nep-sbm New Economics Papers
on Small Business Management
Issue of 2017‒06‒04
28 papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. University-Industry R&D Collaboration as an Engine of Firm Growth? An empirical evaluation of knowledge cluster policies in Japan (Japanese) By OKAMURO Hiroyuki; IKEUCHI Kenta
  2. Factors determining the effect of financial risk in the entrepreneurial environment of small and medium-sized enterprises in the Czech Republic By Jaroslav Belas; Jan Dvorsky; Jan Kubalek; Lubos Smrcka
  3. Fostering innovative business investment in Spain By David Haugh; Muge Adalet McGowan; Dan Andrews; Aida Caldera Sánchez; Gabor Fulop; Pilar Garcia Perea
  4. Forgiveness Versus Financing: The determinants and impact of SME debt forbearance in Japan By ONO Arito; YASUDA Yukihiro
  5. Entrepreneurial Motives as a Differentiating Factor in Innovativeness By Ludmila Kozubikova; Gabriela Sopkova; Vladimir Krajcik; Ladislav Tyll
  6. SMEs Innovativeness and Institutional Support System: The Local Experiences in Qualitative Perspective By Anna Lewandowska; Mateusz Stopa
  7. Regional effectiveness of innovation – leaders and followers of the EU NUTS 0 and NUTS 2 regions By Agata Zoltaszek; Alicja Olejnik
  8. Innovative entrepreneurship evaluation in opinion of service company managers in Podlaskie Province By Elzbieta Skapska
  9. Enhancing Polish firms’ innovation activities in comparison to the other Moderate Innovators countries By Aleksandra Zygmunt
  10. The Capital Gaps between Female and Male Entrepreneurs By Bracha Efroni
  11. Enterprise innovation in China: Does ownership or size matter? By Huang, Yanghua; Salike, Nimesh; Yin, Zhifeng; Zeng, Douglas Zhihua
  12. Determinants of Novice, Portfolio and Serial Entrepreneurship: An Occupational Choice Approach By Tran, Hien Thu; Carbonara, Emanuela; Santarelli, Enrico
  13. Duration Model of Enterprises – Analysis of Territorial Groups By Iwona Markowicz
  14. Overseas Production Expansion and Domestic Transaction Networks By HAYAKAWA Kazunobu; MATSUURA Toshiyuki
  15. Innovation as an immanent attribute of an agile enterprise By Agnieszka Rzepka; Andrzej J. Olak
  16. Local Discoveries and Technological Relatedness: the Role of Foreign Firms By Alessia Lo Turco Author-X-Name-First: Alessia; Daniela Maggioni Author-X-Name-First: Daniela
  17. Caracterización de la Deuda de Empresas no Bancarias en Chile By Jorge Fernández; Pedro Roje; Francisco Vásquez
  18. Europa 2020 Strategy target in R&D sector: Visegrad group countries By Nina Bockova; Tomas Meluzin; Stanislav Skapa
  19. Evaluation of the credit risk importance during the crisis: The case study of SMEs according to a time of operating on the market By Jan Dvorsky; Jaroslav Schonfeld; Eva Cipovova; Zora Petrakova
  20. “Internet and enterprise productivity:evidence from Latin America” By Juan Jung; Enrique López-Bazo; Matteo Grazzi
  21. International activity of the innovative enterprises – experience and recommendations By Zofia Grodek-Szostak; Janusz Nesterak; Malgorzata Luc
  22. Innovation Policy in a Networked World By Olav Sorenson
  23. The Impact of Gender Composition of Boards on Firms Financial Performance in Poland By Jolanta Maj; Piotr Bebenek
  24. Entrepreneurship and Industrial Clusters: Evidence from China Industrial Census By Zhu, Xiwei; Liu, Ye; He, Ming; Luo, Deming; Wu, Yiyun
  25. Young Minority Entrepreneurs: Personal Traits and Environmental Constraints By Qaadny Amir
  26. Assessing the effect of public funding on private innovation investment in Uruguay By Felipe Berrutti; Carlos Bianchi
  27. Patent Licensing, Entry and the Incentive to Innovate By Yair Tauman; Chang Zhao
  28. Homophily in Entrepreneurial Team Formation By Paul A. Gompers; Kevin Huang; Sophie Q. Wang

  1. By: OKAMURO Hiroyuki; IKEUCHI Kenta
    Abstract: University-industry research and development (R&D) collaboration has been attracting much attention as an effective means to promote innovation. Also in Japan, public support has been provided to such local R&D collaboration through cluster policies. However, no empirical evaluation has been made using micro data regarding the Ministry of Education, Culture, Sports, Science and Technology (MEXT)'s knowledge cluster policies, which are comparable to those in Europe. Thus, using micro data from public statistics and fixed effect panel estimation, this paper empirically examines the direct effects of these cluster policies on R&D expenditures of cluster universities and firms, on the business performance (including sales growth and productivity) of participating firms, as well as their spillover effects on all manufacturing plants in cluster regions. Estimation results show that after cluster participation, 1) universities and research institutes significantly increased internal and external research expenditures and research funding from private firms, 2) participating firms' business performance did not significantly improve, and 3) manufacturing plants in cluster areas did not significantly increase labor productivity except for smaller ones with less than 50 employees, compared to their counterparts that did not participate in these clusters. These results suggest that MEXT's cluster policies promoted university-industry R&D collaboration, which, however, did not induce overall growth of participating firms' and local manufacturers' productivity.
    Date: 2017–05
  2. By: Jaroslav Belas (Tomas Bata University in Zlin, Czech Republic); Jan Dvorsky (Tomas Bata University in Zlin, Czech Republic); Jan Kubalek (University of Economics); Lubos Smrcka (University of Economics)
    Abstract: Research background: Entrepreneurs enter into business with the aim of gaining the maximum possible profit. They are increasingly willing to tolerate the effect of a greater intensity of financial risk. Factors which influence the intensity of financial risk in a business are related not only to the securing of financial resources, but also to crucial decisions on the parts of entrepreneurs or the ability to manage financial risk during a crisis in small and medium-sized enterprises (SMEs). Aim of the article: The aim of the article is to define and quantify the significance of factors which influence, by their character and effect, the intensity of financial risk in the SME entrepreneurial environment. Methodology/methods: The selection set represented 1,141 SMEs. It was carried out in the Czech Republic in 2015. We used the “inquiring in the form of an online questionnaire” method of ascertaining data. To fulfil the main aim, we used the methods of regression and correlation analyses with the aim of determining the relationship between the intensity of financial risk and the determinants thereof. In the first step, we carried out descriptive statistics (pivot table, scatter plot, skewness, kurtosis, normal distribution plot, and histogram). In the second step, we verified assumptions by carrying out regression modelling and by testing the normal distribution of data in determinants, the assumption of linearity, multicollinearity and homoscedasticity of variables (t-test, z-test, VIF test, Bartlett’s test, F-ratio), and interpreted the results (estimate coefficient of parameters, coefficient correlation, coefficient determination). All the realised tests were carried out on a 0.05 level of significance using IBM SPSS Statistics, Version 23 software. Findings & Value added: On the basis of the results of the questionnaire investigation and using regression and correlative data analysis, we quantified the statistical significance of determinants which influence the intensity of financial risk in the SME segment. The result of key factors serves as a basis for proposing measures in the context of preventing a business from the intensity of financial risk.
    Keywords: financial risk, doing business, entrepreneur, management
    JEL: L26
    Date: 2017–05
  3. By: David Haugh (OECD); Muge Adalet McGowan (OECD); Dan Andrews (OECD); Aida Caldera Sánchez (OECD); Gabor Fulop (OECD); Pilar Garcia Perea (OECD)
    Abstract: Spain has chronically low productivity growth, which undermines its ability to generate higher living standards. Important contributors to low productivity growth are the misallocation of capital to low productivity firms and under-investment in knowledge-based capital. To foster a better allocation of capital a first priority is to better tune bank, capital market and government financing to the needs of new innovative firms. This could be done through better small and medium-sized enterprises (SMEs) bond and loan securitisation tools, reallocating public financing to early stage finance and making it easier for firms to access public innovation funding by shifting some funding from loans to grants for research and development (R&D) projects. Attracting more foreign capital and improving the regulatory framework to increase the return on investment would also help. This could be done by reducing regulatory barriers that hold back competition, improving the neutrality of the tax system, improving pricing signals and reforming insolvency laws.
    JEL: E22 G24 G28 O16 O38 O44 O47 O5
    Date: 2017–05–30
  4. By: ONO Arito; YASUDA Yukihiro
    Abstract: This paper empirically examines the impact of Japan's debt forbearance policies with regard to small and medium-sized enterprises (SMEs) stipulated in the "Act concerning Temporary Measures to Facilitate Financing for SMEs." Using unique Japanese firm survey data that identify firms that received "financing" (such as through the deferral of debt repayments) and firms that received "debt forgiveness" (such as through a reduction in principal and/or interest), we examine the determinants and the effects of debt forbearance to test the theoretical predictions of Krugman's (1988) "financing vs. forgiving a debt overhang" analysis. We find, first, that banks choose debt forgiveness for firms that are more creditworthy and more profitable, which is consistent with the theory of debt overhang. Second, among firms that received debt forbearance, those that had received debt forgiveness had better access to new loans and showed superior ex-post performance than those that received financing, which is also consistent with the theory of debt overhang. Third, compared to firms that had not received any debt forbearance, firms that had received financing were more leveraged and exhibited worse performance, especially those whose forborne loans were covered by public credit guarantees, while firms that had received debt forgiveness exhibited better performance, especially those without public credit guarantees. This suggests that the effectiveness of the SME forbearance policy is adversely affected by the moral hazard generated by public credit guarantee programs.
    Date: 2017–05
  5. By: Ludmila Kozubikova (Tomas Bata University in Zlin); Gabriela Sopkova (University of Economics in Bratislava); Vladimir Krajcik (Pan-European University); Ladislav Tyll (University of Economics)
    Abstract: Research background: SME character determines that entrepreneur´s personality plays a significant role in their management. For this reason it is necessary to consider the personality as a whole including his/her motives for entrepreneurship. Purpose of the article: The aim of this article is to examine the relationship between entrepreneurial motives and innovativeness in the small and medium-sized enterprises (SMEs) sector in the Czech Republic. Methodology/methods: We have analyzed the data collected in 2015 from 1141 SMEs from 14 regions of the Czech Republic. For the purpose of this article we focused on the motives for doing business, which were analyzed on the part of the whole sample including two selected groups of respondents. The first group (330 respondents) consisted of entrepreneurs who featured money as the most important motive for starting up a business and the second group (251 respondents) consisted of entrepreneurs who featured mission as the main reason for starting up a business. Findings & Value added: We have revealed statistically significant differences in innovativeness between the entrepreneurs motivated by money and the entrepreneurs motivated by mission. Regardless of the entrepreneurial motives vast majority of entrepreneurs consider the innovativeness to be important for their company.
    Keywords: entrepreneurial motives, innovativeness, proactiveness, mission, money
    JEL: L26
    Date: 2017–05
  6. By: Anna Lewandowska (University of Information Technology and Management, 35–225 Rzeszow, ul. Sucharskiego 2, Poland); Mateusz Stopa (University of Information Technology and Management, 35–225 Rzeszow, ul. Sucharskiego 2, Poland)
    Abstract: Innovations are considered to be one of the most progressive determinants of socio-economic growth, also in the regional and local perspective (compare Petrariu, et al., 2013; Priede & Pereira 2013; Sternberg & Arndt, 2001). The high level of innovation has a positive impact on productivity at the firm level (business performance, see, e.g. Bhaskaran, 2006) and consequently also on the economic results at regional or national level (economic performance, see, e.g. DiPietro & Anoruo, 2006). The aim of this paper is to contribute to a greater understanding of the research on institutional support system for SMEs innovativeness in the Podkarpackie region. In analyzing this case, we raise the following two questions: (1) what are the types of innovation strategies of SMEs in Podkarpackie?; (2) what are the factors affecting innovation and potential barriers to further use of institutional support system aimed at the implementation of innovation in enterprises. The study was qualitative interviews (in-depth interviews - IDI) with key individuals in SME’s, R&D units, business environment institutions, regional and local authorities. Based on the opinion of entrepreneurs and others, evaluated programs and projects dedicated to innovation and identified barriers encountered by entrepreneurs limiting the implementation of innovation. Made in this way to assess the effectiveness of institutional support system. The results of our research show that institutional support system mitigate negative consequences of peripheral localization of the enterprises, where specific innovation strategy has no influence on SMEs assessment of innovation effectiveness. The innovation is too costly and SMEs are too weak in peripheral region, therefore there is great need for reasonable and flexible institutional support system. However, peripheral situation influences this institutional system itself, strengthening the mechanisms of self-cenzorship.
    Keywords: innovation; innovation strategies; SMEs; institutional support system
    JEL: L25 O12 O33
    Date: 2017–05
  7. By: Agata Zoltaszek (Faculty of Economics and Sociology, University of Lodz); Alicja Olejnik (Faculty of Economics and Sociology, University of Lodz)
    Abstract: Innovation constitutes an important factor for growth in all EU countries. Regions of the EU play a principle role in shaping new innovation trajectories and in bringing out the hidden potential for national growth. However, it is not only the level of innovation that diversifies regions, but also the innovative potential and the level of its realization. Therefore, the aim of this paper is to assess the realization of innovative potential, defined as effectiveness, in EU NUTS 0 and, if possible, NUTS 2 regions. To accomplish this goal a relative effectiveness method in used. The DEA (Data Envelopment Analysis) makes it possible to analyse the relative technical effectiveness based on regional inputs and outputs, without incorporating the legal and technological specifications of innovations, thus treating it like a production process. The inputs of the process are employment in technology and knowledge-intensive sectors and R&D expenditure, while the outputs include the number of patents and GDP. All variables are standardized by the size of the economically active population. DEA results divide regions in to two groups – effective, being the leaders; and ineffective, or followers. The DEA approach was combined and extended by ESDA (Exploratory Spatial Data Analysis) in order to pinpoint spatial patterns of innovation efficiency across NUTS 2 regions. Defining the best practices and implementing the learning-from-the-best policy is important in the process of regional development and specialization
    Keywords: regional innovation, effectiveness, DEA (data envelopment analysis), regional development, spatial autocorrelation, ESDA (exploratory spatial data analysis)
    JEL: C44 C46 C38 O31 O11
    Date: 2017–05
  8. By: Elzbieta Skapska (Bialystok University of Technology)
    Abstract: The analysis of contemporary economies pursuing service based economies shows the issue concerning the innovation in services. It seems to be important from the standpoint of modifying the actions of enterprises and economies on competitive, local, national and international arenas. The economic practice and public activity prove there is a need for intelligent growth. It consists in the development of economy that is based on knowledge and innovation – the development which produces high added value. Thus, it is necessary to foster creative entrepreneurship that inclines towards the introduction of changes at the level of an enterprise which results in contributing to the creation of good economic condition in general. Research background: The article regards the issue of Podlaskie enterprises that tend to introduce innovation within the services of a higher level, understood as services, that creates added value from the point of view of service company managers. Purpose of the article: The aim of the article is to examine the opinions of managers from Podlaskie on innovation in services and whether the range of provided services is accepted by service receivers. Methodology/methods: The realization process of the assumed goal shall use the monograph and survey methods as well as analysis and synthesis. The survey is directed at managers of Polish companies in Podlaskie province. It regards factors that rule the inclination for the introduction of changes in service nature and its quality in the period of 1-3 years (stimulating and inhibitive). Findings & Value added: The research shows that the analyzed sub sector of services is an interesting area in the context of innovation in the micro scale and thus has potential for further study.
    Keywords: service enterprises, innovations in services, service manager, Podlaskie Province
    JEL: D11 D33 D70
    Date: 2017–05
  9. By: Aleksandra Zygmunt (Opole University of Technology, Poland)
    Abstract: Faced with circumstances of rapid changes, the crucial is stimulation of actions aimed at enhancing competitiveness. In this regard, the European Union strategy Europe 2020 should be mentioned. Concerning the role of firms’ innovation activities in economic growth of regions and countries, it is important to explore how enhancing Polish firms’ innovation activities differ between the EU countries with a similar to Poland level of innovation. Thus, the particular emphasis was put on the Moderate Innovators countries.The aim of this paper is to investigate enhancing Polish firms’ innovation activities against those from the other Moderate Innovators countries.The study was based on data from the European Innovation Scoreboard 2016 related to firm activities dimensions: firm investments, linkage & entrepreneurship and intellectual assets. The time period was 2008–2015 and was limited by data availability. To study multivariate analysis and the zero unitarization methods were applied. These methods allowed to multivariate analysis of enhancing firms’ innovation activities in Poland and those from the other EU countries with similar to Poland level of innovation.This paper contributes to the existing literature by providing new insight on understanding the issues related to firms’ innovation activities. The results reveal, among others, that although Polish firms’ innovation activities have improved against those from the other Moderate Innovators counties, it requires further enhancing. The findings have practical and policy implications. It is assumed that the obtained results may be useful for firms, regions and country in enhancing competitiveness.
    Keywords: innovation activities; firm; the European Union; Moderate Innovators countries
    JEL: O30 O52 R11
    Date: 2017–05
  10. By: Bracha Efroni (Poznan University of Economics and Business)
    Abstract: Research background: Today countries have realized the importance ofsmall and medium enterprises (SMEs) to economic and social development. Entrepreneurship currently provides the most critical source of economic growth for countries. In most countries women own about 30% of small businesses. Since small businesses are the pillar of the economy, entrepreneurship is its growth engine, and women constitute about 50% of the population, it is important to research businesses and entrepreneurship among women so as to strengthen the economy. Women who decide to engage in entrepreneurship encounter many challenges, during both the establishment and management of the venture. Some of these challenges are shared by both male and female entrepreneurs, while some are relevant only to women. Purpose of the article: Since female entrepreneurship is extremely vital to a country’s economy, entrepreneurship among women must be encouraged. To do this, it is first necessary to understand the gaps between male and female entrepreneurs. Such gaps can only be reduced bycontinuing to research their origin and how they can be decreased. Methodology/methods: This article is based on literary research focusing on the differences between male and female entrepreneurship. Nearly one hundred articles, reports, and books were reviewed. The study results were synthesized on the basis of 40 works. Findings & Value added: Three main types of entrepreneurial gaps were found between women and men: social capital, financing capital, and human capital. The gender gap in entrepreneurship is explained in women’s structural disadvantages regarding the achievement of the resources relevant to the success of the business.
    Keywords: female entrepreneurship; gender gap; human capital; financing capital; social capital
    JEL: L26 J16
    Date: 2017–05
  11. By: Huang, Yanghua (Institute of Industrial Economics, Chinese Academy of Social Sciences); Salike, Nimesh (Division of Economics, Xi'an Jiaotong-Liverpool University); Yin, Zhifeng (School of Economics, Central University of Finance and Economics); Zeng, Douglas Zhihua (World Bank)
    Abstract: In contrast to previous papers, where in these two important aspects of innovation were delved separately, this paper analyses the effects in unison by using the most comprehensive data on Chinese enterprises- World Bank China Enterprise Survey (2012). Our dependent variables are innovation performance measured in various dimensions: the probabilities of R&D expenditure, staff training, product innovation, process innovation and management innovation. Our key variables of interest are ownership based on largest share (SOE, private and foreign) and firm size based on the number of employees. The analysis is based on panel data approach with different dimensions added (city, industry fixed) and the interaction of ownership and size variables. Major findings suggest that SOEs and domestic private enterprises are much alike in innovation participation, but different in innovation diversification that leads to ownership specific innovative advantage. Foreign enterprises are innovative in most of the innovation measurements. Size if positively correlated to innovation. We also find that as the size of enterprise increases, ownership specific innovative advantage is subject to changeable. That implies ownership and size should be examined jointly rather than separately. The result also shows the effects of ownership and size on innovations are uneven geographically and industrially.
    Date: 2017–05–24
  12. By: Tran, Hien Thu; Carbonara, Emanuela; Santarelli, Enrico
    Abstract: In this paper we present an occupational choice model for entrepreneurs, in which, based on their individual skills and on the quality of their business, entrepreneurs can keep their original business, open a new business in the same or another sector along the current business (portfolio entrepreneur), shut it down to either start a new one (serial entrepreneur) or to turn to dependent employment. We test our theory using a 10-year panel dataset (2001 to 2010) of more than 4,000 Vietnamese manufacturing firms. We estimate an occupational choice model and a survival model and find that: (i) a greater endowment of human capital is associated with a higher likelihood to become a serial or a portfolio entrepreneur; (ii) A higher quality of the new business is associated to a higher likelihood of being habitual entrepreneurs. Particularly, high entrepreneurial skills together with a high-quality business positively influence the likelihood to be serial or portfolio; (iii) novice entrepreneurs with high entrepreneurial skill and a high-quality business are more likely to keep their business.
    Keywords: Portfolio entrepreneurship,serial entrepreneurship,occupational choice,industrial policy
    JEL: F02 L26 L53
    Date: 2017
  13. By: Iwona Markowicz (University of Szczecin, Poland)
    Abstract: The popular term of business demography or demography of the firm denotes a relatively young area of science which focuses on the structures of cohorts of firms and the changes that undergo within these structures. As both the terms suggest, the studies use research methods traditionally applied in demographic studies. Survival analysis is increasingly used in business demography. The purpose of the present study was to build the enterprises survival models for territorial groups in Zachodniopomorskie (Poland). In the first stage the Kaplan-Meier estimator was calculated and the test to verify the similarity of the survival function for poviats was conducted. Poviats were classified into groups. Next, the tables of enterprises survival were built and the business liquidation intensity was analysed in individual groups. In this study the continuous-time non-parametric models were used: Kaplan-Meier estimator, Gehan test and duration table. Those methods were employed to model the survival time and find differences in the survival of firms in the poviats of the Zachodniopomorskie. In keeping with the above scheme five territorial groups with similar enterprises survival time models were distinguished. The study results presented in this article reveal the differentiation of enterprises survival models in the territorial groups. Five groups of poviats were distinguished. These groups, as a result of the study, have been characterized.
    Keywords: model of enterprises duration; Kaplan-Meier estimator; hazard function; cohort tables of enterprises survival
    JEL: C10 C14 C41
    Date: 2017–05
  14. By: HAYAKAWA Kazunobu; MATSUURA Toshiyuki
    Abstract: In this study, we empirically examine the effects of customers' foreign direct investment (FDI) on their domestic transaction ties and the performance of their suppliers. In particular, we examine the difference in such effects between the first- (direct) and second-tier (indirect) suppliers. To this end, we utilize a unique firm-level survey in Japan that contains information on inter-firm transaction networks matched with FDI data. Our findings can be summarized as follows. There is no evidence that customers' FDI is more likely to suspend their domestic transactions. Rather, direct suppliers' transaction ties with multinational enterprises (MNEs) are more persistent than those with other firms. Although such an effect becomes weak for transactions between direct and indirect suppliers, we did not find a negative effect. Furthermore, customers' FDI has a significantly positive impact on employment growth for both their direct and indirect suppliers.
    Date: 2017–05
  15. By: Agnieszka Rzepka (Lublin University of Technology); Andrzej J. Olak (The BronislawMarkiewicz State Higher School of Technology and Economics in Jaroslaw, Poland)
    Abstract: Each organization faces the challenge of operating in an environment that is unpredictable and turbulent. Emergence of business era caused that change had become a key feature that determines the economic environment of an enterprise. Market environment forces companies to seek strategic orientation that would allow them to use market opportunities and come to grips with growing customer demands. These goals can only be achieved by an organization that bears the hallmarks of agility. The purpose of this article is to analyze relationships between obtaining an ability to be innovative and agility attributes of an organization. The problem was analyzed on the basis of empirical research of an international character. The article points out that adopting by a company agility attributes translates into a better competitive position and a higher level of innovation. Innovation in an enterprise constitute an impulse to take new challenges, which perfectly fits into the paradigm of the organization’s agility. In turn, through innovation, companies become agile. The presented research confirms that there is a connection between having agility attributes by a company and obtaining by it a high level of innovation. Many authors also specify important role of IT system in introducing product innovations and innovation processes
    Keywords: innovation, agile, SME
    JEL: O30 M21 P42
    Date: 2017–05
  16. By: Alessia Lo Turco Author-X-Name-First: Alessia; Daniela Maggioni Author-X-Name-First: Daniela
    Abstract: We explore the role of local intra and extra-regional product-specific capabilities in foster ing the introduction of new products by firms active in the Turkish manufacturing sector. We model firmsÕ product additions to their product basket as dependent on extra and intra-regional knowledge. We find that regional "discoveries", that is newly introduced products never produced before in the region, are positively and significantly affected by external related knowledge spurring from foreign firms active in the same location as well as by firm internal capabilities. Technologically related intra-regional knowledge spillovers and extra-regional knowledge spilling from imported inputs do not play a relevant role. The former, however, matter when we extend the analysis to all new products introduced by firms, regardless of their previous presence in the regional production basket. We interpret this evidence as foreign affiliates bringing new and exclusive capabilities which are missing in the region where they locate, thus providing a stimulus for regional production diversification and upgrading. This hypothesis is validated by exploring the heterogeneous role of the different intra and extra-regional knowledge sources according to productsÕ complexity. Length:
    JEL: F11 F14 D22 D80 N30
    Date: 2017–06
  17. By: Jorge Fernández; Pedro Roje; Francisco Vásquez
    Abstract: Credit to the non-financial sector is relevant for the financial stability of a country. This paper presents the evolution of the indebtedness of non-banking firms in Chile based on micro data from different sources between 2009 and 2016. This database allows us to differentiate firms by sources of financing, size and economic sector. The main results are: i) firms that do not report to the SVS and only use local financing concentrate the bulk of the local bank credit, ii) among the remaining firms, debt growth is mainly explained by external funding sources and iii) between 2012 and 2015, most of debt growth has occurred in those firms that start with high amounts of debt, as a result of the issuance of external bonds and obligations associated with Foreign Direct Investment (FDI).
    Date: 2017–02
  18. By: Nina Bockova (Department of Economics, Faculty of Business and Management, BUT); Tomas Meluzin (Department of Economics, Faculty of Business and Management, BUT); Stanislav Skapa (Department of Economics, Faculty of Business and Management, BUT)
    Abstract: This contribution analyses the relationship between Research and Development funding’s and economic growth within the Visegrad Group during the period 2005-2014. The studied geographical area is regions NUTS 2 of the Visegrad Group. The indicators considered in this contribution are GDP per inhabitant, percentage of GERD performed by business sector and GERD as percentage of GDP. The econometric analysis show that R&D Intensity is an important driver of economic growth (R = 0.64) that is measured by GDP per inhabitant in PPS. This contribution is the result of a two-phase research fellowship funded by the Internal Grant Agency of the Brno University of Technology. The first phase project research produced a regression analyze with dependent variable GDP per inhabitant and independent variable GERD as percentage of GDP. In the second phase of the research were formulated econometric models. This contribution answers the following question: Can the Visegrad Group Members reach the Europa 2020 Strategy target in R&D, i.e. 3% of GDP to be invested into the R&D sector. This research uses Eurostat database for the analysis of the relationship between R&D funding by the business sector and the corresponding economic growth. The research is based on dependent variable GDP per capita and independent variables: GERD and R&D Intensity during the period 2005-2014. The fit goodness of the model is evaluated the determination coefficient, using T-test on the regression coefficients. The autocorrelation in the residuals is checked by applying the Durbin-Watson (D-W) test. The statistical analyze is performed by using Stepwise Multiple Regression in software STATISTICA 12. Main result of research provides relationship between economic growth measured by GDP per inhabitant and R&D expenditures as percentage of GDP. The studied statistical data set is 38 NUTS 2 regions in Visegrad Group. If the Visegrad Group regions will the 3% target then GDP PPS per inhabitant in equal to 29,276. The result of the research can be used for the Visegrad Group governments.
    Keywords: economic growth; Visegrad Group; comparative study; regression analysis; Europe 2020 strategy
    JEL: O11 O47 O57
    Date: 2017–05
  19. By: Jan Dvorsky (Tomas Bata University in Zlin); Jaroslav Schonfeld (University of Economics); Eva Cipovova (Czech Technical University in Prague); Zora Petrakova (Slovak University of Technology)
    Abstract: Research background: One of the possibilities for entrepreneur who is trying to start-up a successful business or grow a business, is to ensure the business from an economic perspective. Entrepreneurs can use a various alternative forms of financing. Despite the wide range of programs, grants and subsidies, the most commonly used form of financing is still a loan which is provided by the bank institutions. The relationship between entrepreneurs and banking institutions is mainly connected in the area of lending and guarantees for funding. Therefore the perception and the evaluation of the credit risk by entrepreneurs contributes to a better understanding of needs of both sides. Purpose of the article: A comparison of the evaluation of factors which affect the perception and management of the credit risk by entrepreneurs. Not only socio-demographic factors (gender, level of education or age of entrepreneurs) but also the nature of corporate activities in the business environment for small and medium-sized enterprises in the Czech Republic. Methodology/methods: During data collection, method of random firm’s selection using specialized database of companies “Albertina” was used. Afterwards, the method of interview with responsible managers of the company and method of online questionnaire survey were used. Data from 1141 enterprises in 2015 from all 14 regions of the Czech Republic were collected. In the first step of our research, the descriptive statistics (pivot tables, pie charts) were conducted. Afterwards, the two-sample t-test to compare a mean values of the perceptions of credit risk factors and verify the conditions for its completion (Histogram, Q-Q plot, Goodness of Fit Test, Pearson coefficient of contingency, t- test). Findings & Value added: With an increase of the time of operating in the business environment, the amount of women as a responsible people for business management is decreasing. Entrepreneurs are united in the opinion that the importance of credit risk during the crisis increases. There are statistically significant differences between entrepreneurs by a gender and age in enterprises with a time of operating on the market between 5-10 years that the importance of credit risk during the crisis increases.
    Keywords: enterprise, credit risk, business environment, banks
    JEL: L26
    Date: 2017–05
  20. By: Juan Jung (AQR-IREA, University of Barcelona); Enrique López-Bazo (AQR-IREA, University of Barcelona); Matteo Grazzi (Inter-American Development Bank)
    Abstract: This paper tests three hypotheses regarding the link between internet and firm productivity: i) internet adoption and use constitute a source of productivity growth for firms in Latin America, ii) the intensity of its use also matters, and iii) the link between the new technologies and productivity levels is not uniform over the whole productivity distribution. The evidence in this paper fills the gap of scarce and fragmented literature focused on Latin America, and is aligned with previous research for more developed regions which has generally recognized that Information and Communication Technologies (ICTs) have radically changed how modern business are conducted, benefitting firm performances through several channels, such as increasing the efficiency of internal processes, expanding market reach or increasing innovation.Our findings suggest that low-medium productive firms benefit more from an expansion in internet adoption and use, in comparison with the most productive ones. If this evidence is supposed to reflect long-term effects, then public policies oriented to massify internet adoption and promote internet use intensively will surely contribute to reduce inequalities of enterprise’s productivity levels, promoting a level playing field among Latin American firms, something especially relevant for the most unequal region of the world.
    Keywords: ICT, Internet, Productivity, firms, Latin America JEL classification: D22, O31, O33, O54
    Date: 2017–05
  21. By: Zofia Grodek-Szostak (Cracow University of Economics); Janusz Nesterak (Cracow University of Economics); Malgorzata Luc (Jagiellonian University in Cracow)
    Abstract: Research background:.In the international literature we can find great examples of research in the field of innovation and technological cooperation boosting between companies. Confrontation of theory and empirical research shows that meaning of cooperation and geographical closeness for innovative activity as well as the quality and effectiveness of public support are still ambiguous. Public support of technological cooperation is connected with different components of innovative network, that shows the need of horizontal cooperation, what is legitimate in developed countries. Great example of that kind of international network is Enterprise Europe Network (EEN). Innovative cooperation and technology transfer infiltration always have been a subject of research, but still there are issues to investigate. Because of that reason, there was a research hypothesis created: international technology transfer performed among companies and other economic entities accelerates innovative processes and gives profits for both players. Purpose of the article: The purpose of this article is to show different aspects among cooperation and technology transfer and trial to evaluate its synergical impact on international innovative activity of companies. Methodology/methods: This paper illustrates theoretical and empirical research in the scope of many aspects of innovative cooperation and technology transfer. The empirical analysis focused on data from the Enterprise Europe Network in 2009-2015 and interviews with offices supporting companies in starting and performing of international technological cooperation. The presentation of spatial connections of technological cooperation was illustrated by the Gastner Newman’s amorphous (eumorphous) choropleth, created in the ArcMap 10.4.1 programme with the use of the quantile method. Findings: The article discusses the role of cooperation among network in the international technology transfer. A special analytical emphasis was put on the public networks supporting such cooperation. Specific knowledge and technology is very often out of reach for companies (especially SMEs) because of costs or limited access, and cooperation provides the opportunity to create new relations which can integrate ideas and knowledge, and in effect, lead to new ground-breaking innovations. There is also the significant element like public support for companies in the whole technology transfer process.
    Keywords: technology, support, cooperation, innovation, management
    JEL: O14 O11
    Date: 2017–05
  22. By: Olav Sorenson
    Abstract: Social relationships channel information, influence, and access to scarce resources. As a consequence, social networks – the patterns of these relationships across the members of a community – influence who comes up with important innovations, whether and how rapidly those innovations get adopted, and who has the ability to commercialize them. They therefore also affect the overall rate at which innovation occurs in the economy. This essay provides an introduction to and review of the research on social networks most relevant to innovation, with a particular focus on the earliest stages of the innovation process. It then discusses the likely consequences of a variety of policy interventions that could either reduce the importance of social relationships to innovation or alter the patterns of relationships in ways that might promote innovation.
    JEL: O31 O32 Z13
    Date: 2017–05
  23. By: Jolanta Maj (Opole University of Technology); Piotr Bebenek (Opole University of Technology)
    Abstract: The so far conducted studies have not been able to answer the question of whether there is a relationship between gender composition of the board and the firms financial performance. Because of the tendency to legally regulate the gender balance of boards of directors as it was, among others, planned in the draft of the EU Directive on improving the gender balance among non-executive directors of companies listed on stock exchanges, which admittedly has been rejected, however, indicates the existence of certain trends among decion-makers, the issue of determining the relationship between gender composition of the boards and firms performance becomes an extremely important issue. The paper aims to answer the question on the number of women in the highest organizational bodies in Polish enterprises and whether there is a relationship between the compositions of boards due to gender of their members and financial results achieved by the companies. For the analysis companies listed on the Warsaw Stock Exchange were analyzed. Following indicators: debt ratio (DR), debt to equity ratio (D/R) and the long-term debt to total assets ratio were chosen. Using statistical analysis the financial indicators were juxtaposed with the number of women on boards. The paper provides insight into the composition of boards in Polish companies listed on the Warsaw Stock Exchange due to gender. It shows that boards of these companies are highly masculine. Nevertheless the paper tries to show if there are any dependencies between the amount of women on boards and the financial performance of the companies.
    Keywords: gender diversity; corporate governance; board composition; firm performance; financial performance
    JEL: M14 M12
    Date: 2017–05
  24. By: Zhu, Xiwei (School of Economics, Zhejiang University); Liu, Ye (School of Economics, Zhejiang University); He, Ming (Division of Economics, Xi'an Jiaotong-Liverpool University); Luo, Deming (School of Economics, Zhejiang University); Wu, Yiyun (School of Economics, Zhejiang University)
    Abstract: This article studies the synergy effect of entrepreneurship on China’s industrial clusters. We propose an extension to Duranton and Overman’s (2005) method which enables us to delimit industrial clusters in space. The empirical model is identified with historical measures of local entrepreneur potential in the spirit of Chinitz (1961). We find that measures of entrepreneurship contribute significantly to cluster formation, cluster size, and cluster strength. Access to sea ports stimulates industrial concentration but agricultural legacy has the opposite effect. Light industries have more clusters which are also larger and stronger. Clusters also benefit from historical measures of market potential, localization/urbanization economies, and urban population density. Most of the results are robust to alternative instrumental strategies. Finally, we find evidence that the synergy effect is stronger where the local conditions are favorable to clusters.
    Date: 2017–05–24
  25. By: Qaadny Amir (Poznan University of Economics and Business, Poland)
    Abstract: In recent years, the number of new entrepreneurs has been growing particularly among young people and minorities. The young minority entrepreneur is a distinct sub-set within the category of young entrepreneurs because he faces additional social and cultural barriers, limited economic and resource access and availability, discrimination and even outright racism not experienced by mainstream entrepreneurs. In this review, we have found it necessary to distinguish between two groups of minorities: the ‘immigrant minority’ and the ‘local ethnic minority’ who might or might not be a numerical minority but who live under the constraints of a ruling hegemony, a distinction which has profound consequences on entrepreneurial activity. To provide an overview of the updated understanding of the young minority entrepreneur as well as to refine some critiques. This article is based on a review of nearly one hundred academic papers, reports, and books in the field. Entrepreneurship can be the result either of a free positive choice or a necessary escape strategy of survival for those who have no option of salaried work opportunities. It brings into play personal traits, education and environmental support or constraints.
    Keywords: young entrepreneurs; minority; personal and traits characteristics; socio-cultural aspects; environmental constraints
    JEL: L26 J15
    Date: 2017–05
  26. By: Felipe Berrutti (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Carlos Bianchi (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: Despite the recent research efforts and methodological improvements, empirical evidence on the additionality effects of public innovation programs shows heterogeneous results by firm, sector, country and type of innovation. This paper assesses input additionality of public funding on private innovative investment of Uruguayan firms by applying a longitudinal analysis from 2001 to 2012. During this period, there was a dramatic increase of public innovation funds. However, the number of innovative firms remains stable and the amount of public funding for innovation at firm level is still very low. In this context, previous innovation experience appears as the most significant determinant of access to public innovation support. Moreover, we find evidence of a moderate substitution effect between public and private funds. We analyzed heterogeneous effects according to type of innovation, finding significant effects only for innovation based on acquisition of artifacts (embodied). We conclude on the main challenges of the current policy mix in Uruguay, stressing the relevance of further research lines on behavioral additionality to contribute to improve policy results.
    Keywords: public funding; input additionality, innovation survey, Uruguay
    JEL: O3 O38 L2 H81
    Date: 2017–04
  27. By: Yair Tauman; Chang Zhao
    Date: 2017
  28. By: Paul A. Gompers; Kevin Huang; Sophie Q. Wang
    Abstract: We study the role of homophily in group formation. Using a unique dataset of MBA students, we observe homophily in ethnicity and gender increases the probability of forming teams by 25%. Homophily in education and past working experience increases the probability of forming teams by 17% and 11 % respectively. Homophily in education and working experience is stronger among males than females. Further, we examine the causal impact of homophily on team performance. Homophily in ethnicity increases team performance by lifting teams in bottom quantiles to median performance quantiles, but it does not increase the chance of being top performers. Our findings have implications for understanding the lack of diversity in entrepreneurship and venture capital industry.
    JEL: J15 J16
    Date: 2017–05

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