nep-sbm New Economics Papers
on Small Business Management
Issue of 2022‒03‒21
ten papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. FDI Spillover Effects on Innovation Activities of Knowledge-using and Knowledge-creating Firms: Evidence from an Emerging Economy By Iraj Hashi; Mehtap Hisarciklilar; Slavo Radošević; Nebojša Stojčić; Nina Vujanović
  2. Entrepreneurship and Innovation Enhancement Policies in the Micro-Meso and the Macro Level: A Preliminary Review By Chatzinikolaou, Dimos; Vlados, Charis; Koutroukis, Theodore
  3. Incubation Process: A Key Innovation Lever for Successful Start-Up Businesses By Maryam Elbahjaoui; Abdelaziz Elabjani
  4. Regional and less developed business ecosystems: Strategies and development prospects By Katimertzopoulos, Fotios; Vlados, Charis; Koutroukis, Theodore
  5. A Structural Empirical Model of R&D Investment, Firm Heterogeneity, and Industry Evolution By Yanyou Chen; Daniel Xu
  6. Patent Publication and Innovation By Deepak Hegde; Kyle F. Herkenhoff; Chenqi Zhu
  7. Regional diversification in Brazil: the role of relatedness and complexity By Mariane Santos Françoso; Ron Boschma; Nicholas Vonortas
  8. Kazakhstan's growing entrepreneurial ecosystem at a glance By Leila Farraj; Aminanur Chaia; Shumaila Yousafzai
  9. Wage dispersion and firm performance: evidence from Kazakhstan By Dinara Alpysbayeva; Jozef Konings; Venkat Subramanian; Aigerim Yergabulova
  10. Environmental Preferences and Technological Choices : Is Market Competition Clean or Dirty? By Philippe Aghion; Roland Bénabou; Ralf Martin; Alexandra Roulet

  1. By: Iraj Hashi; Mehtap Hisarciklilar; Slavo Radošević; Nebojša Stojčić; Nina Vujanović (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: The beneficial effects of innovation for firms’ performance and competitiveness are well documented, but it has been suggested in recent years that innovation regimes differ between advanced and emerging economies. While advanced economies rely on knowledge generation, their emerging counterparts follow mainly a knowledge-use regime through the application of existing knowledge and technology. Climbing up the technological ladder can be helped through spillovers from foreign investors to local firms. We investigate whether FDI spillovers influence different phases of the innovation process (from decision to innovate to productivity) among knowledge-using and knowledge-creating firms in an emerging European economy. The results show that the innovation process in emerging economies is closer to the imitation than the creation of novel products. Local firms benefit from foreign counterparts in the early phase of the innovation process. Stronger FDI effects are found among firms that undertake innovation through knowledge use rather than through knowledge generation.
    Keywords: knowledge use; knowledge generation; FDI; innovation; emerging economy
    JEL: F21 F23 L25 C31 L21
    Date: 2022–03
  2. By: Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics); Vlados, Charis (Democritus University of Thrace, Department of Economics); Koutroukis, Theodore (Democritus University of Thrace, Department of Economics)
    Abstract: Entrepreneurship and the resulting innovation should be at the developmental epicenter for the different socio-economic systems. By analyzing the various levels of understanding and practical implementation of policies to enhance entrepreneurship and innovation, this article aims at a first classification and categorization of these. This article analyzes the concepts of innovation and entrepreneurship and the classification of policies to stimulate them. We argue that the micro-meso entrepreneurship policy domain is the most decisive because it produces and reproduces knowledge within businesses and today’s globalized industries. This knowledge is critical to innovation, especially in the current conditions of the current COVID-19 crisis where traditional industries lose market shares. This classification of policies to enhance entrepreneurship and innovation is the first step in distinguishing the best practices suggested by the scholarly literature in conjunction with applied examples.
    Keywords: entrepreneurship; innovation; micro-meso; macrolevel; entrepreneurship policy; innovation policy
    JEL: L26 O39
    Date: 2022–11–20
  3. By: Maryam Elbahjaoui (laboratoire Interdisciplinaire de Recherches et d’études en management des organisations et droit de l’entreprise-LIREMD); Abdelaziz Elabjani (laboratoire Interdisciplinaire de Recherches et d’études en management des organisations et droit de l’entreprise-LIREMD)
    Abstract: The purpose of this research is to describe the incubation relationship to establish win-win relations between incubator and entrepreneur, which allows us to get around all the obstacles that prevent us from maintaining a sustained level of innovation. Within an ecosystem of entrepreneurial support, the incubator has a leading role because, he constitutes the bridge between the entrepreneur and the external environment, to create this relationship; he develops cooperative strategies with other incubators so that his support offer has clarity and good legibility for projects leaders. The findings are useful for incubators and entrepreneurs-owners of start-ups in their efforts to enhance the innovation of their firm.
    Keywords: 3 3 T Incubation,innovation,startup,morocco,Incubation
    Date: 2021
  4. By: Katimertzopoulos, Fotios (Democritus University of Thrace, Department of Economics); Vlados, Charis (Democritus University of Thrace, Department of Economics); Koutroukis, Theodore (Democritus University of Thrace, Department of Economics)
    Abstract: James Moore coined the term business ecosystem, where businesses are considered as components of an ecosystem in which they collaborate, satisfying consumers and integrating innovation. A business ecosystem is an economic community supported by a structure of interacting organizations-businesses and individuals producing goods and services for consumers. The business strategy in a regional and local innovation ecosystem faces various challenges, such as a possible conflict with the great forces of the ecosystem and the creation of a healthy partnership for the development of new products-services. The business strategy developed in these ecosystems takes the form of new companies that use technological change to introduce new products or new business models through new competitive scenarios and the reciprocal relationships developed in this context. However, most businesses, especially in remote and underdeveloped regional and local business ecosystems, are facing many challenges; as such they require a different support framework for their innovation system. This system should work a way that it will enable organizations to develop their innovations based on their business partnerships, being able at the same time to balance their cognitive asymmetries. In the present research study, through the literature review of scientific research in the field of regional innovation systems and less developed business ecosystems, the central analytical dimensions and strategies (Stra.Tech. Man innovation theory) are identified and analyzed to determine how they could contribute to achieve effective business innovation and long-term stable growth and development.
    Keywords: regional innovation system; business ecosystem; less developed business ecosystems; strategy innovation; Stra.Tech.Man innovation theory
    JEL: M19 O30 P48 R19
    Date: 2021–11–10
  5. By: Yanyou Chen; Daniel Xu
    Abstract: This paper develops and estimates an industry equilibrium model of manufacturing plants in the Korean electric motor industry from 1991 to 1996. Plant-level decisions on R&D, physical capital investment, entry, and exit are integrated in a dynamic setting with knowledge spillovers. We use a simulated method of moments estimator and the novel approximation method of Weintraub, Benkard and Van Roy (2008) to estimate the R&D cost, magnitude of knowledge spillovers, adjustment costs of physical investment, and plant scrap value distribution. Knowledge spillovers are essential to explaining the firm-level productivity evolution and the equilibrium market configuration. A counterfactual experiment reveals that a 15% R&D subsidy maximizes industry output and is broadly consistent with a past policy initiative of the Korean government.
    JEL: L11 O33
    Date: 2022–02
  6. By: Deepak Hegde; Kyle F. Herkenhoff; Chenqi Zhu
    Abstract: How does the publication of patents affect innovation? We answer this question by exploiting a large-scale natural experiment—the passage of the American Inventor's Protection Act of 1999 (AIPA)—that accelerated the public disclosure of most U.S. patents by two years. We obtain causal estimates by comparing U.S. patents subject to the law change with “twin” European patents which were not. After AIPA's enactment, U.S. patents receive more and faster follow-on citations, indicating an increase in technology diffusion. Technological overlap increases between distant but related patents and decreases between highly similar patents, and patent applications are less likely to be abandoned post-AIPA, suggesting a reduction in duplicative R&D. Firms exposed to one standard deviation longer patent grant delays increased their R&D investment by 4% after AIPA. These findings are consistent with our theoretical framework in which AIPA provisions news shocks about related technologies to follow-on inventors and thus alters their innovation decisions.
    JEL: D23 E02 G24 L26 O34
    Date: 2022–02
  7. By: Mariane Santos Françoso; Ron Boschma; Nicholas Vonortas
    Abstract: The paper contributes to the growing literature on the relationship between relatedness, complexity and regional diversification. It explores regional diversification in an emerging economy, focusing on diversification opportunities of regions with distinct levels of local capabilities. We investigate the importance of relatedness and economic complexity for sectoral and technological diversification in all regions of Brazil during the period 2006-2019. Regions tend to diversify in sectors/technologies requiring similar capabilities to those already available locally. In general, the higher the sector/technology complexity, the lower the probability of diversification. However, in high-complex regions, complexity reverses into a positive force for diversification. Our analysis shows catching-up and diversification prospects vary widely across different types of regions in Brazil.
    Keywords: regional diversification; relatedness; complexity; emerging economies; Brazil
    JEL: O25 O33 R11 O31
    Date: 2022–02
  8. By: Leila Farraj; Aminanur Chaia; Shumaila Yousafzai
    Date: 2022
  9. By: Dinara Alpysbayeva (Norwegian University of Life Sciences, School of Economics and Business); Jozef Konings (Nazarbayev University, Graduate School of Business); Venkat Subramanian (Nazarbayev University, Graduate School of Business); Aigerim Yergabulova (Nazarbayev University, Graduate School of Business)
    Abstract: This paper studies within-firm pay inequality and its impact on firm performance in Kazakhstan. We measure within-firm pay inequality as the wage differential between the top- and the bottom-level job occupations. First, we report that wage inequality is higher in larger firms. This finding is consistent with the theories of differentiated pay schemes and the scope of control. Further, we explore to what extent a rise in firm inequality affects firm performance. Although a higher wage dispersion may serve as a signal to attract more productive or talented workers, we find no evidence to support the idea that incentive-based pay can boost overall firm performance. The negative impact points to rent extraction by top job occupations.
    Keywords: Pay inequality, Job occupations, Performance, Firm size
    JEL: J31 L25 M52
    Date: 2022–03
  10. By: Philippe Aghion (Collège de France); Roland Bénabou (Princeton University); Ralf Martin (Imperial College London); Alexandra Roulet (INSEAD)
    Abstract: We investigate the effects of consumers' environmental concerns and market competition on firms' decisions to innovate in "clean" technologies. Agents care about their consumption and environmental footprint; firms pursue greener products to soften price competition. Acting as complements, these forces determine R&D, pollution, and welfare. We test the theory using panel data on patents by 8,562 automobile-sector firms in 41 countries, environmental willingness-to pay, and competition. As predicted, exposure to prosocial attitudes fosters clean innovation, all the more so where competition is strong. Plausible increases in both together can spur it as much as a large fuel-price increase.
    Keywords: climate change, Competition, Environment, Innovation, Patents, Social Responsibility
    JEL: D21 D22 D62 D64 H23 O30 O31
    Date: 2021–01

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