nep-sbm New Economics Papers
on Small Business Management
Issue of 2018‒05‒07
23 papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Age and High-Growth Entrepreneurship By Pierre Azoulay; Benjamin F. Jones; J. Daniel Kim; Javier Miranda
  2. An Anatomy of U.S. Firms Seeking Trademark Registration By Emin M. Dinlersoz; Nathan Goldschlag; Amanda Myers; Nikolas Zolas
  3. Business Cycles and Start-Ups across Industries: An Empirical Analysis of German Regions By Alexander Konon; Michael Fritsch; Alexander S. Kritikos
  4. Growth Dynamics of Young Small Firms: Evidence from Tunisia By Arouri, Hassan; Ben Youssef, Adel; Quatraro, Francesco; Vivarelli, Marco
  5. Strengthening Small and Medium Enterprises by Introducing IoT as Seen in the Model Companies (Japanese) By IWAMOTO Koichi; INOUE Yusuke
  6. The impact of the French policy mix on business R&D : how geography matters By Benjamin Montmartin; Marcos Herrera; Nadine Massard
  7. International Joint Ventures and Internal vs. External Technology Transfer: Evidence from China By Kun Jiang; Wolfgang Keller; Larry D. Qiu; William Ridley
  8. Explaining Growth Differences across Firms: The Interplay between Innovation and Management Practices By Livio Romano
  9. Drivers of growth in Tunisia: Young firms vs incumbents By Arouri, Hassan; Ben Youssef, Adel; Quatraro, Francesco; Vivarelli, Marco
  10. Do Patent Assertion Entities Harm Innovation? Evidence from Patent Transfers in Europe By Gianluca Orsatti; Valerio Sterzi
  11. Japan’s Experience of Creating Innovation for Smart Cities: Implications for Public Policy for Urban Sustainability By Masaru Yarime
  12. Assessing the state of e-Readiness for Small and Medium Companies in Mexico: a Proposed Taxonomy and Adoption Model By Guillermo Rodriguez-Abitia; Susana Vidrio; Claudia Montiel-Sanchez
  13. Knowledge Transfer Abroad: The Role of U.S. Inventors within Global R&D Networks By Lee Branstetter; Britta Glennon; J. Bradford Jensen
  14. The Impact of Artificial Intelligence on Innovation By Iain M. Cockburn; Rebecca Henderson; Scott Stern
  15. Les réseaux économiques collaboratifs, opportunité de développement des villes petites et moyennes. Une analyse en Bretagne By Clément Marinos; Guy Baudelle
  16. The Impact of Immigration on Firm-Level Offshoring By William W. Olney; Dario Pozzoli
  17. The Development of Firm Size and Innovativeness in the Pharmaceutical industry between 1989 and 2010 By Martin Backfisch
  18. Economic success and sustainability in pharmaceutical sector: a case of Indian SMEs By José Niño-Amézquita; Fedor Legotin; Oleg Barbakov
  19. Foreign Direct Investment and Knowledge Diffusion in Poor Locations: Evidence from Ethiopia By Girum Abebe; Margaret S. McMillan; Michel Serafinelli
  20. Campus, technopole, science, technology or research park: a typology study on science parks in Europe By Wei Keat Benny Ng; Rianne Appel-Meulenbroek; Myriam Cloodt; Theo Arentze
  21. New evidence on determinants of IP litigation: A market-based approach By Czarnitzki, Dirk; van Criekingen, Kristof
  22. The effects of educational mismatch on inventor productivity. Evidence from Sweden, 2003-2010 By Igna, Ioana A.
  23. Firm Sorting and Agglomeration By Cecile Gaubert

  1. By: Pierre Azoulay; Benjamin F. Jones; J. Daniel Kim; Javier Miranda
    Abstract: Many observers, and many investors, believe that young people are especially likely to produce the most successful new firms. We use administrative data at the U.S. Census Bureau to study the ages of founders of growth-oriented start-ups in the past decade. Our primary finding is that successful entrepreneurs are middle-aged, not young. The mean founder age for the 1 in 1,000 fastest growing new ventures is 45.0. The findings are broadly similar when considering high-technology sectors, entrepreneurial hubs, and successful firm exits. Prior experience in the specific industry predicts much greater rates of entrepreneurial success. These findings strongly reject common hypotheses that emphasize youth as a key trait of successful entrepreneurs.
    Date: 2018–04
  2. By: Emin M. Dinlersoz; Nathan Goldschlag; Amanda Myers; Nikolas Zolas
    Abstract: This paper reports on the construction of a new dataset that combines data on trademark applications and registrations from the U.S. Patent and Trademark Office with data on firms from the U.S. Census Bureau. The resulting dataset allows tracking of various activity related to trademark use and protection over the life-cycle of firms, such as the first application for a trademark registration, the first use of a trademark, and the renewal, assignment, and cancellation of trademark registrations. Facts about firm-level trademark activity are documented, including the incidence and timing of trademark registration filings over the firm life-cycle and the connection between firm characteristics and trademark applications. We also explore the relation of trademark application filing to firm employment and revenue growth, and to firm innovative activity as measured by R&D and patents.
    Date: 2018–04
  3. By: Alexander Konon; Michael Fritsch; Alexander S. Kritikos
    Abstract: We analyze whether start-up rates in different industries systematically change with business cycle variables. Using a unique data set at the industry level, we mostly find correlations that are consistent with counter-cyclical influences of the business cycle on entries in both innovative and non-innovative industries. Entries into the largescale industries, including the innovative part of manufacturing, are only influenced by changes in the cyclical component of unemployment, while entries into small-scale industries, like knowledge intensive services, are mostly influenced by changes in the cyclical component of GDP. Thus, our analysis suggests that favorable conditions in terms of high GDP might not be germane for start-ups. Given that both innovative and non-innovative businesses react counter-cyclically in ‘regular’ recessions, business formation may have a stabilizing effect on the economy.
    Keywords: New business formation, entrepreneurship, business cycle, manufacturing, services, innovative industries
    JEL: E32 L16 L26 R11
    Date: 2018
  4. By: Arouri, Hassan; Ben Youssef, Adel; Quatraro, Francesco; Vivarelli, Marco
    Abstract: The aim of this paper is to investigate the growth dynamics of young small firms (in contrast with larger and older incumbents) in a developing country context, using a unique and comprehensive dataset of non-agricultural Tunisian companies. Our results suggest that significant differences between young and mature firms can be found as far as the drivers of their growth are concerned. The key finding being that - while consistently with the extant literature Gibrat’s law is overall rejected - the negative impact of the initial size is significantly larger for young than mature firms. This result has interesting policy implications: since smaller young firms are particularly conducive to employment generation, they can be considered good candidate for targeted accompanying policies addressed to sustain their post-entry growth.
    Keywords: firm’s growth,young firms,Gibrat’s law,Tunisia
    JEL: O12 L26
    Date: 2018
  5. By: IWAMOTO Koichi; INOUE Yusuke
    Abstract: This paper describes the results of a study group which I held in 2017 to look at the development of small and medium enterprises (SME) competitiveness using the Internet of Things (IoT) in 2016 and of related research. In Japan, it is rare to find complete IoT systems introduced in the production process of SMEs. The simple reason is that SME managers do not understand IoT, which can have two interpretations. The first one is the managers do not understand the complex technology. The second one is they do not understand the merits of the technology for their own companies. The study group adopted four SMEs as model cases, and fully conducted a trial and error process from the beginning of discussions to the introduction of IoT, which aims to have all SME managers consider this issue as their own matter. The discussions of the study group focused on the SMEs' production process in 2016, and focused on the production service companies in 2017. Also, some local governments will start support the introduction of IoT to SME in 2018 in the same manner.
    Date: 2018–04
  6. By: Benjamin Montmartin (Observatoire français des conjonctures économiques); Marcos Herrera (National University of Salta (Argentine) (CONICET)); Nadine Massard (Université Grenoble Alpes (UGA))
    Abstract: Based on a spatial extension of an R&D investment model, this paper measures the macroeconomic impact of the French R&D policy mix on business R&D using regional data. Our measure takes into account not only the direct effect of policies but also indirect effects generated by the existence of spatial interaction between regions. Using a unique database containing information on the levels of various R&D policy instruments received by firms in French NUTS3 regions over the period 2001-2011, our estimates of a spatial Durbin model with structural breaks and fixed effects reveal the existence of a negative spatial dependence among R&D investments in regions. In this context, while a-spatial estimates would conclude that all instruments have a crowding-in effect, we show that national subsidies are the only instrument that is able to generate significant crowding-in effects. On the contrary, it seems that the design, size and spatial allocation of funds from the other instruments (tax credits, local subsidies, European subsidies) lead them to act (in the French context) as beggar-thy-neighbor policies.
    Keywords: Policy mix evaluation; R&D investment; Spatial panel; French Nuts3 regions
    JEL: H25 O31 O38
    Date: 2018–03
  7. By: Kun Jiang; Wolfgang Keller; Larry D. Qiu; William Ridley
    Abstract: This paper studies international joint ventures, where foreign direct investment is performed by a foreign and a domestic firm that together set up a new firm, the joint venture. Employing administrative data on all international joint ventures in China from 1998 to 2007—roughly a quarter of all international joint ventures in the world—we find, first, that Chinese firms chosen to be partners of foreign investors tend to be larger, more productive, and more likely subsidized than other Chinese firms. Second, there is substantial technology transfer both to the joint venture and to the Chinese joint venture partner, an external, intergenerational technology transfer effect that this paper introduces. Third, with technology spillovers typically outweighing negative competition effects, joint ventures generate on net positive externalities to other Chinese firms in the same industry. Joint venture externalities are large, perhaps twice the size of wholly-owned FDI spillovers, and it is R&D-intensive firms, including the joint ventures themselves, that benefit most from these externalities. Furthermore, the positive external joint venture effect is larger if the foreign firm is from the U.S. rather than from Japan or Hong Kong, Macau, and Taiwan, while this effect is virtually absent in broad sectors that include economic activities for which China’s FDI policy has prohibited joint ventures.
    JEL: F23 O31 O34
    Date: 2018–03
  8. By: Livio Romano (Centro Studi Confindustria, Italy)
    Abstract: This paper provides first empirical evidence of the joint effects that innovation strategies and human resource management practices exert on firm growth. By exploiting unique information from a large sample of Italian manufacturing companies in the very recent years, it shows that investing in technology and implementing performance-based pay policies are both positively associated with a significant turnover, employment and labor productivity growth premium. However, their joint adoption does not necessarily sum the two effects. In particular, performance-based rewards boost growth of non-innovators and of firms pursuing relatively simple innovation strategies, centered around the acquisition of embodied technology. For firms strongly relying on R&D as an additional lever for product and process upgrading, the estimated effect of having in place monetary incentive mechanisms is null or even negative.
    Keywords: Heterogeneity, Innovation, Management Practices, Firm Growth
    Date: 2018–04
  9. By: Arouri, Hassan (National Institute of Statistics, Tunisia); Ben Youssef, Adel (University of Nice Sophia-Antipolis, and GREDEG-CNRS); Quatraro, Francesco (University of Torino, and Collegio Carlo Alberto); Vivarelli, Marco (UNU-MERIT, and Universita’ Cattolica del Sacro Cuore, Milano)
    Abstract: The aim of this paper is to investigate the growth dynamics of young small firms (in contrast with larger and older incumbents) in a developing country context, using a unique and comprehensive dataset of non-agricultural Tunisian companies. Our results suggest that significant differences between young and mature firms can be found as far as the drivers of their growth are concerned. The key finding being that - while consistently with the extant literature Gibrat's law is overall rejected - the negative impact of the initial size is significantly larger for young than mature firms. This result has interesting policy implications: since smaller young firms are particularly conducive to employment generation, they can be considered good candidates for targeted accompanying policies addressed to sustain their post-entry growth.
    Keywords: firm's growth, young firms, Gibrat's law, Tunisia
    JEL: O12 L26
    Date: 2018–04–06
  10. By: Gianluca Orsatti; Valerio Sterzi
    Abstract: The recent upsurge of patent litigation cases initiated by patent assertion entities (PAEs) in the U.S. has led to an intense debate about their effect on innovation performances and on the IP system functioning. We contribute to this debate by providing original evidence based on the patenting activity of PAEs in Europe, a region where the patent assertion landscape is growing rapidly and the imminent introduction of the Unified Patent Court and the Unitary Patent will upset the current schemes. Relying on EPO (European Patent Office) data on patent transfers and patent citations, our results show that PAEs acquire patents with high average technological quality. They may thus increase liquidity in the patent market and enhance its efficiency. However, after a transfer occurs, patents transferred to PAEs receive significantly fewer citations. This suggests that producing companies whose business makes their technologies close to the ones acquired by PAEs may perceive an augmented risk of being sued. As a consequence, they reduce their innovative effort in fields populated by PAEs and this reflects into lower citations flowing towards PAEs’ acquired patents. These results are robust to different measures of citations considered and to different econometric techniques.
    Keywords: Market for technology; Patent assertion entities; Patent trolls; Patent intermediaries; Patent citations; Innovation.
    JEL: O31 O34
    Date: 2018
  11. By: Masaru Yarime
    Abstract: In our efforts to promote an urban sustainability, the transformation to smart cities will play a significant role. As smart cities are based on advanced systems of hardware and software—covering various types of products and services relevant to urban functions— innovation for smart cities requires a significant degree of diversity in knowledge, actors, and institutions. Hence it is important to understand the characteristics of the innovation system in smart cities and to introduce policies that will promote forms of innovation that incorporate local conditions and contexts. In this paper, the innovation system of smart cities in Japan is examined to consider implications for public policies and institutional design. The analysis reveals a concentrated structure dominated by large actors, particularly in the public sector and the electric (power generation and distribution) and electronics (appliance and equipment) industries, with knowledge and technological domains concerning renewable energy, energy storage, community energy management, and applications for home appliances and electric vehicles. Policies and regulations influencing the innovation system of smart cities include economic incentives to promote renewable energy technologies, liberalization of energy markets for new entrants, participatory processes of road-mapping on key technologies, localization of demonstration projects reflecting specificities, standard setting for component technologies, and platform creation for stakeholder partnerships including academia, industry, government, and civil society. A key implication for public policy is to facilitate communication and engagement with end users in jointly creating innovation for smart cities.
    Keywords: smart city, innovation system, network analysis, stakeholder collaboration, Japan
    Date: 2018–03
  12. By: Guillermo Rodriguez-Abitia; Susana Vidrio; Claudia Montiel-Sanchez
    Abstract: Emerging economies frequently show a large component of their Gross Domestic Product to be dependant on the economic activity of small and medium enterprises. Nevertheless, e-business solutions are more likely designed for large companies. SMEs seem to follow a classical family-based management, used to traditional activities, rather than seeking new ways of adding value to their business strategy. Thus, a large portion of a nations economy may be at disadvantage for competition. This paper aims at assessing the state of e-business readiness of Mexican SMEs based on already published e-business evolution models and by means of a survey research design. Data is being collected in three cities with differing sizes and infrastructure conditions. Statistical results are expected to be presented. A second part of this research aims at applying classical adoption models to suggest potential causal relationships, as well as more suitable recommendations for development.
    Date: 2018–03
  13. By: Lee Branstetter; Britta Glennon; J. Bradford Jensen
    Abstract: The location of US multinational foreign R&D has shifted significantly to include emerging markets in addition to traditional Western R&D hubs, resulting in two challenges for multinationals: (1) how to transfer knowledge across geographic distances, and (2) how to facilitate learning when local knowledge sources in given technological areas are inadequate. This paper argues that to overcome these challenges, multinationals utilize home country inventors on foreign affiliate inventor teams – and in particular on teams in locations with insufficiently specialized local knowledge stocks – to facilitate knowledge transfer. Empirical analysis of a comprehensive dataset of US multinational R&D and patenting activity provides robust support for this argument. The findings have important implications for understanding how countries can gain expertise in technical areas and how poor countries can escape the knowledge trap, and they provide insight into management of increasingly dispersed multinational global R&D networks, particularly in locations with relatively unspecialized local inventors.
    JEL: O31 O32 O57
    Date: 2018–03
  14. By: Iain M. Cockburn; Rebecca Henderson; Scott Stern
    Abstract: Artificial intelligence may greatly increase the efficiency of the existing economy. But it may have an even larger impact by serving as a new general-purpose “method of invention” that can reshape the nature of the innovation process and the organization of R&D. We distinguish between automation-oriented applications such as robotics and the potential for recent developments in “deep learning” to serve as a general-purpose method of invention, finding strong evidence of a “shift” in the importance of application-oriented learning research since 2009. We suggest that this is likely to lead to a significant substitution away from more routinized labor-intensive research towards research that takes advantage of the interplay between passively generated large datasets and enhanced prediction algorithms. At the same time, the potential commercial rewards from mastering this mode of research are likely to usher in a period of racing, driven by powerful incentives for individual companies to acquire and control critical large datasets and application-specific algorithms. We suggest that policies which encourage transparency and sharing of core datasets across both public and private actors may be critical tools for stimulating research productivity and innovation-oriented competition going forward.
    JEL: L1
    Date: 2018–03
  15. By: Clément Marinos (MARSOUIN - Môle Armoricain de Recherche sur la SOciété de l'information et des usages d'INternet - UR1 - Université de Rennes 1 - UBS - Université de Bretagne Sud - UBO - Université de Brest - Ecole Nationale de la Statistique et de Analyse de l'Information - Rennes - Institut Mines-Télécom [Paris] - UR2 - Université de Rennes 2 - UNIV-RENNES - Université de Rennes - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire, LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - Institut Mines-Télécom [Paris] - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire); Guy Baudelle (ESO - Espaces Géographiques et Sociétés - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UM - Le Mans Université - UA - Université d'Angers - UN - Université de Nantes - UR2 - Université de Rennes 2 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Les réseaux économiques collaboratifs, opportunité de développement des villes petites et moyennes. Une analyse en Bretagne Contexte Les réseaux économiques collaboratifs sont de plus en plus mobilisés par les entrepreneurs pour nouer des relations d'affaires et de confiance. Ces réseaux se développent dans tous les territoires, y compris hors métropole. Ils prennent la forme classique de clubs d'entreprises et celle, plus nouvelle, d'espaces collaboratifs de travail (i.e. coworking). Nombreuses sont désormais les villes moyennes et petites disposant d'un réseau d'entrepreneurs tandis que le nombre d'espaces de coworking, estimé à 600 en France 1 , a été multiplié par cinq entre 2012 et 2017. En tant que parties prenantes de l'écosystème local, ces deux types de structures participent au développement économique de leur territoire, notamment à travers les mises en relation d'acteurs privés et la circulation d'informations qu'ils génèrent. Problématique La communication abordera deux questions liées l'une à l'autre. La première interrogation porte sur la façon dont clubs d'entreprises et espaces collaboratifs de travail sont susceptibles de contribuer, chacun à leur manière, aux dynamiques économiques locales dans les villes petites et moyennes. Cette question renvoie aux modalités d'organisation de ces structures de mise en réseau. Existe-il un modèle de bonne gouvernance pour les uns et les autres (Ehlinger et al., 2015) ? Le second questionnement porte en conséquence sur le soutien des décideurs publics locaux en direction de ces structures économiques. L'austérité budgétaire conduit les collectivités territoriales (Gilles, 2012) à concevoir des leviers de développement innovants (Lévesques et al., 2005), moins coûteux et plus efficaces que les habituels programmes d'infrastructures ou les aides au tissu économique. Des incitations à la collaboration existent au niveau régional et national, notamment à travers les pôles de compétitivité, tandis que les politiques aux échelles infrarégionales restent embryonnaires, hésitantes et moins connues. Derrière les partenariats et les contractualisations qui émergent, on perçoit bien l'enjeu pour les territoires d'intégrer dans leur stratégie de développement les externalités positives liées à la collaboration entre acteurs à l'échelle (micro)locale. Ces deux questions renvoient donc aux liens entre acteurs publics (collectivités et agences de développement) et privés (clubs et espaces de travail collaboratif). La communication s'interrogera donc sur le rôle que pourrait (devrait ?) jouer l'action publique en faveur de ces services rendus aux dirigeants d'entreprises, aux entrepreneurs et aux travailleurs indépendants à partir de l'étude d'une trentaine de réseaux d'entrepreneurs et d'espaces collaboratifs localisés en Bretagne. Cadre théorique Le cadre d'analyse mobilise plusieurs champs complémentaires. Il fait principalement appel à la sociologie des réseaux appliquée à la sphère économique qui montre que l'encastrement des entrepreneurs dans des réseaux sociaux est nécessaire à leur succès (Granovetter, 2006 ; Krauss, 2009 ; Baudelle et al., 2017). La communication s'inscrit également dans une perspective proximiste (Torre, 2009 ; Bouba-Olga et Grossetti, 2008) appliquée en particulier à un contexte d'espaces à faible centralité. En effet, les réseaux dont il sera question opèrent des rapprochements entre entreprises et génèrent en ce sens de la proximité organisationnelle (Angeon, 2008). Enfin, l'économie de l'innovation sera mobilisée pour montrer que, d'un point de vue territorial, il s'agit de lieux à la croisée du global pipeline et du local buzz (Bathelt, 2011). A ce titre, ils assument un rôle d'interface entre écosystème local et économie globale en permettant à leurs membres d'acquérir des ressources au-delà de leurs sphères sociales et géographiques initiales. Cette approche micro-globale permet donc de montrer que ces réseaux constituent une opportunité pour des villes petites et moyennes considérées comme socialement et économiquement moins connectées que les métropoles.
    Date: 2018–03–22
  16. By: William W. Olney (Williams College); Dario Pozzoli (Copenhagen Business School and the Tuborg Centre for Globalization and Firms)
    Abstract: This paper studies the relationship between immigration and offshoring by examining whether an influx of foreign workers reduces the need for firms to relocate jobs abroad. We exploit a Danish quasi-natural experiment in which immigrants were randomly allocated to municipalities using a refugee dispersal policy and we use the Danish employer-employee matched data set covering the universe of workers and firms over the period 1995-2011. Our findings show that an exogenous influx of immigrants into a municipality reduces firm-level offshoring at both the extensive and intensive margins. The fact that immigration and offshoring are substitutes has important policy implications, since restrictions on one may encourage the other. While the multilateral relationship is negative, a subsequent bilateral analysis shows that immigrants have connections in their country of origin that increase the likelihood that firms offshore to that particular foreign country.
    Keywords: Immigration, Offshoring
    JEL: F22 F16 J61 F23
    Date: 2018–04
  17. By: Martin Backfisch (DHBW CAS)
    Abstract: Within the last decades, there have been many technological and regulatory changes in the pharmaceutical industry. Some of these developments facilitate the innovative activities of large firms, while others foster small firms. It is therefore surprising that the implications of these changes in the pharmaceutical industry have not often been studied empirically. We contribute to the question of firm size and innovativeness in the pharmaceutical industry in presenting a brief review of the literature on innovative activities with a focus on the relation of different firm sizes in the pharmaceutical industry and present own empirical findings. Our results with project data from a broad range of firms show that the innovative activities of small firms measured by the share of their projects on all research projects have been rising strongly between 1989 and 2010. Further, the share of small firms on new drugs has been constantly increasing in this period. On the other hand, project success rates are lowest for small firms, while the rate of projects already discontinued in the preclinical phase is highest for them. We discuss these results and find that the reasons behind these developments are crucial to understand the innovative performance of the industry within the last 20 years.
    Keywords: pharmaceutical R&D; drug development; success rates; firm size
    JEL: O32 L65
    Date: 2018
  18. By: José Niño-Amézquita (Regional Center for Productivity and Innovation of Boyaca); Fedor Legotin (Ural State University of Economics); Oleg Barbakov (Tyumen Industrial University)
    Abstract: Our paper examines one of the key aspects of the organizational economics – the factors of economic success and sustainability of the pharmaceutical small and medium enterprises (SMEs) in India. Indian pharmaceutical industry is known for its high fragmentation and weak generic based R&D initiatives. The study uses inflation adjusted cross section data for 20 SMEs in the year 2013-2014 and applies OLS regression model with robust standard errors. It has found that exports, R&D expenditure, and previous year profits have exercised positive impact on SMEs' growth. The negative, yet statistically significant influence of advertising and marketing expenditure highlights the need to rethink about strategic management policies of SMEs. Our results suggest that SMEs are required to pay more attention towards the global market expansion and value creation through R&D investment, as a part of their long-term growth and survival strategy.
    Keywords: R&D,economic success,sustainability,pharmaceutical industry,economic growth
    Date: 2017–09–29
  19. By: Girum Abebe; Margaret S. McMillan; Michel Serafinelli
    Abstract: We quantify foreign direct investment (FDI) spillovers by comparing changes in total factor productivity (TFP) among domestic plants in districts that attracted a large greenfield foreign plant and districts where greenfield FDI was licensed but not yet operational. Treated and untreated districts have similar trends in TFP prior to the opening of the large greenfield foreign plant. Over the four years starting with the year of the opening, TFP of domestic plants is 8% higher in treated districts. Using an alternative identification strategy that exploits the assignment of land for FDI by the Ethiopian Government, we obtain similar results. Foreign plants also attract new economic activity to treated districts. Exposure to foreign firms enhances domestic firms’: (i) production processes; (ii) managerial and organizational practices; (iii) logistics and; (iv) knowledge about exporting. Knowledge transfer is more likely among labor or vertically linked firms but also occurs outside these channels.
    JEL: D24 F21 R10
    Date: 2018–03
  20. By: Wei Keat Benny Ng; Rianne Appel-Meulenbroek; Myriam Cloodt; Theo Arentze
    Abstract: Although science parks are established globally for decades, still limited attention is paid towards research into possible typologies within these real estate concepts. Science parks are believed to enhance, among others, innovative output, entrepreneurship, and economic value for firms and regions. Past academic research shows mixed results on these performances and suggests that the lack of clear results is due to not taking into account the wide variety of of types of science parks that exist in reality. Prior attempts in categorizing science parks are characterized by the limited number of cases and variables. Therefore the present study serves to fill this gap in the literature by developing a more comprehensive analysis of science park typologies. A large-scale survey on science park characteristics is distributed among all known science park managers/owners in Europe in order to collect data on both physical and non-physical science parks features. The selected variables of science park features are based on prior academic research. The total list of science parks is compiled through a number of sources including desk research (case studies reported in the literature), member lists of science park associations and other registers. A cluster analysis is conducted to group the different science parks into types with clearer differences. The typologies of science parks, derived in this way from data, provide a further understanding of science parks in general and offers researchers and practitioners a means to compare, market, and benchmark science parks more adequately.
    Keywords: Campuses; Cluster Analysis; science parks; technology parks; Typology
    JEL: R3
    Date: 2017–07–01
  21. By: Czarnitzki, Dirk; van Criekingen, Kristof
    Abstract: We contribute to the economic literature on patent litigation by taking a new perspective. In the past, scholars mostly focused on specific litigation cases at the patent level and related technological characteristics to the event of litigation. However, observing IP disputes suggests that not only technological characteristics may trigger litigation suits, but also the market positions of firms, and that firms dispute not only about single patents but often about portfolios. Consequently, this paper examines the occurrence of IP litigation cases in Belgian firms using the 2013 Community Innovation Survey with supplemental information on IP litigation and patent portfolios. The rich survey information regarding firms' general innovation strategies enables us to introduce market-related variables such as sales with new products as well as sales based mainly on imitation and incremental innovation. Our results indicate that when controlling for firms' IP portfolio, the composition of turnover in terms of innovations and imitations has additional explanatory power regarding litigation propensities. Firms with a high turnover from innovations are more likely to become plaintiffs in court. Contrastingly, firms with a high turnover from incremental innovation and imitation are more likely to become defendants in court, and, moreover, are more likely to negotiate settlements outside of court.
    Keywords: IP litigation,patenting,innovation,imitation
    JEL: O31 O34
    Date: 2018
  22. By: Igna, Ioana A. (Department of Economics, University of Perugia)
    Abstract: This paper investigates the influence on inventor productivity of the imperfect occupational match, measured as the number of years of education in excess and in deficit to the required level (educational mismatch). The empirical model draws on a unique database that matches information about individual inventor characteristics, such as age, experience and gender, with patenting performance in Sweden over the period 2003-2010. The results suggest that over-educated (OE) inventors file a number of patents higher than inventors who are appropriately matched (RE), but perform poorly than well-matched inventors who hold a similar level of education. Conversely, under-educated (UE) inventors file a total number of patents lower than inventors who are well-matched (RE), but more than well-matched ones who hold the same level of education. These results conform to the hierarchical pattern of ORU model, well-documented in the literature relating the employees’ wages to educational mismatch (i.e. RE>OE>UE). We find that significant differences in returns to education across match and mismatch categories remain even after controlling for individual ability. Our findings are robust to controlling for differences between younger and older inventors, geographical areas and industry of work.
    Keywords: Inventor; Productivity; Educational mismatch; Patent
    JEL: J24
    Date: 2018–04–27
  23. By: Cecile Gaubert
    Abstract: The distribution of firms in space is far from uniform. Some locations host the most productive large firms, while others barely attract any. In this paper, I study the sorting of heterogeneous firms across locations and analyze policies designed to attract firms to particular regions (place-based policies). I first propose a theory of the distribution of heterogeneous firms in a variety of sectors across cities. Aggregate TFP and welfare depend on the extent of agglomeration externalities produced in cities and on how heterogeneous firms sort across them. The distribution of city sizes and the sorting patterns of firms are uniquely determined in equilibrium. This allows me to structurally estimate the model, using French firm-level data. I find that nearly half of the observed productivity advantage of large cities is due to firm sorting. I use the estimated model to quantify the general equilibrium effects of place-based policies. I find that policies that decrease local congestion lead to a new spatial equilibrium with higher aggregate TFP and welfare. In contrast, policies that subsidize under-developed areas have negative aggregate effects.
    JEL: F11 R10 R30
    Date: 2018–04

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