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on Small Business Management |
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Issue of 2022‒10‒24
fourteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Ron Boschma; ; ; |
| Abstract: | The literature of Evolutionary Economic Geography (EEG) has received little attention in Evolutionary Economics, despite overwhelming evidence that time-space dimensions are crucial to understand economic evolution. This chapter will focus on the relationship between EEG and regional policy. We will discuss how evolutionary principles like proximity, relatedness and path dependency have been used to construct regional innovation policy in the European Union. |
| Keywords: | Evolutionary Economic Geography, regional innovation policy, Smart Specialization, relatedness, complexity |
| JEL: | O25 O38 R11 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2220&r= |
| By: | Behnam Azhdari (Department of Management, Khark Branch, Islamic Azad University, Shohada St. Khark Island, Boushehr, Iran); Jean Bonnet (Normandie Univ, Unicaen, CNRS, CREM, 14000 CAEN, FRANCE); Sébastien Bourdin (EM Normandie Business School, Métis Lab, 9 rue Claude Bloch, 14000 CAEN, FRANCE) |
| Abstract: | While the literature on entrepreneurial ecosystems (EEs) is growing, there is still a scarce literature on the causal effect between the components of the EEs and between the EEs and regional development. Our paper fills this gap and empirically identify the causal relationships between the EEs' components and the causal effect of the EE on regional development. We show that the growth of GDP/Inhabitant in European regions is only directly determined by the creation of new firms with a strong ambition to grow and create many jobs. The perception of regional opportunities and the risk acceptance are primitive points at the origin of most of the crucial nodes of successful entrepreneurial ecosystems in European regions. |
| Keywords: | Entrepreneurial Ecosystem, REDI Components, Causal Models, Bayesian Networks, Bayesian Inference |
| JEL: | C11 L26 M13 R11 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2022-06&r= |
| By: | Louise Lindbjerg; Theodor Vladasel |
| Abstract: | Technical human capital improves firms’ invention outcomes, but generating innovation revenue may require distinct skills in bringing new ideas to market. We argue that former founders are endowed with execution skills, a generalist ability to create and exploit market gaps by acquiring and mobilizing resources, so entrepreneurial human capital enhances innovation in established organizations. Combining register and Community Innovation Survey data from Denmark, we show that entrepreneur hires are associated with higher sales from new products and services. This result is driven by founder hires in middle management, a hierarchical position where broader decision rights and resource access increase execution skills’ effectiveness. Founder hires are more tightly linked to innovation new to the firm or market, rather than world, consistent with our prediction that execution skills help bring incremental improvements to market, but do not necessarily generate radical innovation. Together, our findings suggest that entrepreneurial human capital may help firms appropriate a larger share of the value their knowledge generates. |
| Keywords: | innovation, learning by hiring, entrepreneurship, execution skills, human capital, middle management |
| JEL: | J24 L23 M12 M21 M51 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1309&r= |
| By: | Øivind Anti Nilsen; Arvid Raknerud |
| Abstract: | This paper investigates firm dynamics in the period before, during, and after an event consisting of a first published patent application. The analysis is based on patent data from the Norwegian Industrial Property Office merged with data from several business registers covering a period of almost 20 years. We apply an event study design and use matching to control for confounding factors. The first patent application by a young firm is associated with significant growth in employment, output, assets and public research funding. Moreover, our results indicate that economic activity starts to increase at least three years ahead of the first patent application. However, we find no evidence of additional firm growth after patent approval for successful applicants. Our findings indicate that the existence of a properly functioning patenting system supports innovation activities, especially early in the life cycle of firms. |
| Keywords: | patenting, firm performance, panel data, event study design |
| JEL: | C33 D22 O34 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9927&r= |
| By: | Andreas Lichter (DICE and HHU Düsseldorf); Max Löffler (Maastricht University); Ingo E. Isphording (IZA – Institute for Labor Economics); Thu-Van Nguyen (Stifterverband Essen); Felix Poege (Technology & Policy Research Initiative, Boston University and Max Planck Institute for Innovation and Competition); Sebastian Siegloch (University of Cologne) |
| Abstract: | We study how business taxes affect establishments’ R&D activities. Relying on geocoded panel data targeting the universe of R&D-active establishments in Germany, we exploit around 7,300 changes in the local business tax rate over the period 1987 2013 for identification. Using event study techniques, we find a sizable negative and statistically significant effect of an increase in the local business tax on establishments’ total R&D spending and patents filed. Zooming into the process of innovation production, we uncover substantial heterogeneity in the impact of business taxation for various R&D inputs, among establishment characteristics, and for different types of research projects. |
| Keywords: | corporate taxation, firms, R&D, innovation, patents |
| JEL: | H25 H32 O31 O32 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:202&r= |
| By: | Tatiane de Freitas Cordeiro (FACE/UFMG e Fundação Dom Cabral); Márcia Siqueira Rapini (Cedeplar/UFMG) |
| Abstract: | Within the open innovation paradigm, Corporate Venture (VC) appears as an alternative for large companies to execute their innovation strategy and R&D investments. In this sense, this study investigates whether VC practices undertaken by large companies in Brazil contribute to the fostering of open innovation and the execution of R&D and innovation activities. This was investigated from one of 19 responses to an empirical survey conducted with large companies, gathering national and multinational companies, operating in Brazil. The results indicate that the corporate venture strategy is not always aimed at fostering innovation, since corporations seek startups that have already gone through the most uncertain stages of the R&D process and already have validated products, services and/or solutions. Furthermore, corporate ventures are aimed at incorporating promising businesses with a view to diversifying risk and reaching new markets. |
| Keywords: | Corporate Venture, open innovation, R&D, multinational companies |
| JEL: | G24 M13 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td649&r= |
| By: | Jinhee Kim; Keun Lee; ; |
| Abstract: | This study identifies the characteristics and types of the regional innovation systems (RIS) of regions and cities in emerging economies in comparison to those in advanced economies. It uses the citation data of the US patents filed by 30 regions. Some RIS variables are newly developed, and they include intra-regional, inter-regional, and inter-national sourcing of knowledge and local ownership of innovation. The cluster analysis of these variables enables us to identify four major types of RIS around the world and link them to regional economic performance. The four types are, in the descending order of their per capita income levels, as follows: large, mature RIS characterized by a combination of long cycle technology specialization and high local ownership (Group 1), mixed RIS characterized by a long cycle and low local ownership (Group 2), “strong catch-up†characterized by short cycle and high local ownership (Group 3), and “weak catch-up†characterized by short cycle and low local ownership (Group 4). Groups 3 and 4 include only the regions in emerging world. They similarly specialize in the same short cycle time of technologies (CTT)-based sectors but show different records of economic performance. The key differentiating variable is the degree of local ownership of knowledge, which can be a basis for increasing domestic sourcing of knowledge and sustained catching up. Another important variable is decentralization, of which the level is lower in the strong catch-up group than in the weak catch-up group. In this Group 3, catching up is led by big businesses. Several cities experiencing upgrading, like Moscow, Beijing, and Shanghai, also show an increasing trend of local ownership and centralization. |
| Keywords: | regional innovation systems, innovation, patents, economic growth, economic catch-up |
| JEL: | C23 O31 O32 O33 O50 R11 R58 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2219&r= |
| By: | Demary, Markus; Hagenberg, Anna-Maria; Zdzralek, Jonas |
| Abstract: | For firms' business and investment decisions their access to finance is a critical determinant. In times when access to finance becomes tight, corporations face either higher capital costs or they have to postpone their investment decisions when credit lines are not prolongated. Since business investment is a prerequisite to spur economic growth, access to finance is a critical variable in business cycle stabilization. Therefore, central banks take a close look at the financing conditions of companies, and they have to loosen monetary policy when access to finance becomes tighter. In contrast to the US, where firms rely to a great degree on capital market financing, euro area firms are dominantly funded by banks. For our empirical analysis we use data from the Survey of Access to Finance of Small and Medium-sized Enterprises (SAFE) from the ECB. SAFE is a semi-annual survey and it covers the relevant data on financing conditions from the viewpoint of euro area firms with a focus on SMEs. The first wave started in the first half of 2009. Regression analyses with only three macroeconomic variables (yield on sovereign bonds, GDP growth and unemployment rate) on the percentage of vulnerable firms yield the result of a strong positive correlation with long-term interest rates. This effect is reduced when adding access to finance or the change in the external financing gap to the equation, which are also positively correlated to the vulnerability of SMEs. At the same time, the vulnerability of companies is negatively correlated with GDP growth indicating that in times of economic crisis, the vulnerability is higher than in times of economic boom. However, the coefficient loses its significance, when the change in the financing gap and access to finance were added to the regression. Since these two variables are also dependent on the business cycle, they better explain the vulnerability than GDP. |
| JEL: | E32 E44 E58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkrep:502022&r= |
| By: | Lassi Ahlvik; Inge van den Bijgaart |
| Abstract: | Green innovation is essential for climate change mitigation, but not all innovative projects deliver equal social value. We consider innovator heterogeneity in a model where the policy maker cannot observe innovation quality and directly subsidize the socially most valuable green innovations. We find that carbon pricing works as an innovation screening device; this creates a premium on the optimal carbon price, raising it above the Pigouvian level. We identify conditions for perfect screening and generalize results to screening policies under alternative intellectual property regimes and complementary policies. |
| Keywords: | carbon pricing, green innovation, optimal policy, R&D, screening |
| JEL: | O30 H23 Q55 Q58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9931&r= |
| By: | Fédoua Kasmi (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Ferney Osorio (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Laurent Dupont (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Brunelle Marche (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Mauricio Camargo (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine) |
| Abstract: | This paper explores the way in which academics address the role of innovation spaces in the development of circular economy. Considering their characteristics, objectives and functioning, we assume that innovation spaces can be favorable environments for eco-innovations facilitating the implementation of circular economy strategies. To examine this hypothesis, this paper mobilizes a mixed research method based on bibliometric analysis of keywords and content analysis. The results show that these collaborative environments can: foster sustainable experimental learning, provide methodologies and tools for the co-creation of circular solutions, drive the transition towards sustainable smart cities, foster the creation of new sustainable business models, promote sustainable urban entrepreneurship and facilitate knowledge exchange on circular solutions. However, most of the reviewed literature focuses mainly on their impacts on sustainability and less on the concept of circular economy per se. Consequently, this work provides insights on the potential of these spaces in the circular strategies' implementation. |
| Keywords: | Systematic Literature Review,Sustainability,Innovation Spaces,Eco-Innovation,Circular Economy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03590438&r= |
| By: | Marta Morazzoni; Andrea Sy |
| Abstract: | We document and quantify the effect of a gender gap in credit access on both entrepreneurship and input misallocation in the US. We show that female-owned firms are more likely to be rejected when applying for a loan and have a higher average product of capital, a sign of gender-driven capital misallocation across firms. Calibrating a heterogeneous agents model of entrepreneurship to the US economy, we establish that such gap in credit access explains the bulk of the gender differences in capital allocation across firms, and more than a third of their disparities in entrepreneurial rates. In a counterfactual exercise, we illustrate that eliminating this credit imbalance leads to a 4% increase in output, and that fiscal policies affect differently female and male entrepreneurial margins in the presence of gender gaps in financial access. |
| Keywords: | entrepreneurship, misallocation, aggregate productivity, gender differences, Financial constraints |
| JEL: | O11 E44 D11 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1299&r= |
| By: | Lotfi Mazhoudi (ISGGB - Institut Supérieur de Gestion de Gabès (Université de Gabès)) |
| Abstract: | The research in women entrepreneurship has been developed with the recognition of the growing role of the woman in the economical and social development of the countries. The difference of performance observed between developed and developing countries is justified by the degree of appropriation of "the gender approach" as well as the role of the entrepreneurial environment. To understand how Tunisian women establish their companies, we have tried to prepare a questionnaire after establishing a theoretical framework to set our research objective with respect to the women entrepreneurship issue and to the role of the business environment. The results of this survey which has been conducted on fifty businesswomen during June and July 2019, show that the barriers that they face are linked to gender issues, which makes them work by necessity rather than by opportunity. The sociocultural constraints which impede them, however, are the need to find a balance between family and work, the fear of failure, and the traditional believes that had influenced the choice of the type of their projects. |
| Abstract: | La recherche sur l'entrepreneuriat féminin s'est développée avec la reconnaissance du rôle grandissant de la femme dans le développement économique et social des pays. La différence de performance constatée entre pays développés et pays en voie de développement trouve son explication dans le degré d'appropriation de l'approche « genre » et dans le rôle joué par l'environnement entrepreneurial. Pour comprendre comment les femmes tunisiennes créent leur entreprise, nous avons élaboré un questionnaire après avoir établi un cadre théorique pour situer notre objectif de recherche par rapport à la problématique de l'entrepreneuriat féminin et au rôle de l'environnement entrepreneurial. Les résultats de notre enquête, administrée auprès d'une cinquantaine d'entrepreneures tunisiennes durant les mois de juin et juillet 2019, montrent que les barrières rencontrées par celles-ci sont liées aux questions de genre ce qui fait qu'elles entreprennent par nécessité et non par opportunité. Les contraintes socioculturelles qui les ont freinées sont la nécessité de trouver l'équilibre entre la famille et le travail, la peur de l'échec et les convictions traditionnelles qui ont influencé le choix de la nature de leurs projets. |
| Keywords: | women entrepreneurship,gender,entrepreneurial environment,sociocultural factors,entrepreneuriat féminin,genre,environnement entrepreneurial,déterminants socioculturels. |
| Date: | 2021–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03767467&r= |
| By: | World Bank |
| Keywords: | Agriculture - Agribusiness Private Sector Development - Business Environment Private Sector Development - Private Sector Economics Private Sector Development - Small and Medium Size Enterprises |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:35988&r= |
| By: | Diego A. B. Marconatto; Gaspar A. Peixoto; Emidio G. Teixeira (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Adelar Fochezatto (PUCRS - Pontifícia Universidade Católica do Rio Grande do Sul [Porto Alegre]) |
| Abstract: | We investigate the relationship between women's participation and the growth of 10,445 Brazilian SMEs operating in a widespread economic crisis. Our study is motivated by the disproportional unemployment scores observed among women during the COVID19 pandemic. We used stepwise regression and conditional process analysis to test all our hypotheses. We found that an increase of women employees in the total workforce of SMEs boosts their growth. This indicates that the disproportional spikes in women's unemployment observed during recessions are not only unjust but also harmful to SMEs striving to weather crises. We also identified that these firms grow further by increasing women employees' wages and job tenure, by preferring more women with higher levels of education and longer job tenure, or retaining more educated women who are better paid at the same time. Our findings rebuke the rationale behind the disproportional layoffs of women workers in times of crisis. They indicate that SMEs should sustain their female workforce to increase chances of weathering widespread economic crises. Our results can help alleviate the predicament experienced by women workers during economic crises, and support policies designed to reduce the persistent gender gap in businesses. |
| Keywords: | SME growth,gender performance,gender pay gap,COVID-19 crisis |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03775446&r= |