nep-sbm New Economics Papers
on Small Business Management
Issue of 2019‒01‒28
twenty-one papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Concordance and complementarity in Intellectual Property instruments By M. Grazzi; C. Piccardo; C. Vergari
  2. Identifying cooperation for innovation: A comparison of data sources By Fritsch, Michael; Piontek, Matthias; Titze, Mirko
  3. International Knowledge Spillovers By Johannes Eugster; Giang Ho; Florence Jaumotte; Roberto Piazza
  4. The Micro Impact of Macroprudential Policies: Firm-Level Evidence By Meghana Ayyagari; Thorsten Beck; Maria Soledad Martinez Peria
  5. The Effect of Responsive and Proactive Market Orientation on Product Innovation and Company Performance: A Case Study on MSMEs in the Culinary Field in D.I. Yogyakarta By Ichwan, A’bdul Fatach; Nursyamsiah, Siti
  6. The effect of intellectual property boxes on innovative activity & effective tax rates By Bornemann, Tobias; Laplante, Stacie K.; Osswald, Benjamin
  7. Nowhere Else to Go: The Determinants of Bank-Firm Relationship Discontinuations after Bank Mergers By Oliver Rehbein; Santiago Carbo-Valverde
  8. Platform Competition: Who Benefits from Multihoming? By Dana Kassem
  9. Les externalités de la R&D et la capacité d’innovation : implications sur données camerounaises pour une politique de promotion d’innovation By Pilag Kakeu, Charles Bertin; Miamo Wendji, Clovis
  10. Financial Systems and Private Innovation Activity. A Research for OECD Countries By Alberto Mendez-Morales; Carlos Yanes-Guerra
  11. The landscape of corporate venturing in Germany: Insights on corporate venture capitals and corporate accelerators By Haslanger, Patrick
  12. Advancing the Innovation Radar - Enhancing Innovation Radar data with financial, patent and Venture Capital data By Vincent Van Roy; Tom Magerman; Daniel Nepelski
  13. Knowledge Remittances: Does Emigration Foster Innovation? By Thomas Fackler; Yvonne Giesing; Nadzeya Laurentsyeva
  14. Immigration and new firm formation: Evidence from a quasi-experimental setting in Germany By Jahn, Vera; Steinhardt, Max Friedrich
  15. Firm-level Drivers of Export Performance and External Competitiveness in Italy By Emanuele Brancati; Raffaele Brancati; Dario Guarascio; Andrea Maresca; Manuel Romagnoli; Antonello Zanfei
  16. Who Creates Stable Jobs? Evidence from Brazil By Brummund, Peter; Connolly, Laura
  17. Migrants and Firms: Evidence from China By Clement Imbert; Marlon Seror; Yifan Zhang; Yanos Zylberberg
  18. Internationalization of African SMEs: Context, Trends and Challenges By Hamza El Guili
  19. A Survey of Empirical Evidence on Patents and Innovation By Bhaven N. Sampat
  20. Post-Entry Performance of International New Ventures: The Mediating Role of Learning Orientation By Stephan Gerschewski; Yong Kyu Lew; Zaheer Khan; Byung Il Park
  21. The Rise and Fall of Family Firms in the Process of Development By Maria Rosaria Carillo; Vincenzo Lombardo; Alberto Zazzaro

  1. By: M. Grazzi; C. Piccardo; C. Vergari
    Abstract: This work investigates the relationship between proxies of innovation activities, such as patents and trademarks, and firm performance in terms of revenues and growth. By resorting to the virtual universe of Italian manufacturing firms we provide a rather complete picture of the innovation activities of Italian firms, in terms of patents and trademarks, and we study whether the two instruments for protecting Intellectual Property (IP) exhibit complementarity or substitutability. In addition, and to our knowledge novel, we propose a measure of concordance (or proximity) between the patents and trademarks owned by the same firm and we then investigate whether such concordance appears to exert any effect on performance.
    JEL: O31 O34 L25
    Date: 2019–01
  2. By: Fritsch, Michael; Piontek, Matthias; Titze, Mirko
    Abstract: The value of social network analysis is critically dependent on the comprehensive and reliable identification of actors and their relationships. We compare regional knowledge networks based on different types of data sources, namely, co-patents, co-publications, and publicly subsidised collaborative Research and Development projects. Moreover, by combining these three data sources, we construct a multilayer network that provides a comprehensive picture of intraregional interactions. By comparing the networks based on the data sources, we address the problems of coverage and selection bias. We observe that using only one data source leads to a severe underestimation of regional knowledge interactions, especially those of private sector firms and independent researchers. The key role of universities that connect many regional actors is identified in all three types of data.
    Keywords: knowledge interactions,social network analysis,regional innovation systems,data sources
    JEL: O30 R12 R30
    Date: 2019
  3. By: Johannes Eugster; Giang Ho; Florence Jaumotte; Roberto Piazza
    Abstract: How important is foreign knowledge for domestic innovation outcomes? How is this relation shaped by globalization and the attendant intensification of international competition? Our empirical approach extends the previous literature by analyzing a large panel comprising industries in both advanced and emerging economies over the past two decades. We find that barriers to the domestic diffusion of foreign knowledge have fallen significantly for emerging economies. For all countries, and especially for emerging economies, inflows of foreign knowledge have a growing and quantitatively important impact on domestic innovation. Controlling for the amount of domestic R&D, we find evidence that increases in international competitive pressure at the industry level had a positive effect on domestic innovation outcomes
    Date: 2018–12–10
  4. By: Meghana Ayyagari; Thorsten Beck; Maria Soledad Martinez Peria
    Abstract: Combining balance sheet data on 900,000 firms from 48 countries with information on the adoption of macroprudential policies during 2003-2011, we find that these policies are associated with lower credit growth. These effects are especially significant for micro, small and medium enterprises (MSMEs) and young firms that, according to the literature, are more financially constrained and bank dependent. Among MSMEs and young firms, those with weaker balance sheets exhibit lower credit growth in conjunction with the adoption of macroprudential policies, suggesting that these policies can enhance financial stability. Finally, our results show that macroprudential policies have real effects, as they are associated with lower investment and sales growth.
    Keywords: Macroprudential policies and financial stability;Balance sheets;Public enterprises;financial development; macroprudential policies; firm financing
    Date: 2018–12–07
  5. By: Ichwan, A’bdul Fatach; Nursyamsiah, Siti
    Abstract: This study aims to determine the effect of Responsive and Proactive Market Orientation on Product Innovation and Company Performance. The population in this study is the Micro, Small, and Medium Enterprise (MSME) in the Culinary Division at D.I. Yogyakarta and use 200 respondents as a sample. By using convenience sampling technique, the researchers have the freedom to choose any culinary MSME found around D.I. Yogyakarta to be the respondent. Hypothesis testing using Structural Equation Model (SEM) analysis. The findings show that there is a positive influence of responsive market orientation on product innovation performance, proactive market orientation on product innovation performance, product innovation performance on the company's market performance, and the company's market performance on the company's financial performance. The findings of this study contribute to MSMEs that information about market orientation adopted by business actors or companies can affect the performance of new product innovations in the market to improve the company's market performance which then affects the company's financial performance.
    Keywords: responsive market orientation; proactive market orientation; product innovation; company performance
    JEL: A11 D13
    Date: 2019–01–05
  6. By: Bornemann, Tobias; Laplante, Stacie K.; Osswald, Benjamin
    Abstract: We investigate whether the adoption of an intellectual property box increases innovative activity and what type of firms benefit. We examine the adoption of the intellectual property box in Belgium because it allows us to cleanly identify the impact on innovative activity and effective tax rates. Our results indicate an overall increase in innovative activity as proxied by patent grants, the efficiency with which firms apply for and receive patents, and employment. We also provide evidence that, while firms with patents on average enjoy lower effective tax rates, the greatest financial benefits accrue to multinational firms without income shifting opportunities, followed by domestic firms. Multinational firms with income shifting opportunities do not significantly benefit from the intellectual property box.
    Keywords: IP boxes,tax incentive,tax avoidance,income shifting
    JEL: H21 H25
    Date: 2018
  7. By: Oliver Rehbein; Santiago Carbo-Valverde
    Abstract: The decision to change or terminate a bank-firm relationship has been demonstrated to be crucial for firm performance following bank mergers. We find both competition and the available firm collateral to be important factors in enabling firms to switching banks, instead of dropping their bank relationships. We also provide novel evidence that firms who are able to \textit{add} a bank relationship following a merger exhibit much stronger post-merger performance. Our findings are consistent with the interpretation that bank-mergers cause a reduction in lending to most firms, leading them to search for alternative sources of finance.
    Keywords: bank mergers, relationship banking, competition
    JEL: G21 G34
    Date: 2018–09
  8. By: Dana Kassem
    Abstract: I ask whether electrification causes industrial development. I combine newly digitized data from the Indonesian state electricity company with rich manufacturing census data. To understand when and how electrification can cause industrial development, I shed light on an important economic mechanism - firm turnover. In particular, I study the effect of the extensive margin of electrification (grid expansion) on the extensive margin of industrial development (firm entry and exit). To deal with endogenous grid placement, I build a hypothetical electric transmission grid based on colonial incumbent infrastructure and geographic cost factors. I find that electrification causes industrial development, represented by an increase in the number of manufacturing firms, manufacturing workers, and manufacturing output. Electrification increases firm entry rates, but also exit rates. Empirical tests show that electrification creates new industrial activity, as opposed to only reorganizing industrial activity across space. Higher turnover rates lead to higher average productivity and induce reallocation towards more productive firms in electrified areas. This is consistent with electrification lowering entry costs, increasing competition and forcing unproductive firms to exit more often. Without the possibility of entry or competitive effects of entry, the effects of electrification are likely to be smaller.
    JEL: D24 L60 O13 O14 Q41
    Date: 2018–11
  9. By: Pilag Kakeu, Charles Bertin; Miamo Wendji, Clovis
    Abstract: This article seeks to analyze the R&D externalities effect on innovation effort. The data analyzed based on a sample of 640 enterprises located in Douala, Yaoundé and Bafoussam. The method of estimation is a probit with selection based on the framework proposed by Heckman (1979). The first equation explains the cooperation in R&D and the second shows the innovation effort of enterprises. The empirical analysis focused on the unobserved heterogeneity of externalities. Our results reveals the existence of unobserved elements, due to cooperation between the firms, which reinforce their innovation effort. Our results reveals that cooperation can be a vector of positive externalities that reinforce their innovation effort. Moreover, our results tend to show the importance of the social returns of R&D in the innovation process. These results question the relevance of current innovation policies, mainly focused on the promotion of private R&D. Thus, innovation promotion policies should be oriented towards open innovation and intensified innovation cooperation.
    Keywords: Innovation, Open innovation, R&D, cooperation, externality.
    JEL: O3 O32 O33 O38
    Date: 2019–01–10
  10. By: Alberto Mendez-Morales (Universidad Militar Nueva Granada); Carlos Yanes-Guerra (Universidad Militar Nueva Granada)
    Abstract: This research shows the effect that financial markets development has on R and D private investment of OECD countries. The main porpoise of this research is to help policy makers to generate effective policies to spur innovation, especially in underdeveloped countries. Data used on this research comes from World Bank and Unesco for the period 2000-2016. Used methodology is a dynamic panel data in which macroeconomic, financial, innovation and structural variables are included. It was found that stock markets development is positively related with private expenditure on R and D, but bond markets are negatively related with it. Simultaneously, low inflation and stable exchange rates are positively related with R and D. This is a novel research given that we show that an effective innovation policy for private firms, should be accompanied of policies aimed to deepening financial markets as a way to spur investments on R and D.
    Keywords: Financial systems, stock markets, credit markets, R and D, innovation
    Date: 2018–11
  11. By: Haslanger, Patrick
    Abstract: This paper adds to the literature of external corporate venturing, especially corporate venture capitals (CVCs) and corporate accelerators (CAs) by providing an overview of the German corporate venturing market and by offering first intriguing findings based on a novel and unique hand-collected dataset. It presents insights regarding the set-up, organization and staffing of corporate venturing units, as well as characteristics of start-ups under management. This study distinguishes between the corporate venturing unit's mission, organization, governance and network as well as vehicle leads. Moreover, differences in the characteristics of start-ups supported by corporate venturing units are detected. This work offers unique insights on the German corporate venturing landscape and thereby serves as starting point for future and more elaborate research.
    Keywords: corporate venturing,entrepreneurship,corporate venture capital (CVC),corporate accelerator (CA),Germany
    JEL: G24 L26 M13 O3
    Date: 2019
  12. By: Vincent Van Roy (European Commission - JRC); Tom Magerman (Xinfor – Scientific Information Systems); Daniel Nepelski (European Commission - JRC)
    Abstract: The Innovation Radar (IR) is a European Commission (EC) initiative to identify high-potential innovations and innovators in EC-funded Framework Programme (FP) research and innovation projects and guide project consortia in terms of the appropriate steps to reach the market. This report presents the process and results of linking the IR data with third-party databases to obtain performance information about the key innovators in FP projects identified by the IR. In particular, IR participants identified between March 2014 and January 2018 are enriched with financial information from ORBIS, patent information from PATSTAT and private funding information from Dealroom. This enriched data warehouse aims to facilitate the profilation of IR participants in terms of performance, which can subsequently provide guidance for hands-on policy support initiatives. It creates foundation for future analysis of the determinants and barriers of innovation in EU-funded collaborative projects.
    Keywords: Financial and economic analysis; Composite indicators; ICT R & D and Innovation; Industrial research and innovation; Research and innovation policies; Digital Economy
    Date: 2018–12
  13. By: Thomas Fackler; Yvonne Giesing; Nadzeya Laurentsyeva
    Abstract: Does the emigration of skilled individuals necessarily result in losses for source countries due to the brain drain? Combining industry-level patenting and migration data from 32 European countries, we show that emigration in fact positively contributes to innovation in source countries. We use changes in the labour mobility legislation within Europe as exogenous variation to establish causality. By analysing patent citation data, we further provide evidence that these positive effects are driven by knowledge flows that are triggered by emigrants. While skilled migrants are not inventing in their home country anymore, they contribute to cross-border knowledge and technology diffusion and thus help less advanced countries to catch up to the technology frontier.
    Keywords: migration, innovation, knowledge spillovers, patent citations, EU enlargement
    JEL: F22 J61 O33 O31 O52
    Date: 2018
  14. By: Jahn, Vera; Steinhardt, Max Friedrich
    Abstract: This paper analyzes in how far immigration affects firm formation at the regional level. For this purpose, we exploit a placement policy in Germany in the 1990s for immigrants of German origin from Eastern Europe and the former Soviet Union. Our panel regressions suggest that immigration had a positive impact on regional firm formation. The most likely mechanisms driving this result are labor supply-side effects and positive implications of cultural diversity. Overall, our paper demonstrates that immigration induced changes in local labor supply can partially be absorbed by the creation of firms.
    Keywords: immigration,placement policy,economic impact,firms
    JEL: F22 L26 R11
    Date: 2018
  15. By: Emanuele Brancati; Raffaele Brancati; Dario Guarascio; Andrea Maresca; Manuel Romagnoli; Antonello Zanfei
    Abstract: This paper provides an in-depth study on the main firm-level drivers of external competitiveness during the recent crisis in Italy. We contribute to the debate on the Italian international position by presenting evidence based on a unique sample survey database (the MET dataset). Overall, our results confirm the high degree of heterogeneity of the Italian corporate sector and the well-known differences between internationalised and domestic companies in terms of performance as well as structure and behaviour. In particular, the data highlight not only the correlation between internationalisation and innovative activities but also a positive change of attitude of Italian firms towards these strategies. Our analysis shows that, whilst structural factors play a key role for external competitiveness (size, location, industry, etc.), other critical firm-level aspects, especially those related to strategic profiles, technological capabilities, and ‘proactive’ behaviour, trigger superior performances. To this extent, our policy suggestions focus on the need to sustain and foster innovative activities to improve aggregate competitiveness.
    JEL: F14 L25 O31 O33
    Date: 2018–09
  16. By: Brummund, Peter (University of Alabama); Connolly, Laura (University of Alabama)
    Abstract: Recent research shows that start-ups are important for job creation, but these firms are also inherently volatile. We use linked employer-employee data to examine the relative importance of firm age and firm size for job creation and destruction in Brazil. Firm age is a more important determinant of job creation in Brazil than firm size; young firms and start-ups create a relatively high number of jobs. However, young firms are also more likely to exit the market and have higher levels of employment volatility. We, therefore, condition the job creation analysis on job stability. Young firms and large firms create relatively more stable jobs in Brazil.
    Keywords: job creation, job stability, Brazilian labor market
    JEL: L25 J23 J63
    Date: 2018–11
  17. By: Clement Imbert; Marlon Seror; Yifan Zhang; Yanos Zylberberg
    Abstract: This paper estimates the causal effect of rural-urban migration on urban production in China. We use longitudinal data on manufacturing firms between 2001 and 2006 and exploit exogenous variation in rural-urban migration due to agricultural price shocks. Following a migrant inflow, labor costs decline and employment expands. Labor productivity decreases sharply and remains low in the medium run. A quantitative framework suggests that destinations become too labor-abundant and migration mostly benefits low- productivity firms within locations. As migrants select into high-productivity destinations, migration however strongly contributes to the equalization of factor productivity across locations.
    Keywords: rural-urban migration, structural transformation, urban production
    JEL: D24 J23 J61 O15
    Date: 2018
  18. By: Hamza El Guili (University of Abdelmalek Essaadi, Tangier, Morocco)
    Abstract: There has been an important increase in the international and inter-continental operations of African SMEs over the last decade, because of the emergence of regional “champions†, able to compete with foreign multinationals, present in the continent since many decades, but also because of the emergence of innovative and creative SMEs, capable to meet the market needs of various consumers of Africa. Understanding the particular international business landscape in Africa draws attention to several ignored research questions and research aspects, requiring further research and exploration, to contextualize the SMEs’ internationalization of African firms. This paper highlights relevant areas/aspects needed while studying the internationalization of SMEs, by bringing back the historical context of the continent. Next, this paper contributes to the understanding of the internationalization of African SMEs by analyzing the trends and opportunities of the research in this field. Finally, the challenges and the risks of the internationalization of African firms will be analyzed, in order to set the limits of the nature of internationalization of the continent’s SMEs.
    Keywords: Africa, SMEs, emerging markets, firms internationalization
    Date: 2018–05
  19. By: Bhaven N. Sampat
    Abstract: This report surveys the empirical literature from economics and related fields on patents and innovation. In particular, it reviews and synthesizes the empirical evidence on patents and first-generation innovation, the disclosure function of patents, and patents and follow-on innovation. The main results are summarized in fifteen charts.
    JEL: O34
    Date: 2018–12
  20. By: Stephan Gerschewski (Henley Business School, University of Reading); Yong Kyu Lew (Hankuk University of Foreign Studies, College of Business, South Korea); Zaheer Khan (University of Kent, Kent Business School, UK); Byung Il Park (Hankuk University of Foreign Studies, College of Business,South Korea)
    Abstract: This paper investigates the role of learning orientation in the post-entry performance of international new ventures (INVs) by examining the relationships of niche strategy, network resources, and learning orientation with the multi-dimensional post-entry performance of INVs. Based on the INV internationalisation literature, we develop and validate a conceptual model using a sample of 147 INVs from two relatively small and open economies from New Zealand and Australia. The results show that learning orientation of INVs positively mediates the relationship between niche orientation and network resources and INVs’ post-entry performance. Our study indicates that learning orientation may be an important capability through which INVs’ focused international business strategies and resources (e.g., niche orientation and network resources) may influence their multi-dimensional post-entry performance in terms of operational, financial and overall effectiveness measures. We draw key implications for research on INVs’ post-entry behaviour by explicating the role played by the firms’ learning capabilities, and how these capabilities may interact with their strategies and resources in enhancing the post-entry performance of INVs.
    Keywords: international new venture, learning orientation, niche orientation, network resources, post-entry performance
    JEL: M16
    Date: 2018–06
  21. By: Maria Rosaria Carillo (University of Naples Parthenope); Vincenzo Lombardo (University of Naples Parthenope); Alberto Zazzaro (Universit of Naples Federico II, CSEF and MoFiR)
    Abstract: This paper explores the causes and the consequences of the evolution of family firms in the growth process. The theory suggests that in early stages of development, valuable family specific human capital stimulated the productivity of family firms and the development process. However, in light of the rise in the importance of managerial talents for firms' productivity in later stages, family firms generated a misallocation of managerial talents, curbing productivity and economic growth. Evidence supports the dual impact of family firms in the development process and the role of socio-cultural characteristics in observed variations in the productivity of family firms.
    Keywords: Family firms, economic development and growth, culture and social structure, allocation of talents, industrialization
    JEL: D2 J62 L26 O14 O33 O4 Z1
    Date: 2019–01–22

This nep-sbm issue is ©2019 by João Carlos Correia Leitão. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.