatly differs across industriess.
    Date: 2017–05
  4. By: Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Sanandaji, Tino (Institute for Economic and Business History Research (EHFF), Stockholm School of Economics)
    Abstract: We examine whether Europe has an “entrepreneurship deficit” compared to other industrialized regions. Cross-country comparisons are difficult due to the lack of standard empirical definitions of entrepreneurship. Measures focusing on small business activity and startup rates suggest that Europe has the same or higher rates of entrepreneurship than the U.S. and East Asia. However, most business activity is not entrepreneurial in the Schumpeterian sense. We rely on empirical measures that more closely tally Schumpeterian entrepreneurship. These include top global firms founded in recent decades, highly valued unicorn startups, venture capital investments as a share of GDP, and the number of self-made dollar billionaires per capita who earned their wealth by creating new firms. Western Europe is shown to underperform in all four measures of high-impact Schumpeterian entrepreneurship relative to the U.S. Once we account for Europe’s strong performance in technological innovation, an “entrepreneurship deficit” relative to China and East Asia becomes apparent. This underperformance is missed by most standard measures, but captured by the GEM measure China is found to perform surprisingly well in Schumpeterian entrepreneurship, especially compared to Eastern Europe.
    Keywords: Billionaire entrepreneurs; Entrepreneurship; Innovation; Institutions; Regulation; Self-employment
    JEL: L50 M13 O31 P14
    Date: 2017–05–16
  5. By: Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Sanandaji, Tino (Institute for Economic and Business History Research (EHFF), Stockholm School of Economics)
    Abstract: Venture capital has become a dominant form of innovation finance, used by many high-tech startups. Europe lags the U.S. in both VC activity and the creation of successful startups, and has recently been surpassed by China. Few European countries have rates of VC activity commensurable to their deep finan­cial markets, strong legal institutions and high R&D spending. This paper points to the tax treatment of employee stock options as an important and neglected explanation. Innovative entrepreneurship is a complex activity that normally requires support structures and collaboration by actors providing financial and human capital to startups. As a response to high uncertainty and transaction costs, VC financiers developed a model where founders and key recruitments are compensated with stock options under complex contracts. While most countries tax stock options as labor earnings, the U.S. allow them to be taxed at a low capital gains tax rate. This has led to near universal use of stock options in U.S. VC deals, while this remains less common in Europe. There is a strong correlation between favorable tax treatment of employee stock options and VC activity. We discuss the interaction between tax policy and contract theory to show why employee stock options are a suitable solution to agency and incentive problems in this sector. A major advantage of this tax policy is that it narrowly targets entrepreneurial startups without requiring broad tax cuts.
    Keywords: Business taxation; Corporate governance; Entrepreneurship; Innovation; Institutions; Tax policy; Stock options; Venture capital
    JEL: H25 H30 K34 L26
    Date: 2017–05–12
  6. By: Daniel Nepelski (European Commission - JRC); Marc Bogdanowicz; Federico Biagi (European Commission - JRC); Paul Desruelle (European Commission - JRC); Giuditta De Prato (European Commission - JRC); Garry Gabison (European Commission - JRC); Giuseppe Piroli; Annarosa Pesole (European Commission - JRC); Nikolaus Thumm (European Commission - JRC); Vincent Van Roy (European Commission - JRC)
    Abstract: This report attempts to summarise findings and conclusions of over 30 studies published within the EURIPIDIS project (European Innovation Policies for the Digital Shift). The objective of EURIPIDIS was to better understand how digital innovation and entrepreneurship work; to assess the EU's digital innovation and entrepreneurship performance; and to suggest how policy makers could make digital innovation and entrepreneurship in the EU work better. Because digital technologies facilitate the modernization of firms and economies, digital innovation and entrepreneurship requires a comprehensive policy response. The current report focuses on 7 issues. (1) Digital innovation and entrepreneurship require skills and capabilities ranging from technical, managerial and financial; entrepreneurial culture; failure acceptance; large funding and innovation-friendly regulatory environment. Capacity building and specific policies are needed in all those fields. (2) Resisting digital disruption and protecting the status quo is likely to be a short-term strategy. Negative social and economic effects need to be mitigated. (3) The ecosystem of digital innovation and entrepreneurship consists of a wide range of different players. Policy responses need to address this heterogeneity. (4) Digital innovation and entrepreneurship takes place through collaborative interactions between various players. To facilitate collaboration, knowledge flow and spillovers need to become a more central focus of public policies. (5) In addition to increasing funding for innovation, closer attention needs to be paid to the availability of funding for scaling-up of digital enterprises. (6) To guarantee technological interoperability and create technology-related network effects, coordination between various players to, for example, set technological standards is needed. (7) Technological complexity combined with the cumulativeness of digital innovation requires a balance between two conflicting goals: the provision of incentives to create new products and the stimulation of knowledge dissemination.
    Keywords: ICT, digital economy, big data, innovation
    Date: 2017–04
  7. By: Guido de Blasio (Bank of Italy); Stefania De Mitri (Bank of Italy); Alessio D'Ignazio (Bank of Italy); Paolo Finaldi Russo (Bank of Italy); Lavina Stoppani (Catholic University of Milan)
    Abstract: The paper evaluates the impact of the guarantees provided by the Italian scheme Fondo di Garanzia on the access to credit for small and medium enterprises. The study exploits the mechanism that assigns the guarantees, which is based on a scoring system to assess eligibility. By using regression discontinuity techniques, the paper finds that at the threshold between eligible and non-eligible firms, the program has a positive impact on bank loans to firms; however, the scheme has no impact on the interest rate charged by the banks, while it affects positively the likelihood that a firm becomes unable to repay its loans. The guaranteed loans were mostly used to finance working capital. Finally, the paper provides inference for far-from-the-threshold firms.
    Keywords: credit guarantees, public guarantees, access to credit, SMEs financing
    JEL: L25 O12 G28
    Date: 2017–04
  8. By: XU Peng
    Abstract: This paper empirically investigates the effect of banks' soft information on small business innovations. Using data from a sample of Japanese small and medium enterprises (SMEs), we find that multiple banking prevails. Moreover, besides the main bank, the sub bank also acquires soft information for a number of multiple banking firms. Nonetheless, there coexists no bank information: the main bank's information monopoly and multiple bank information competition. Importantly, such information competition in multiple banking is positively related to both product and process innovation while the main bank's information monopoly has no significant effects on innovation. Also, we offer additional consistent evidence that information competition decreases the likelihood of worsening of the lending attitude of the main bank during the financial crisis. For single banking firms, bank information monopolies have a negative effect on product and process innovation.
    Date: 2017–04
  9. By: Annalisa Caloffi (Department of Economics and Management, University of Padua, Italy); Federica Rossi (Department of Management, Birkbeck College, University of London); Margherita Russo (Department of Economics Marco Biagi, University of Modena and Reggio Emilia, Italy)
    Date: 2017–05
  10. By: Brixiova, Zuzana (University of Cape Town); Égert, Balázs (OECD)
    Abstract: This paper develops a model of costly firm creation in an economy with weak institutions, costly business environment as well as skill gaps where one of the equilibrium outcomes is a low-productivity trap. The paper tests the implications of the model using a cross-sectional dataset including about 100 countries. Both theoretical and empirical results suggest that to move the economy into a productive equilibrium, complementarity matters: reforms to improve the business environment tend to be more effective in creating productive firms when accompanied by narrowing skill gaps. Similarly, more conducive business regulations amplify the positive impact on firm creation of better education and reduced skill mismatches. To escape a low-productivity trap, policymakers should thus create a pro-business framework and a well-functioning education system.
    Keywords: model of start-ups and strategic complements, institutions, education, low-income countries, threshold regression
    JEL: L26 J24 J48 O17
    Date: 2017–04
  11. By: Cristina Fernández; Roberta García; Paloma Lopez-Garcia; Benedicta Marzinotto; Roberta Serafini; Juuso Vanhala; Ladislav Wintr
    Abstract: This paper illustrates the main features of the Labour Module of the CompNet dataset which provides indicators of firm growth over the period 1995-2012 across 17 EU (13 euro area) countries and 9 macro-sectors. It also includes information on a large set of micro-aggregated characteristics of firms growing at different speed such as their financial position and labour and total factor productivity. The paper shows that during the Great Recession the share of shrinking firms sharply increased in countries under stress, while firm growth slowed down in non-stressed countries. In the former, the construction sector suffered the most, while in the latter manufacturing and services related to transportation and storage were mainly affected, possibly as a result of the trade collapse. While we find that, all else equal, more productive firms had a higher probability of growing, the process of productivity-enhancing reallocation was muted during the Great Recession.
    Keywords: Firm-level data, Firm growth, Job creation.
    JEL: J23 L11 L25
    Date: 2017–05
  12. By: Pussep, Anton
    Abstract: Researchers have long focused on the determinants of firm success, which is of crucial interest to practitioners as well, since being successful is at the very heart of economic activity. Extant research emphasizes three levels of analysis at which determinants occur: firm, industry, and group level. Each level has been found to affect firm success. At group level, firms choose between a limited set of competitive approaches. The resulting groups are referred to as configurations. The analysis of configurations, their characteristics, and effects are the particular focus of configurational research and this thesis. Along with a multitude of other concepts, scholars have used industry-specific conceptualizations of firm strategy to derive configurations, referred to as strategic groups. Despite theoretical and methodological weaknesses in its beginnings, strategic group research has overcome initial challenges and produced a strong body of theoretical argument, methodology, and empirical evidence in the tradition of configurational research. More recently, business models have emerged as a topic of growing interest to researchers and practitioners. Though some methods from configurational research have been applied to business models, previous studies do not nearly grasp the full potential of configurational analysis. In addition to methodological shortcomings, business model research is still under criticism for theoretical and conceptual weaknesses. This thesis uses the theoretical and methodological body of knowledge from strategic group research and applies it to strategies and business models of software firms. The particular case of the software industry is chosen because of its dynamics, size, growth, and importance to other industries. In order to improve our understanding of strategies and business models in the software industry, a software-specific value chain is derived and used as the main theoretical foundation to both concepts. Building upon detailed conceptualizations, three empirical studies are presented, each using a unique dataset to analyze the concepts at hand. The empirical studies demonstrate the applicability of configurational analysis to software firms and provide insights into their characteristics and success factors. The results indicate that the most distinctive delineators of strategies and business models determine a firm’s product and market scope, such as firm size, share of international revenues, and the number of targeted industries. Strong empirical evidence suggests that broader scope is associated with higher success in terms of higher performance, higher risk-adjusted performance, and in some cases lower risk. Being consistent with the economic properties of software products and markets, such as network effects, the findings bear rich implications for researchers and practitioners, including decision makers, investors, analysts, and policy makers.
    Date: 2017
  13. By: Giuseppe Berlingieri; Patrick Blanchenay; Sara Calligaris; Chiara Criscuolo
    Abstract: This paper is a technical document, designed to serve as a reference document for subsequent papers arising out of MultiProd, a project of the Committee on Industry, Innovation and Entrepreneurship and the Working Party on Industry Analysis, aimed at studying productivity patterns across countries and over time. MultiProd provides harmonised micro-aggregated data of paramount importance for investigating the extent to which different policy frameworks can shape firm productivity and examining the way resources are allocated to more productive firms. The paper discusses the project’s main contributions in relation to the current literature, in particular how using micro-aggregated data can help policy-makers understand and measure the efficiency of resource allocation in the economy, the dependence of economic activity on a small number of large firms, and wage inequality.
    Date: 2017–05–16
  14. By: Cristina Guillamón (Banco de España); Enrique Moral-Benito (Banco de España); Sergio Puente (Banco de España)
    Abstract: Using a panel of Spanish firms over the period 2002-2012, we investigate the interactions between high growth episodes in terms of size and productivity. We find that high growth in productivity (size) increases the likelihood of high growth in size (productivity). However, the effect from size to productivity is smaller than the effect from productivity to size. We also explore the potential role of firm-level financial constraints using information from the Central Credit Register (CIR) of Banco de España. Our results indicate that credit constraints hamper high growth episodes in terms of both size and productivity.
    Keywords: keyword, high-growth firms, high-impact firms, productivity, panel firm-level data
    JEL: L25 L11 D24 C23
    Date: 2017–05
  15. By: Raúl Serrano (University of Zaragoza); Isabel Acero-Fraile (University of Zaragoza); Natalia Dejo-Oricain (University of Zaragoza)
    Abstract: This paper examines if collaborative networks affect the export status and intensity in family firms. We suggest that the network effect is more relevant when the firm has low export intensity because when the firm is in the first stages of internationalization, networks are very useful to provide export resources and to solve common problems. However, this role becomes less relevant when firms show higher export intensity. For the empirical analysis, we use a dynamic Heckman-Probit model, using in the second stage a quantile regression model.
    Keywords: Family Firms; Networks; Internationalization; Export Intensity; Quantile regression
    JEL: F15 M21 N74 Q13
    Date: 2017–04
  16. By: Loet Leydesdorff (University of Amsterdam); Henry Etzkowitz (International Triple Helix Institute (ITHI),); Inga Ivanova (Institute for Statistical Studies and Economics of Knowledge, National Research University Higher School of Economics (NRU HSE),); Martin Meyer (Kent Business School,)
    Abstract: In university-industry-government relations, one not only exchanges information, but can also share meanings provided from partially overlapping perspectives. Such sharing of meanings invokes different codes of communication and generates redundancies. Redundancy can be measured as the number of options not yet realized in a system of innovations. The generation of new options is probably more important for the quality of knowledge-based innovation systems than prior achievements. Three levels of communication can be distinguished: the communication of information in networks of relations, the sharing of meaning among differently positioned agents in a multi-dimensional vector space, and codes of communication (“horizons of meaning”) which “structurate” meaning processing among reflexive agents. Scientometricians have mainly studied the communication of information; new options, however, are generated and entertained discursively in the knowledge base. The Triple-Helix synergy indicator enables us to measure the generation of redundancy as feedback on historical trajectories. In a number of studies of national systems of innovation (e.g., Sweden, Germany, Spain, China), this measure was used to indicate niches (e.g., regions) in which uncertainty is reduced. Reduction of uncertainty improves the entrepreneurial climate for innovation. The quality of an innovation system can thus be quantified at different geographical scales and in terms of different sectors, such as high- and medium-tech manufacturing or knowledge-intensive services.
    Keywords: Triple Helix; Non-linear Dynamics; University-Industry-Government Relations; Redundancy; Innovation Systems; Knowledge Base
  17. By: Fu, Shihe; Viard, Brian; Zhang, Peng
    Abstract: We provide comprehensive estimates of air pollution’s effect on short-run labor productivity for manufacturing firms in China from 1998 to 2007. An emerging literature estimates air pollution’s effects on labor productivity but only for small groups of workers of particular occupations or sets of firms to ensure causality. To provide more comprehensive estimates necessary for policy analysis, we estimate effects for all but some small firms (90% of manufacturing output in China) and capture all channels by which pollution influences productivity. We instrument for reverse causality between pollution and output using thermal inversions. Our causal estimates imply that a one
    Keywords: air pollution; productivity; environmental costs and benefits; firm competitiveness
    JEL: D62 Q51 Q53 R11
    Date: 2017–04–20
  18. By: Yi Huang (The Graduate Institute, Geneva); Marco Pagano (University of Naples Federico II, CSEF, EIEF, ECGI and CEPR); Ugo Panizza (The Graduate Institute, Geneva, and CEPR)
    Abstract: In China between 2006 and 2013 local public debt issuance crowded out the investment of private manufacturing fi rms by tightening their funding constraints, but it did not affect state-owned and foreign fi rms. The paper, using novel data for local public debt, establishes this result in three ways. First, local public debt is inversely correlated with city-level investment by domestic private manufacturing firms. Second, this fi nding is stronger for private firms that depend more heavily on external funding. And third, in cities where public debt is high, fi rms' investment is more sensitive to internal cash flow, even when cash-flow sensitivity is estimated jointly with the probability of being credit- constrained. These results suggest that the enormous increase in local public debt produced by massive debt issuance as part of the post-2008 fi scal stimulus curtailed private investment, thus weakening China's long-term growth prospects.
    Date: 2017
  19. By: Jones, John Bailey (Federal Reserve Bank of Richmond); Pratap, Sangeeta (Hunter College & Graduate Center - CUNY)
    Abstract: Using a rich panel of owner-operated New York dairy farms, we provide new evidence on entrepreneurial behavior. We formulate a dynamic model of farms facing uninsured risks and financial constraints. Farmers derive nonpecuniary benefits from operating their businesses. We estimate the model via simulated minimum distance, matching both production and financial data. We find that financial factors and nonpecuniary benefits are of first-order importance. Collateral constraints and liquidity restrictions inhibit borrowing and the accumulation of capital. The nonpecuniary benefits to farming are large and keep small, low-productivity farms in business. Although farmers are risk averse, eliminating uninsured risk has only modest effects on capital and output.
    Keywords: Entrepreneurs; financial constraints
    JEL: G31 G32 L26
    Date: 2017–05–08
  20. By: Bachtrögler, Julia; Hammer, Christoph; Reuter, Wolf Heinrich; Schwendinger, Florian
    Abstract: This study introduces a new firm-level dataset containing over two million projects co-funded by the European Union´s (EU) structural and Cohesion funds in 25 EU member states in the multi-annual financial framework 2007-2013. Information on individual beneficiary firms and institutions published by regional authorities is linked with business data from Bureau van Dijk´s ORBIS database. Moreover, we show how modern text mining techniques can be used to categorise EU funded projects into fifteen thematic categories proposed by the European Commission. A first analysis of the dataset reveals substantial heterogeneity of beneficiaries and projects across and within countries. While in the majority of lagging regions the largest project expenditure is dedicated to transportation and energy infrastructure, in most other regions the major part is assigned to innovation and technological development as well as business (including SME) support. In an econometric analysis we control for project and firm characteristics and find that the highest single project values are associated with older beneficiary firms that are larger in size. Furthermore, the projects with topmost expenditure are carried out in Dutch and British regions.
    Keywords: Distribution of EU structural funds, Regional policy, Firm-level data, Cohesion, European Union
    Date: 2017–05
  21. By: Alexey A. Egorov (National Research University Higher School of Economics); Oleg V. Leshukov (National Research University Higher School of Economics); Alexander D. Gromov (National Research University Higher School of Economics)
    Abstract: This paper analyses the contribution of higher education institutions (HEI) in Russia to gross regional product (GRP) growth. We explore the relationship between higher education coverage and rates of economic growth based on longitudinal economic growth models which are pooled regression, fixed effects, and regression with simultaneous fixed and spatial effects. In addition to the influence of HEI on economic growth, the model specifications also allow an investigation of the relationship between the territory accessibility of higher education and GRP growth, and the significance of higher education in regions with different structures of GRP. The main policy outcome of the paper is that universities can be considered as fully-fledged economic agents which make positive contributions to GRP growth. The development of regional higher education systems would lead to a positive effect on regional economic development
    Keywords: higher education, economic growth, spatial effects, influence on GRP, regional economic development
    JEL: I21 I23 I25
    Date: 2017
  22. By: Evelyne POINCELOT (IAE DIJON - Université de Bourgogne (CREGO))
    Abstract: (VF) Les différentes mesures gouvernementales en faveur des PME innovantes, le nombre de sociétés du secteur de biotechnologie introduites en bourse sur les dix dernières années, les caractéristiques de leur financement pré-introduction sont différents facteurs qui justifient de s’intéresser particulièrement aux entreprises dans les secteurs biotechnologies et de l’équipement médical ainsi qu’à leur modalités d’introduction (décote, flottant, procédure de cotation). Différents tests de différence de moyenne ont permis de dégager des résultats significatifs. En comparant avec un échantillon de contrôle (entreprises non éligibles au PEA-PME et n’ayant pas obtenu le statut de Jeune Entreprise Innovante), nous avons constaté que les PME-ETI de ce secteur s’introduisent en bourse plus rapidement, en recourant davantage à la procédure d’offre à prix ouvert (OPO) et font l’objet d’un financement préalable plus important par des actionnaires financiers. Bien que la détention du capital et le désengagement des actionnaires financiers qui sont également les principaux actionnaires soient plus importants, nous ne constatons pas de différence significative avec les sociétés de contrôle. Pour ces sociétés biotech, le désengagement des actionnaires financiers se caractérise davantage par un effet de dilution de leur participation car aucun ne cède de titres et ne souhaite souscrire de nouvelles actions lors de l’introduction. Cet article a permis également de caractériser, de façon approfondie, les entreprises de ce secteur, notamment les actionnaires financiers participant au financement. Les résultats obtenus par les régressions ne mettent pas en évidence de variables significatives susceptibles d’expliquer la décote ou l’importance de la dilution relativement au flottant. (VA) The various government measures in favor of innovative SMEs, the number of biotechnology firms listed on the stock exchange over the last ten years, the characteristics of their pre-introduction financing are different factors that justify a particular interest for these firms and their methods of introduction (discount, float, quotation procedure). Different tests of mean difference have significant results. Comparing with a control sample, we found that SME in this sector are listed on the stock exchange faster, by making greater use of the open-price offer procedure (OPO) and are subject to greater prior financing by financial stockholders. Although the ownership of the capital and the disengagement of the financial stockholders, who are also the main shareholders, are larger, we do not see any significant difference with the control firms. For these biotech companies, the disengagement of financial shareholders is characterized more by a dilution effect of their participation because none sells securities and does not wish to subscribe for new shares at the time of the introduction. This article has also made it possible to characterize, in depth, the firms in this sector, in particular the financial shareholders participating in the financing. The results obtained by the regressions do not reveal any significant variables that may explain the discount or the size of the dilution relative to the float rate.
    Keywords: introduction en bourse, Pme innovante, société de biotechnologie;IPO, innovative SMEs, biotechnology firms
    JEL: G32 G30
    Date: 2017–03
  23. By: Hattori, Masahiko; Tanaka, Yasuhito
    Abstract: We consider a choice of options for a foreign innovating firm to license its new cost-reducing technology to a domestic incumbent firm or to enter the domestic market with or without license under convex cost functions. With convex cost functions the domestic market and the foreign market are not separated, and the results depend on the relative size of those markets. In a specific case with linear demand and quadratic cost, entry without license strategy is never the optimal strategy for the innovating firm; if the ratio of the size of the foreign market relatively to the domestic market is small, license with entry strategy is optimal; and if the ratio of the size of the foreign market relatively to the domestic market is not small, license without entry strategy is optimal.
    Keywords: license with or without entry, duopoly, foreign and domestic markets, foreign innovating firm
    JEL: D43 L13
    Date: 2017–05–07
  24. By: IINO Takashi; INOUE Hiroyasu; SAITO Yukiko; TODO Yasuyuki
    Abstract: Using worldwide patent data and considering co-assignment as collaboration between firms, we compare the characteristics of international collaboration. Then, we examine the effect of knowledge propagation through collaboration on the quality of innovation. Introducing indices proposed in network science to capture firms' status in networks is the feature of this paper. We found collaborations of Japanese firms are less internationalized compared to other countries while Japanese firms tend to collaborate more than others, i.e., they intensively collaborate within a country. However, intensive collaboration within the country doesn't necessary improve the quality of innovation. Instead, firms bridging firms in different groups and creating various connections produce high-quality innovation. This is contrary to U.S. firms which benefit from various type of connections, including intensity of networks. This implies that it is difficult to improve innovation quality by knowledge propagation through collaboration for firms in many countries including Japan.
    Date: 2017–04

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