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on Small Business Management |
| By: | Wadho, Waqar; Chaudhry, Azam |
| Abstract: | We examine the determinants of product, process, and organizational innovation, and their impact on firm labor productivity using data from a unique innovation survey of firms in Pakistan. We find significant heterogeneity in the impact of different innovations on labor productivity: Organizational innovation has the largest effect followed by process innovation. But unlike much of the literature, we found a negative impact of product innovation suggesting a disruption effect of new products; however, this is mitigated if new products are paired with process or organizational innovations. We find a strong impact of engaging in knowledge creation on product and process innovation. We found that external knowledge networks and innovation cooperation play no significant role in firms’ decision to perform R&D and its intensity, though vertical linkages with suppliers (clients) promote product (process) innovations. Foreign competition has a negative effect on product innovation and a positive effect on organizational innovation. |
| Keywords: | Technological Innovation,organizational innovation,labor productivity,developing countries,Labor intensive industries |
| JEL: | O31 O32 L25 L67 C31 C24 D22 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:466&r=all |
| By: | Andrés Rodríguez-Pose; Min Zhang |
| Abstract: | Does the variation in the quality of local government institutions affect the capacity of firms to innovate? This paper uses a unique dataset that combines the specific features of 2,700 firms with the institutional and socioeconomic characteristics of the 25 cities in China where they operate, in order to assess the extent to which institutional quality – measured across four dimensions: rule of law, government effectiveness, corruption, and regulatory quality – affects both the innovation probability and intensity of firms. The results of the econometric analysis show that poor institutional quality in urban China is an important barrier for firm-level innovation. In particular, a deficient rule of law, high corruption, and a weak regulatory quality strongly undermine firm-level innovation. The role of these factors is far more limited in the case of innovation intensity. Better institutions also reduce the amount of time firms spend dealing with government regulations in order to facilitate innovation. The results also indicate that the cost of weak institutions for innovation is higher for private than for state-owned firms, at least in the early stages of innovation. In general, differences in institutional quality generate local urban ecosystems that impinge on the propensity of firms to innovate. |
| Keywords: | innovation, institutions, government quality, firms, cities, China |
| JEL: | H1 O3 O31 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2005&r=all |
| By: | Konan Alain N’Ghauran (Univ Lyon, UJM Saint-Etienne, CNRS, GATE L-SE UMR 5824, F-42023 Saint-Etienne, France); Corinne Autant-Bernard (Univ Lyon, UJM Saint-Etienne, CNRS, GATE L-SE UMR 5824, F-42023 Saint-Etienne, France) |
| Abstract: | Despite the growing body of literature evaluating cluster policies, it still remains difficult to establish conclusively their structural effects on regional innovation networks. Focusing on the French cluster policy during the period 2005-2010, this study aims at evaluating how cluster policies influence the structure of local innovation networks following network topologies that may be beneficial for regional innovation. Based on a panel data of four periods and 94 NUTS3 French regions, we estimate spatial Durbin models, allowing us to identify direct, indirect and total effects of cluster policies. The results suggest that cluster policies can result in both positive and negative total effects on the structure of local innovation networks depending on regions’ technological specialisation. Beyond the heterogeneous effects, the results also highlight that cluster policies may lead to a regional competition for the strengthening of innovation networks. This finding echoed previous research pointing out the possible "beggar-thy-neighbour" effects of cluster policies. |
| Keywords: | Cluster, Regional innovation, Innovation network, Policy evaluation |
| JEL: | L52 O33 R58 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:2005&r=all |
| By: | Fisera,Boris; Horvath,Roman; Melecky,Martin |
| Abstract: | This paper examines the effect of Basel III implementation on the access to finance of small and medium-size enterprises in 32 emerging markets and developing economies. Analyzing rich, repeated cross-sectional data and a panel of matched firm-bank data in a difference-in-differences setting with sample selection adjustment, the authors find a short-term, moderately negative effect of Basel III on small and medium-size enterprises'access to financing. The results suggest that firms with access to bank credit prior to Basel III implementation could have been affected less than firms that were initially on the fringes of financial inclusion?firms with only a bank account. The paper fails to find any additional heterogeneous effects across firm size or age, bank capitalization or liquidity, or across countries that transitioned to Basel III from Basel II versus Basel 2.5. Overall, the initial conditions of the banking system as well as of complementary business and financial regulation can co-determine the size of short-term costs from the newly implemented global financial regulation in emerging markets and developing economies. |
| Date: | 2019–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9069&r=all |
| By: | Fang,Sheng; Shamseldin,Heba M.M.; Xu,L. Colin |
| Abstract: | Using World Bank Enterprise Survey data around the world, this paper examines how foreign direct investment is associated with female entrepreneurship (that is, a firm being managed and at least partly owned by women), along with other factors such as business environment and female empowerment, and their interactions with foreign direct investment. Female entrepreneurship rises with foreign direct investment inflow, lower entry barriers for women, women's better access to finance, higher female labor force participation, and women's better education. The positive association of foreign direct investment inflow and female entrepreneurship is stronger for firms in the service sectors and small firms. The horizontal competition effects of intra-industry foreign direct investment for female entrepreneurship are reduced when women face lower entry barriers for starting a business and have a higher labor force participation rate, and the effects do not depend on women's access to finance or their level of education. |
| Date: | 2019–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9083&r=all |
| By: | Amusa Hammed; Wabiri Njeri; Fadiran David |
| Abstract: | Using comprehensive, anonymized tax administrative data for the 2008–14 period, we examine firm-level productivity in South Africa. Measures of firm-level productivity are included in a spatial autoregressive model that assesses spillovers from total factor productivity originating from agglomeration economies and the spatial diffusion of productivity shocks.We find that across South Africa’s firms, intermediate inputs have the highest impact on firm productivity. The results from the spatial analysis indicate that for a firm in a particular region, its clustering with other firms, having increased market power, and an extended length of stay in a particular region have a greater impact on productivity than do market conditions and firm-specific characteristics associated with firms located in neighbouring regions or municipalities. |
| Keywords: | Agglomeration,South Africa,Firm productivity |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2019-93&r=all |
| By: | Naidoo Karmen |
| Abstract: | This paper investigates the effect of innovation on employment growth at the firm level in South Africa. Innovation is typically associated with better export performance at the firm level due to productivity enhancements and new products.However, the link between innovation and employment is more ambiguous. R&D targeted towards product innovation has been typically associated with employment growth. Process innovations may have a positive effect, but also have the potential to reduce the demand for labour.This paper aims to isolate the impact of innovation on export performance to understand the direct and indirect channels through which innovation can influence employment growth. The analysis makes use of a novel administrative dataset of all registered firms in South Africa for the 2010–16 period.The study finds that, overall, direct innovation is positively associated with employment growth; however, the indirect innovation channel is negative and points to the idea that the productivity enhancements necessary for South African exporters to compete internationally might promote labour-saving innovations. |
| Keywords: | Firm growth,R&D,Employment,Exports |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2019-83&r=all |
| By: | Claudiu Albulescu (CRIEF) |
| Abstract: | This paper assesses the role of financial performance in explaining firms' investment dynamics in the wine industry from the three European Union (EU) largest producers. The wine sector deserves special attention to investigate firms' investment behavior given the high competition imposed by the latecomers. More precisely, we investigate how the capitalization, liquidity and profitability influence the investment dynamics using firm-level data from the wine industry from France (331 firms), Italy (335) firms and Spain (442) firms. We use data from 2007 to 2014, drawing a comparison between these countries, and relying on difference-and system-GMM estimators. Specifically, the impact of profitability is positive and significant, while the capitalization has a significant and negative impact on the investment dynamics only in France and Spain. The influence of the liquidity ratio is negative and significant only in the case of Spain. Therefore, we notice different investment strategies for wine companies located in the largest producer countries. It appears that these findings are in general robust to different specifications of liquidity and profitability ratios, and to the different estimators we use. |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2001.10432&r=all |
| By: | Richard Deitz; Jaison R. Abel (National Regulatory Research Institute (Ohio State University); Federal Reserve Bank of New York; Ohio State University; Research and Statistics Group; University of Maine) |
| Abstract: | Policymakers are increasingly viewing colleges and universities as important engines of growth for their local areas. In addition to having direct economic impacts, these institutions help to raise the skills of an area?s workforce (its local ?human capital?), and they do this in two ways. First, by educating potential workers, they increase the supply of human capital in a region. Perhaps less obviously, these schools can also raise a region?s demand for human capital by helping local businesses create jobs for skilled workers. In this post, we draw on our recent academic research and Current Issues article to outline these pathways and how they might inform local economic development policy. (We also discuss our findings in a new video.) |
| Keywords: | human capital; local economic development; Regional economy; knowledge spillovers; higher education |
| JEL: | R1 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:86788&r=all |
| By: | Hardy,Morgan L.; Mccasland,Jamie Lee |
| Abstract: | Entrepreneurs in developing countries report that unreliable electricity imposes a serious constraint, yet little evidence exists on how blackouts impact the micro firms that account for the majority of employment. This paper estimates the effects of outages on small firms using original firm-level panel data and finds evidence of differential effects by firm size. Firms without employees experience large reductions in revenues and profits. Outages have no measurable effect on the output of firms with employees, where worker hours increase, weekly wages paid decrease, and the analysis fails to reject that blackouts have no effect on (average firm-level) worker hourly wages. |
| Date: | 2019–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9093&r=all |