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on Small Business Management |
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Issue of 2017‒08‒06
eleven papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Arun, Korhan; Yıldırım, Durmuş Çağrı |
| Abstract: | As innovative firms have considerable competitive advantage; more foreign direct investment (FDI) research has been related to the innovation. The primary aim of this study is to explore how intra-regional economies interact with host countries’ innovative performance, and how they are affected by FDI. Azerbaijan, Georgia and Turkey, located in the South Caucasus region, are selected as examples. Numbers of patent applications, R&D expenditure (% of GDP), and intellectual property payments are chosen as factors indicative of innovation. While this research tries to explore whether these three countries, connected by large trades, can act as a clustered group; Panel cointegration and Panel OLS models are used for analysis. The results show that FDI is an important variable affecting the level of innovation in the panel analysis. Nevertheless, individual relationships with FDI vary, and cointegration analysis shows heterogeneity. That is, foreign direct investment could play a central role in increasing the level of innovation for Azerbaijan and Georgia, but it is not an important determinant of Turkey's economic innovation level. Countries should realize that when their economies are becoming stronger, FDI is not a useful tool for escalating innovation, rather they should be in clusters that can leverage innovation. |
| Keywords: | Foreign Direct Investment (FDI), Innovation, Panel Data Analysis, Panel OLS, Azerbaijan, Turkey, Georgia |
| JEL: | F21 O32 O34 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80470&r=sbm |
| By: | Koutroumpis, Pantelis; Leiponen, Aija; Thomas, Llewellyn D W |
| Abstract: | Although innovation opportunities within the ICT industry are assumed high in comparison with other industries because of their rapidly evolving technological trajectory, little empirical research systematically investigates the distribution of returns to R&D investment across industries and types of firms. Building on the technological opportunity framework, we examine the effect of R&D on firm revenues in a large panel of European firms and study its variation with the age, size, and sub-sector of firms. We confirm that R&D investments in ICT firms have a larger effect on their revenue performance when compared to non-ICT firms and that the effect is higher for small firms and for firms in Internet services and ICT component manufacturing. At the firm level, our results suggest that smaller and, surprisingly, older ICT firms are technologically opportunistic and exhibit the flexibility and adaptability to both identify and respond to technological opportunities and develop innovative products and services. We highlight some implications for R&D investment and policy. |
| Keywords: | ICT, R&D, firm performance, technological opportunity, firm age, firm size |
| JEL: | O31 O32 D24 |
| Date: | 2017–08–02 |
| URL: | http://d.repec.org/n?u=RePEc:rif:wpaper:51&r=sbm |
| By: | Brunow, Stephan (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Hammer, Andrea; Mc Cann, Philip |
| Abstract: | "Knowledge Intensive Business Services (KIBS) are widely perceived as being important drivers of technological progress and innovation. KIBS are generally understood as depending, driving and thriving on knowledge exchanges and therefore, geographical proximity to markets, customers and suppliers would be expected to be a critical factor in their performance. This paper investigates how the innovation performance and processes of KIBS firms are related to their distance from the nearest city and also to the size of the nearest city. For this purpose we make use of detailed firm level data and consider Germany as a research field. While most current evidence on this topic emerges from Canada, we complements and add to this existing literature on the geography of KIBS by examining these issues in the German spatial setting which largely conforms to a textbook type of spatial urban hierarchy. Our probit results indeed find that there are very strong distance decay and city size effects, and these also vary according to the innovation type." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | Innovation, unternehmensbezogene Dienstleistungen, Wissensarbeit, regionale Faktoren, Stadt-Umland-Beziehungen |
| JEL: | D22 L84 O31 R12 |
| Date: | 2017–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201722&r=sbm |
| By: | Jorge Britto (UFF, Brazil); Leonardo Costa Ribeiro (Inmetro, Brazil); Lucas Araújo (UFF, Brazil); Eduardo da Motta e Albuquerque (CEDEPLAR/UFMG, Brazil) |
| Abstract: | In a knowledge economy, the creation, distribution and use of knowledge become decisive factors to reinforce firms' competitiveness. At the firm level, the process of innovation involves, fundamentally, the creation of new knowledge, which implies the integration and recombination of existing knowledge that may come from different sources and locations. The analytical difficulties to deal with this subject generate a literature that tries to quantify and analyze knowledge flows between economic agents using patent citations. Those citations may provide clues for intra and inter-firms knowledge flows. The paper analyses information about patents granted by IBM in the USPTO, which is used to map knowledge flows and to correlate these flows with the evolution of IBM competences and growth strategies. |
| Keywords: | Patent Citations; Knowledge flows; Firms Competences, IBM Competences; IBM Strategy |
| JEL: | O32 O34 O39 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td561&r=sbm |
| By: | Julian di Giovanni; Andrei A. Levchenko; Isabelle Mejean |
| Abstract: | This paper investigates the role of individual firms in international business cycle comovement using data covering the universe of French firm-level value added and international linkages over 1993-2007. At the micro level, trade and multinational linkages with a particular foreign country are associated with a significantly higher correlation between a firm and that foreign country. The impact of direct linkages on comovement at the micro level has significant macro implications. Without those linkages the correlation between France and foreign countries would fall by about 0.098, or one-third of the observed average correlation of 0.291 in our sample of partner countries. |
| Keywords: | comovement, international trade, firm-level shocks, large firms |
| JEL: | F44 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:981&r=sbm |
| By: | Nadine Levratto; Clarisse Nguedam Ntouko; Maarouf Ramadan |
| Abstract: | On the basis of a broad definition of firms’ internationalization, this paper provides an empirical analysis of this question using a two-stage model, which first estimates the determinants of international commitment and the factors explaining the different types of internationalization strategies. The empirical analysis relies on firms’ individual data covering three countries (Jordan, Lebanon and Turkey) in 2013. We show that the probability of being internationalized and internationalization types depend on a combination of factors such as firms’ characteristics, access to finance and institutional framework. The determinants of internationalization as well as the number and types of internationalizations are heterogeneous depending firms' size and sectors in which they operate. |
| Keywords: | Firms' internationalization, Institutions, Business climate, Middle East and North Africa (MENA) |
| JEL: | D22 D23 O19 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2017-37&r=sbm |
| By: | Heather D Gibson (Bank of Greece); Georgia Pavlou (Bank of Greece) |
| Abstract: | This paper explores differences in performance between firms that export and those that do not. With only a few exceptions, exporters have characteristics which suggest “better” performance than non-exporters, controlling for observed and unobserved heterogeneity. This paper aims to provide evidence on the differences between exporters and non-exporters in terms of labour productivity and profitability across time, different sectors of economic activity and different size groups, using data from exporting and non-exporting firms incorporated in Greece for the period 2006-2014. The results suggest that the exporter productivity premium is around 14% for the whole sample, pointing to a significant productivity advantage for exporting firms which is even stronger in certain sectors of economic activity. There is also evidence in favour of higher productivity growth for always-exporting firms and starters, while there is a negative, though insignificant, effect for stoppers. |
| Keywords: | export premia; labour productivity; Greece; firm performance |
| JEL: | F14 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:bog:wpaper:228&r=sbm |
| By: | Maiko Koga (Bank of Japan); Haruko Kato (Bank of Japan) |
| Abstract: | This paper provides evidence that firms exhibit behavioral biases in their growth expectations. Using firm-level survey data, we document that optimism and pessimism biases are generated by the business cycle, financial market conditions, and firm-specific factors including firms' past experiences. We also demonstrate that biases affect the real business decisions of firms. Firms' fixed investment and R&D spending are raised by optimism and hampered by pessimism. The above findings imply that behavioral biases generated by the firms can be an alternative mechanism on how macroeconomic and financial conditions affect their investment behavior in addition to the traditional optimization mechanism. |
| Keywords: | Behavioral bias, Expectation, Firm, Investment, Optimism bias, Pessimism bias, Survey data |
| JEL: | D84 E03 E22 |
| Date: | 2017–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:boj:bojwps:wp17e09&r=sbm |
| By: | Bin Ni (Faculty of Business Administration,Toyo University); Hayato Kato (Faculty of Economics, Keio University) |
| Abstract: | Developing countries are eager to attract foreign direct investment (FDI) to gain positive technology spillovers for their local firms. However, which type of foreign firm is desirable for a host country looking for beneficial spillovers? At first sight, foreign firms with higher productivity may seem of more benefit by transferring their advanced knowledge; however, their technological and managerial knowledge may be too advanced for local firms to learn. To address this question, we use firm-level panel data from Vietnam to investigate whether foreign Asian investors in downstream sectors affect the productivity of local Vietnamese firms in upstream sectors according to the foreign firms' differing productivity levels. Using the method of endogenous structural breaks, we divide Asian investors into low, middle, and high productivity groups.The results suggest that the middle group has the strongest and most significant positive impact on local suppliers' productivity. |
| Keywords: | Technology spillover, Productivity gap, Firm-level data, Vietnam |
| JEL: | D22 F21 |
| Date: | 2017–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2017-022&r=sbm |
| By: | Gabor Bekes (Institute of Economics Centre for Economic and Regional Studies, Hungarian Academy of Sciences and Central European University and CEPR); Marta Bisztray (Institute of Economics Centre for Economic and Regional Studies, Hungarian Academy of Sciences) |
| Abstract: | A great deal of multinationals receive a bundle of hidden or cash subsidizes upon investing in a foreign country. Policymakers often argue that a subsidy today will help locate friends of the investor later on. Using extensive data on FDI investments, we analyze such patterns. In particular, we investigate if co-location is more frequent among connected firms such as members of business groups as well as firms sharing similar background. Focusing on investments into Central and Eastern European countries we find evidence of co-location pattern of connected firms. |
| Keywords: | Foreign direct investment, agglomeration, location choice, network effects, business groups |
| JEL: | F23 R3 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:1719&r=sbm |
| By: | Mabrouki, Mohamed |
| Abstract: | This study aims to empirically analyze the relationship between patent and economic growth, adopting the VAR approach. Indeed, in order to determine whether, in the context of the Tunisian economy and in the period from 1975 to 2010, the development of technological innovation promotes economic growth , we test an intuition of endogenous growth theory , analyzing the relationship between product growth rate (GDP) and the number of growth rates of patents filed by residents. The results indicate a statistically significant positive effect between patents filed during the previous period (t-1) and current economic growth (t). What reflects the importance of knowledge as being a decisive factor of growth. |
| Keywords: | Patent , Innovation, Growth , VAR , Tunisia |
| JEL: | C1 C22 O31 O4 O47 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80485&r=sbm |