nep-sbm New Economics Papers
on Small Business Management
Issue of 2020‒08‒17
24 papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Software Development and Innovation ‒ Exploring the Software Shift in Innovation in Swedish Firms By Andersson, Martin; Kusetogullari, Anna; Wernberg, Joakim
  2. Tech Clusters By Kerr, William R.; Robert-Nicoud, Frédéric
  3. Desempeño Innovador y Cooperación. Una Aplicación De La Técnica Oxaca Blinder By Carolina Pasciaroni; Andrea Barbero
  4. Schumpeterian entry: innovation, exporting, and growth aspirations of entrepreneurs By Estrin, Saul; Korosteleva, Julia; Mickiewicz, Tomasz
  5. Spatial autocorrelation of exports and R&D expenditures in Portugal By António Carlos de Campos; Luís Lopes; Carlos Carreira
  6. Debt Maturity and Innovation By Yuliyan Mitkov
  7. Socioeconomic effects of collectivist and individualist education: A comparison between North and South Vietnam By Hanna Adam
  8. Innovation and Corporate Cash Holdings in the Era of Globalization By Konrad Adler; JaeBin Ahn; Mai Chi Dao
  9. Spouses and entrepreneurship By Joao Galindo da Fonseca; Charles Berube
  10. An International Comparison of FDI Entry Mode (Japanese) By SAITO Yukiko; TAKAYAMA Haruka
  11. Le développement international des entreprises nées globales : l'importance du réseau social By Christophe Estay; Manzoom Akhter
  12. Unemployment, entrepreneurship and firm outcomes By Joao Galindo da Fonseca
  13. Public-private R&D partnerships: A solution to increase knowledge sharing in R&D cooperation By Adrien Hervouet; Michel Trommetter
  14. Die weibliche Gen Z - (k)eine Generation von Unternehmerinnen? Ein Vergleich der jungen Generation mit dem Profil erfolgreicher Unternehmerinnen By Meyer, Karin
  15. La RSE et le désengagement des employés au travail : le rôle médiateur de la réputation de l'entreprise By Rey Dang; l'Hocine Houanti; Mustapha Meziani; Tiziri Makhlouf
  16. Market Creating Innovations in the EU Framework Programme. Methodology behind the Innovation Radar’s Market Creation Potential Indicator By Daniel Nepelski
  17. A cross-sectional analysis of growth and profit rate distribution: the Spanish case By Vidal-Tomás, David; Ruiz-Buforn, Aba; Blanco-Arroyo, Omar; Alfarano, Simone
  18. Foreign Currency Borrowing and Firm Financing Constraints in Emerging Markets: Evidence from India By Mohapatra, Sanket; Nagar, Jay Prakash
  19. The Financing of Investment: Firm Size, Asset Tangibility and the Size of Investment By Mathias Lé; Frédéric Vinas
  20. Capital Market Financing and Firm Growth By Didier Brandao,Tatiana; Levine,Ross Eric; Llovet Montanes,Ruth; Schmukler,Sergio L.
  22. Spouses, children and entrepreneurship By Joao Galindo da Fonseca; Charles Berubé
  23. The political economy of public research, or why some governments commit to research more than others By Filippetti, Andrea; Vezzani, Antonio
  24. The Geography of Business Dynamism and Skill Biased Technical Change By Hannah Rubinton

  1. By: Andersson, Martin (Department of Industrial Economics Blekinge Institute of Technology (BTH)); Kusetogullari, Anna (Department of Industrial Economics Blekinge Institute of Technology (BTH)); Wernberg, Joakim (Swedish Entrepreneurship Forum)
    Abstract: Several scholars as well as industry professionals have claimed that there is a “software-biased shift” in the nature and direction of innovation in that software development is a core part of innovation activities in firms across a wide array of industries. Empirical firm-level evidence of such a shift is still scant. We employ new and unique firm-level survey data on the frequency and nature of software development among firms in Sweden, matched with the Community Innovation Survey (CIS). We find robust evidence supporting a software-bias in innovation in that software development is associated with a higher likelihood of introducing innovations as well as higher innovation sales among firms in both manufacturing and services industries. Furthermore, this positive relationship is stronger for firms employing in-house software developers than for those that only use external developers, suggesting that there is a hierarchy but possibly also a complementarity between internal and external software development. We also find support for complementarity between software-based technology and human capital; the estimated marginal effect of software development on innovation is particularly strong for firms that combine in-house software development with a highly educated workforce in STEM as well as in other disciplines.
    Keywords: Innovation; Software; Software development; Digitalization; Human capital; Software bias; Digital technology; Absorptive capacity
    JEL: L25 O15 O32 O33 O43
    Date: 2020–06–30
  2. By: Kerr, William R.; Robert-Nicoud, Frédéric
    Abstract: Tech clusters like Silicon Valley play a central role for modern innovation, business competitiveness, and economic performance. This paper reviews what constitutes a tech cluster, how they function internally, and the degree to which policy makers can purposefully foster them. We describe the growing influence of advanced technologies for businesses outside of traditional tech fields, the strains and backlash that tech clusters are experiencing, and emerging research questions for theory and empirical work.
    Keywords: agglomeration; Clusters; entrepreneurship; Innovation; patents
    Date: 2019–11
  3. By: Carolina Pasciaroni; Andrea Barbero
    Abstract: This paper aims to explore the effect that cooperation have on the innovative performance of industrial firms in Argentina. In order to this objective, a comparative analysis is carried out between firms that do not cooperate versus firms that cooperate with different partners (commercial and scientific-technological) for different goals (R&D, technology transfer, organizational changes). The innovative performance of the firms is measured in terms of obtaining new and/or improved products/ processes. The Oaxaca-Blinder decomposition methodology allows explaining the gap in innovative performance breaking down this gap in an part that is due to group differences in the magnitudes of the determinants (endowments effect) and in a part that is due to group differences in the effects of these determinants (coefficients effect). Even in the case of cooperation for more advanced goals, the results found do not offer evidence regarding increases in the efficiency of innovation activities derived from cooperating with different partners.
    Keywords: innovation, cooperation, commercial partners, science-technological partners, cooperation for different goals, industrial firms, Argentina.
    JEL: O30 O31 O54
    Date: 2019–11
  4. By: Estrin, Saul; Korosteleva, Julia; Mickiewicz, Tomasz
    Abstract: We posit that entrepreneurs who engage in strategic activities will have high growth aspirations. Our proposed mechanism is that strategic engagements, specifically product innovation, process innovation and internationalization, open entrepreneurial ventures to learning, and thereby greater growth opportunities. Furthermore, these learning effects are reinforced in research-intensive industrial environments. We apply multilevel random slope estimation for individuals from 74 countries, 2001–2015, to derive results consistent with our hypotheses. The findings are robust to potential reverse causality between strategic behavior and growth aspirations, and to selection bias resulting from strategic engagements being only observed for actual entrepreneurs.
    Keywords: entrepreneurship; exporting; global entrepreneurship monitor; growth aspirations; innovation; knowledge
    JEL: R14 J01 J1
    Date: 2020–03–26
  5. By: António Carlos de Campos (State University of Maringá, Department of Economics); Luís Lopes (University of Coimbra, Centre for Business and Economics Research, CeBER and Faculty of Economics); Carlos Carreira (University of Coimbra, Centre for Business and Economics Research, CeBER and Faculty of Economics)
    Abstract: This article analyzes spatial autocorrelations and the formation of clusters of exports, based on Research and Development (R&D) intensity in Portugal. The central idea is that exports show relative interdependence and spillover effects among nearby regions and a direct relationship with R&D expenditures. It adopts the new taxonomy of the OECD, separating exports by manufacturing and non-manufacturing activities. Methodologically, is was used Exploratory Spatial Data Analysis (ESDA), utilizing Global Moran's Index and LISA. The results showed the presence of positive spatial autocorrelation of exports and the formation of a cluster of the High-High type for the Porto metropolitan region and Aveiro region. There was no confirmation of positive spatial autocorrelation for R&D expenditures among the regions of Portugal. However, there was both a positive spatial autocorrelation for exports associated with R&D expenditures as well as the formation of a regional cluster with high-high pattern for the Aveiro region. This outcome can be explained, in part, by nationally and internationally recognized universities and research centers surrounding the region, favoring knowledge spillovers across the regions.
    Keywords: Export; R&D expenditures; Spatial autocorrelation; Technological intensity; Clusters; Spillovers; Portugal.
    JEL: F10 F14 O32 R12
    Date: 2020
  6. By: Yuliyan Mitkov
    Abstract: The financing of innovative firms must balance two goals. On one hand, since innovation is inherently risky, the firm must receive adequate protection after failure to motivate innovative activity. At the same time, the firm must be liquidated when its assets can be redeployed more efficiently elsewhere. In this paper, I propose a theory of debt maturity as an incentive device to motivate innovation. I show how the firm’s optimal debt maturity is shaped by the possibility of debt renegotiations, the tangibility of its assets and the riskiness of its innovative project. The model predicts that innovative firms would lengthen their debt maturity when expecting to extract more concessions from their financiers once the project has started.
    Keywords: Debt maturity, Innovation, Risk-taking, Renegotiation, Agency costs
    JEL: G24 G32 G33 O31
    Date: 2020–07
  7. By: Hanna Adam
    Abstract: This working paper analyses the socioeconomic effects of education in two different political systems by investigating whether individuals educated in a collectivist education system are less likely to become entrepreneurs than individuals educated in an individualist system. It exploits the separation of Vietnam into a communist northern and a capitalist southern part between 1954 and 1975 to identify education in the respective systems, keeping factors such as national culture or historical background fixed. A Probit regression using survey data on 1,164 individuals suggests that being educated in the North makes it 8.6 percent less likely to become an entrepreneur than being educated in the South. This demonstrates that education in different systems may have an effect on entrepreneurial activity, although challenges such as necessity-driven entrepreneurship remain unresolved.
    Keywords: Entrepreneurship, Education, Vietnam, Survey data, Probit regression
    JEL: L26 N35 O12 P30 R2
    Date: 2020–07
  8. By: Konrad Adler; JaeBin Ahn; Mai Chi Dao
    Abstract: We document a broad-based trend in rising cash holdings of firms across major industrialized countries over the last two decades, a trend that is most pronounced for firms engaged strongly in R&D activities. Our contributions to the literature are twofold. First, we develop a simple model that brings together the insights from modern trade theory (Melitz, 2003) with those of contract theory in corporate finance (Holmström and Tirole, 1998) to show that increased openness to trade can result in rising returns to innovation and in turn greater demand for cash as firms insure against innovation-induced liquidity risk. Second, we derive sharp empirical predictions and find supporting evidence for them using firm-level data across major G7 countries during 1995-2014, a period that saw an unprecedented rise in globalization and business innovation.
    Keywords: International trade;Corporate finance;Globalization;Trade models;Bilateral trade;Total factor productivity;Trading systems;Financial crises;Real interest rates;cash holdings, R&D, R&,#x0026,D, Models of Trade with Imperfect Competition and Scale Economies,export opportunity,asset ratio,trade cost,cash flow,total asset
    Date: 2019–01–18
  9. By: Joao Galindo da Fonseca (Université de Montréal); Charles Berube (Innovation, Science and Economic Development Canada)
    Abstract: Does having a spouse influence an individual’s decision to start a firm and what firms they create? The answer to this question is crucial for our understanding of how recent changes to family composition influence firm creation. We develop a model of endogenous entrepreneurship with spousal labour supply decisions and endogenous marriage. Married individuals have three channels, that go in opposite directions, which influence their choice to start a firm relative to the unmarried. Firstly, spouses work less when the business is more profitable partially offsetting the benefit of higher profits (spousal substitution effect). Secondly, if the business fails, the spouse works more hours (spousal insurance effect). Finally, a married individual shares their income with their spouse which decreases their income as a worker, their cost to entrepreneurship (spousal opportunity cost effect). We proceed to test empirically the relative strength of these channels. The model is informative of the components of the error term and the conditions for validity of our instrumental variable strategy. Using city level variation in the past composition of immigrants we show higher marriage rates are associated to more entry and lower average size of startups.
    Keywords: Firm dynamics, Macroeconomics, Labor markets, Family economics
    JEL: E24 E23 J63 J64
    Date: 2019–05
  10. By: SAITO Yukiko; TAKAYAMA Haruka
    Abstract: There are two types of FDI entry modes. The first is greenfield FDI (i.e., an investing firm builds a new foreign affiliate), and the other is cross-border M&A or brownfield FDI (i.e., an investing firm acquires an existing local firm). We investigate how firms choose between entry modes and compare the choices of Japanese, US, German and Chinese firms. Our empirical analysis suggests that more productive Japanese firms choose cross-border M&A rather than greenfield FDI. This evidence contrasts with the existing literature, specifically, Nocke and Yeaple (2008), which suggests that more productive firms conduct greenfield FDI rather than cross-border M&A.
    Date: 2020–07
  11. By: Christophe Estay (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM], HESAM - HESAM Université, Métis Lab EM Normandie - EM Normandie - École de Management de Normandie); Manzoom Akhter (LUMS - Lahore University of Management Sciences)
    Abstract: The paper aims to examine the role of networks in the resource acquisition of Pakistani born-global firms, and the strength of ties that entrepreneurs use during critical stages of the early internationalization. The paper adopted both semi-structured interviews with a panel of experts and a collection of SMEs cases to explore whether findings from developed countries are applicable to small firms in developing countries and to give evidence of the born-global phenomenon in a developing country like Pakistan. The findings of our studies reveal that Pakistani SMEs, in their quest to become born-global firms, also use their networks to overcome the constraints related to rapid internationalisation. The paper found that an efficient network is consist of both strong and weak ties, because different types of ties provide different resources.
    Abstract: L'article vise à examiner, d'une part, le rôle des réseaux dans l'acquisition des ressources des entreprises pakistanaises nées globales et, d'autre part, la force des liens que les entrepreneurs utilisent au cours des étapes critiques du début de l'internationalisation. La méthode de recherche est basée sur des entretiens semi-structurés avec un panel d'experts au sein de PME. Ce travail de terrain permet de comparer les conclusions des études menées dans les pays développés avec la situation des petites entreprises des pays en développement, le cas du Pakistan étant retenu. Notre recherche révèle que les PME pakistanaises, dans leur quête pour devenir des entreprises globales, utilisent leurs réseaux pour surmonter les contraintes liées à une internationalisation rapide. L'article montre qu'un réseau efficace est constitué à la fois de liens forts et de liens faibles, chaque type de liens fournissant des ressources différentes.
    Date: 2020–06–01
  12. By: Joao Galindo da Fonseca (Université de Montréal)
    Abstract: Are there differences between firms created by unemployed individuals relative to otherwise identical employed individuals? The answer is crucial for understanding the impact of policies that promote entrepreneurship among the unemployed. I develop an equilibrium model of entrepreneurship. Different outside options imply the unemployed are more likely to start firms, but these are smaller and fail more often. I verify these implications using a new administrative Canadian matched owner-employer-employee dataset. I use firm closures to identify random assignments of individuals to unemployment. I find that subsidies for firms started by the unemployed induce a reallocation of resources to low-productivity firms. The mechanism is further tested empirically by verifying that wage workers are more responsive to wages than the unemployed in their decision to start a firm.
    Keywords: Firm dynamics, Unemployment, Macroeconomics, Labor markets
    JEL: E24 E23 J63 J64
    Date: 2019–05
  13. By: Adrien Hervouet (GAEL [2020-....] - Laboratoire d'Economie Appliquée de Grenoble [2020-....] - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA [2020-....] - Université Grenoble Alpes [2020-....] - Grenoble INP [2020-....] - Institut polytechnique de Grenoble - Grenoble Institute of Technology [2020-....] - UGA [2020-....] - Université Grenoble Alpes [2020-....]); Michel Trommetter (GAEL [2020-....] - Laboratoire d'Economie Appliquée de Grenoble [2020-....] - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA [2020-....] - Université Grenoble Alpes [2020-....] - Grenoble INP [2020-....] - Institut polytechnique de Grenoble - Grenoble Institute of Technology [2020-....] - UGA [2020-....] - Université Grenoble Alpes [2020-....])
    Abstract: Knowledge sharing is crucial for the success of most R&D cooperations. This paper investigates the best conditions for fostering knowledge sharing in R&D cooperation and looks at how the establishment of Public-Private R&D Partnerships (PPP in R&D) could be a useful tool for this purpose. In this end, it proposes a theoretical model, related to the R&D cooperation literature, that takes into consideration the impacts of firms outside R&D cooperation and the presence of two kinds of spillover: a technology spillover and a product rivalry effect. The model shows that both spillovers can affect knowledge sharing negatively, and that PPP in R&D can be useful to promote knowledge sharing. First, public authorities can choose partners that will facilitate efficient knowledge sharing. Second, to avoid the negative impacts of spillovers on behavior in terms of knowledge sharing, public laboratories should be used as intermediaries for the prior and strategic knowledge of firms. Public labs can use the prior knowledge of firms to innovate, and then spread this innovation among the partners of the PPP, without spreading the prior knowledge of the firms.
    Keywords: Public-private R&D partnership,R&D cooperation,Knowledge sharing,Spillovers
    Date: 2020–07
  14. By: Meyer, Karin
    Keywords: Women Entrepreneurship,Entrepreneurship Education,Small and Medium-Sized Companies,Generation Z
    JEL: M10 M13
    Date: 2020
  15. By: Rey Dang (ICN Business School); l'Hocine Houanti (Sup de Co La Rochelle - Ecole Supérieure de Commerce de la Rochelle - Groupe Sup de Co La Rochelle); Mustapha Meziani (Université Bejaïa LRMTQ); Tiziri Makhlouf
    Abstract: The aim of our article is to explore the links between CSR and one of firm's socio-organizational risks, namely the risk linked to employees' disengagement at work, by checking two relationships: the mediating effect of perceived reputation of the company and the moderating effect of the visibility of the social information disseminated. Our research choice is based on hypothetico deductive reasoning, which led us to a quantitative study whose investigative tool is the questionnaire. The data collected following the transmission of the questionnaires to 131 leaders and managers of 20 Tunisian companies allows us to carry out the necessary statistical tests to confront our conceptual research model with reality. The results of these tests have shown that our research model is not supported by field data. However, the results from our testing model assumptions allow us to conclude that a policy of societal information's dissemination, perceived as more visible by the employees, makes it possible to improve the positive effect of responsibilities of an Ethico-Philanthropic and Economic-Legal nature on the perceived reputation of the company. Keywords: corporate social responsibility, perceived reputation, disengagement from work, visibility of the social information disseminated.
    Abstract: Notre article a pour objectif d'explorer les liens entre la RSE et l'un des risques socio-organisationnels de l'entreprise, à savoir le risque lié au désengagement des employés au travail, en vérifiant deux relations : l'effet médiateur de la réputation perçue de l'entreprise et l'effet modérateur de la visibilité des informations sociales diffusées. Notre choix de recherche est basé sur un raisonnement hypothético-déductif, ce qui nous a conduits à une étude quantitative dont l'outil d'investigation est le questionnaire. Les données collectées suite à la transmission des questionnaires auprès de 131 chefs et responsables de 20 entreprises tunisiennes nous ont permis de procéder aux tests statistiques nécessaires à la confrontation de notre modèle conceptuel de recherche à la réalité. Les résultats relatifs à ces tests nous ont permis de constater que notre modèle de recherche est non corroboré par les données du terrain. Toutefois, les résultats rela-tifs aux tests des hypothèses de notre recherche nous permettent de conclure qu'une politique de diffusion d'informations sociétales, perçue comme plus visible par les employés, permet d'améliorer l'impact positif des responsabilités à caractère Éthico-Philanthropique et Économico-Légal sur la réputation perçue de l'entreprise. Mots clés : responsabilité sociale de l'entreprise, réputation perçue, désengagement au travail, visibilité des informations sociales diffusées.
    Date: 2020–06–01
  16. By: Daniel Nepelski (European Commission - JRC)
    Abstract: Recognizing the fact that the support of the public sector of research and innovation lays the foundations for new technologies, industries and markets, this report presents the Market Creation Potential Indicator and applies it to the innovations coming out of the EC-funded FP research projects. This way, it contributes to the creation of a toolset to measure and assess the market creating effects of public R&I policies.
    Keywords: Research and innovation policy, market creating innovation, Framework Programme, European Commission, Europe
    Date: 2020–06
  17. By: Vidal-Tomás, David; Ruiz-Buforn, Aba; Blanco-Arroyo, Omar; Alfarano, Simone
    Abstract: We analyse the time evolution of the empirical cross-sectional distribution of firms profit and growth rates. In particular, we analyse the conditional properties of the empirical distributions depending on the size of the firms and business cycle phase. In order to do so, we employ the Laplace distribution as a benchmark, further considering the Subbotin and Asymmetric Exponential Power (AEP hereafter) distributions, to capture the potential asymmetry and leptokurtosis of the empirical distribution. Our results show that the profit rates of large firms are characterised by an asymmetric Laplace distribution with parameters largely independent of the business cycle phase. Small firms, instead, are characterised by the AEP distribution, which accounts for the conditional dependence of distribution on the phase of the business cycle. We observe that the largest firms are more robust to downturns compared to the small firms, given their invariant distributional characteristics during crisis periods.
    Keywords: Profit rates ; Growth rates ; Firm size ; Business cycle ; Laplace distribution ; Asymmetric Exponential Power distribution
    JEL: C10 D21 E10 L10
    Date: 2020–07–26
  18. By: Mohapatra, Sanket; Nagar, Jay Prakash
    Abstract: This study examines the relationship between foreign currency borrowing and financing constraints for Indian firms. Using panel data for 2,512 non-financial listed firms in India during 1996-2016, this study finds that the sensitivity of investment to internal cash flows, an indicator of financing constraints, is higher for firms with foreign currency debt exposure compared to other firms. Financing constraints are higher prior to new foreign currency borrowing compared to a matched sample of firms with only domestic borrowing, but decrease after foreign borrowing, suggesting that foreign debt reduces firms’ financing constraints. Moreover, firms that have relationships with either private or foreign banks have higher financing constraints when undertaking new foreign borrowing compared to those enjoying exclusive relationships with only government-owned banks. The financing constraints for foreign currency borrowers are also found to be higher during domestic credit booms compared to other periods. Non-manufacturing firms and those with lower than median export revenues and higher than median tangible assets experience greater financing constraints compared to other firms when they borrow in foreign currencies. These findings provide new evidence on the role of foreign currency borrowing in mitigating financing constraints in emerging market economies.
    Date: 2020–08–01
  19. By: Mathias Lé; Frédéric Vinas
    Abstract: How do firms finance their investment? To what extent does the financing mix depends on the nature or the size of investment? To what extent does the funding mix of investment vary along firm size? Relying on a unique database of firms covering 72% of the value added in France over three decades, this paper addresses those questions and provides a comprehensive picture of the financial resources used by firms to finance their investment. We uncover significant cross-sectional heterogeneity in the financing mix of investment along firm size, asset tangibility and investment size. In particular, we show that the commonly held view that "firms strongly rely on bank credit in a bank-based economy" weakens significantly as we consider larger firms or when it comes to finance intangible investments or relatively small investments.
    Keywords: Investment, Working Capital, Firm Financing, Bank Credit, Equity Finance, Retained Earnings, Firm Size, Investment Spikes .
    JEL: E22 G21 G30 G31 G32
    Date: 2020
  20. By: Didier Brandao,Tatiana; Levine,Ross Eric; Llovet Montanes,Ruth; Schmukler,Sergio L.
    Abstract: This paper studies whether there is a connection between finance and growth at the firm level. It employs a new dataset of 150,165 equity and bond issuances around the world, matched with income and balance sheet data for 62,653 listed firms in 65 countries over 1990-2016. Three main patterns emerge from the analyses. First, firms that choose to issue in capital markets use the funds raised to grow by enhancing their productive capabilities, increasing their tangible and intangible capital and the number of employees. Growth accelerates as firms raise funds. Second, the faster growth is more pronounced among firms that are more likely to face tighter financing constraints, namely, small, young, and high-R&D firms. Third, capital market issuances are associated with faster growth among firms located in countries with more developed capital markets relative to banks. Capital markets are also comparatively effective at allowing financially constrained firms to raise capital.
    Keywords: Financial Sector Policy,Capital Markets and Capital Flows,Capital Flows,Financial Economics,Finance and Development,Mining&Extractive Industry (Non-Energy)
    Date: 2020–07–27
  21. By: Bruno Bittencourt (UNISINOS - Universidade do Vale do Rio dos Sinos); Aurora Zen (UFRGS - Universidade Federal do Rio Grande do Sul [Porto Alegre]); Diego Santos (UFRGS - Universidade Federal do Rio Grande do Sul [Porto Alegre])
    Abstract: The universities have become more entrepreneurial and constitute innovation ecosystems, responsible for promoting innovation and generating development for people, busines and regions. Although the theme of innovation ecosystems has been expanding in the literature, there is a gap about the management/orchestration of those environments. Therefore, this paper aims at understanding which are the roles and activities of the orchestrator of the university innovation ecosystem. For that, we conducted an action research in the innovation ecosystem of UFRGS, orchestrated by its Science and Technological Park, Zenit. We identified key success factors for that process and we understood that the orchestrator of the university has as roles and activities: ap and compose the network, link complementary actors, construct knowledge activation, facilitate transactions) a demands, recognize and commercialize innovation, manage innovation appropriability). From that, we proposed some insigths to facilitate actions for the orchestration of the innovation ecosystem in the university.
    Keywords: innovation ecosystem,universities,network orchestrator,orchestration
    Date: 2020–04–01
  22. By: Joao Galindo da Fonseca (Université de Montréal); Charles Berubé (Innovation, Science and Economic Development Canada)
    Abstract: We develop a model of endogenous entrepreneurship and marriage. Spouses influence entrepreneurship via three channels: they reduce benefits by working less the more profitable the business is, they reduce costs by working more in case of business failure, and children, associated with a spouse, increase the cost of failure. We use administrative matched owner-employer-employee spouse data to estimate the specifications derived from our model. The model is informative on the sources of endogeneity and the IV strategy. We show that higher marriage rates induce less entry but larger firms on average. Through the lens of our model, marriage increases firm productivity.
    Keywords: Labor markets, Family economics, Macroeconomics, Firm dynamics
    JEL: E24 E23 J12 J60
    Date: 2020–04
  23. By: Filippetti, Andrea (Italian National Research Council (CNR) and Birkbeck College, University of London); Vezzani, Antonio (University Roma Tre, Department of Economics)
    Abstract: The broad consensus about the benefits of public research is at odds with the fact that investment is in general declining but with different patterns across countries. This triggers our research question: why do some governments invest in public research more than others? By relying on political economy literature, we frame investment in public research as a political choice depending on the political institutions of countries. Based on an empirical analysis on 41 countries we find a robust relationship between public-funded research and political institutions. Countries with parliamentary forms of government, proportional electoral rules and bicameralism devote larger shares of GDP and of public expenditure to research. We also find a great role of encompassing civic society organizations in encouraging public research. Political economy offers a promising perspective to delve into the patterns of public research. As for policy implications, majoritarian-like reforms might discourage long-term policies and harm the long-term potential for economic growth.
    Keywords: public research, political economy, R&D, innovation policy
    JEL: O31 O33 O38 P16 P48
    Date: 2020–06–18
  24. By: Hannah Rubinton
    Abstract: This paper seeks to explain three key components of the growing regional disparities in the U.S. since 1980, referred to as the Great Divergence by Moretti (2012). Namely, big cities saw a larger increase in the relative wages of skilled workers, a larger increase in the relative supply of skilled workers, and a smaller decline in business dynamism. These trends can be explained by differences across cities in the extent to which firms adopt new skill-biased technologies. In response to the introduction of a new skill-biased, high fixed cost but low marginal cost technology, firms endogenously adopt more in big cities, in cities that offer abundant amenities for high-skilled workers and in cities that are more productive in using high-skilled labor. The differences in adoption can account for the increasing relationship between skill intensity and city size, the divergence of the city size wage premium by skill group and the changing cross sectional patterns of business dynamism. I document a new fact that firms in big cities invest more in Information and Communication Technology per employee than firms in small cities,consistent with patterns of technology adoption in the model.
    Keywords: Skill Biased Technical Change; Technology Adoption; Economic Geography
    JEL: R12 O33
    Date: 2020–07–21

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