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on Small Business Management |
| By: | Leogrande, Angelo; Costantiello, Alberto; Laureti, Lucio |
| Abstract: | In this article we have estimated the value of “Opportunity Driven Entrepreneurship” in Europe. We use data from European Innovation Scoreboard-EIS of the European Commission for 36 countries in the period 2010-2019. We use Panel Data with Fixed Effects, Panel Data with Random Effects, WLS, Pooled OLS, and Dynamic Panel. Our results show that “Opportunity Driven Entrepreneurship” is positively associated, among others, to “Innovation Friendly Environment” and “Turnover Share Large Enterprises”, while it is negatively associated, among others, to “Sales Impacts” and “R&D Expenditure Business Sectors”. |
| Keywords: | Innovation, and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Diffusion Processes; Open Innovation |
| JEL: | O30 O31 O32 O33 O34 |
| Date: | 2022–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114716&r= |
| By: | Nilsen, Øivind Anti (Norwegian School of Economics); Raknerud, Arvid (Statistics Norway) |
| 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: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15529&r= |
| By: | Jeremy Greenwood; Pengfei Han; Hiroshi Inokuma; Juan M. Sanchez |
| Abstract: | This article uses an endogenous growth model to study how the improvements in financing for innovative start-ups brought by venture capital (VC) affect firm innovation and growth. Partial equilibrium results show how lending contracts change as financing efficiency improves, while general equilibrium results demonstrate that better screening and development of projects by VC investors leads to higher aggregate productivity growth. |
| Keywords: | endogenous growth; financial development; innovation; IPO; screening; research and development; startups; venture capital |
| JEL: | E13 E22 G24 L26 O16 O31 O40 |
| Date: | 2022–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:94817&r= |
| By: | Reinhilde Veugelers; Frederic Warzynski |
| Abstract: | A better overview of which firms are most likely to adopt digital technologies and to innovate, and to turn these investments into productivity growth |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:bre:wpaper:node_7983&r= |
| By: | Atiyas,İzak; Dutz,Mark Andrew |
| Abstract: | This paper explores differences and similarities across formal and informal microenterprises inSenegal. It uses a new national sample of more than 500 firms, of which two-thirds are informal and over 95 percentare micro-size, employing five or fewer full-time employees. The analysis finds that formal firms have averageperformance outcomes that are in the range of three to five times higher than informal firms. Formal firms are also morelikely than informal firms on average to possess “good” characteristics, namely assets and uses of digitaltechnologies that are positively correlated with productivity, sales, exporting, and employment. Despitethese average differences, informal firms are highly heterogeneous, with a sizable number similar to formal firmsin terms of both performance outcomes and good characteristics: the share of informal firms in the topproductivity and sales deciles having good characteristics is substantial, and one-third of all firms in thehigh-performance cluster based on a data-driven combination of the four performance variables are informal firms.Importantly, several characteristics that are correlates of better performance (being in the top two clusters) forinformal firms are identical to those for all firms in the high-performance cluster: having electricity, having had aloan, and in terms of uses of digital technologies, having a smartphone and using a mobile phone to communicate withsuppliers and customers. However, a sizable number of high-performance informal firms are lagging in terms of good characteristics. That roughly half of formal firms and noinformal firm had a loan implies that it is possible to be in the top performance cluster even without having access tosuch formal financing. That over half of formal firms in the top cluster as well as in the top decile of productivity andsales use inventory control/point of sales software as a management tool while only one informal firm does is bothindicative of the small number of informal firms that use these technologies and suggestive of the potential forperformance improvements if such technologies were used more widely. |
| Date: | 2022–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10111&r= |
| By: | Tomoya Mori; Jonathan Newton; Shosei Sakaguchi |
| Abstract: | Considering collaborative innovation in patent development, we provide micro-level evidence of knowledge spillovers. Knowledge embodied in a patent is proxied by word pairs appearing in its abstract, while novelty is measured by the frequency with which these word pairs have appeared in past patents. Inventors are assumed to possess the knowledge associated with patents in which they have previously participated. We find that collaboration by inventors with more mutually differentiated knowledge sets is likely to result in patents with higher novelty. |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2210.01392&r= |
| By: | Sam Z. Njinyah (Manchester Metropolitan University, UK); Sally Jones (Manchester Metropolitan University, UK); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The performance of small and medium size enterprises (SMEs) is an important determinant of economic development, especially in developing countries like Cameroon. However, due to financial constraints, SMEs in Cameroon do face significant challenges to exporting, which affect their export performance. Many SMEs develop relationships with financial institutions to benefit from loans to overcome export barriers. However, there is no evidence as to whether such benefits help them overcome the limitations of their financial constraints to improve their export performance. Using data from the World Bank Enterprise Survey 2016 in Cameroon, we examine the moderation effect of loans as a benefit of networks on the relationship between financial constraints and export performance for SMEs in Cameroon using regression analysis. Our results show that financial constraints negatively affect export performance. The moderation effect was significant but negative which means the benefit of network (loans) was not enough to offset the negative effect of financial constraints on export performance. Studies on export barriers and export performance for SMEs in Cameroon are scarce and our research provides some policy and managerial implications to help SME exporting in Cameroon. |
| Keywords: | Export barriers, Lack of finance, Network, Export performance, and Cameroon |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/073&r= |
| By: | Lynda Sanderson; Garrick Wright-McNaughton; Naomitsu Yashiro |
| Abstract: | This paper explores the relationship between adoption of ultra-fast broadband (UFB) and the export propensity of New Zealand firms. Previous literature have shown that the Internet facilitates exports by reducing search costs and informational frictions in establishing trade relationships. However, the role of faster Internet that enables the use of more recent, advanced, data-intensive digital technologies has not been well explored. This paper shows empirically that adoption of fibre broadband is associated with a higher propensity to enter exporting by New Zealand firms, suggesting that faster Internet has an additional role over traditional Internet in facilitating exporting. The paper also shows that firms that were already using the Internet more intensively prior to adopting fibre experience a stronger increase in export propensity following fibre adoption than those with less intensive Internet use, and that the positive relationship between fibre uptake and exporting is primarily observed among services firms. Instrumental variable analysis to assess the causal relationship between fibre uptake and exporting suggests that the higher export entry among fibre users is driven by self-selection of firms with higher export propensity into fibre uptake. |
| Keywords: | Digital capabilities, Export, High-speed Internet |
| JEL: | F14 O33 H54 |
| Date: | 2022–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1730-en&r= |
| By: | Stjepan Srhoj; Alex Coad; Janette Walde |
| Abstract: | Export boosting is a policy agenda in developed and developing countries. Previous work has found that a small number of Superstars contribute disproportionally to the economy’s overall exports. Differently from Superstars, this study is the first to define high growth exporters (HGXs), provide their economic importance and depict their micro-level anatomy. By tracking HGXs in Croatia for over a quarter of a century, 44 out of 100 Superstars in 2019 were previously HGXs. Industry-wise, HGXs are concentrated in manufacturing, information and communication technology, transportation and storage sectors. HGXs are located in higher export active regions, neighboring advanced markets. HGXs represent only 0.5% of all firms and 18% of high growth firms (HGFs) in the economy, but are responsible for about 25% of new exports, and 5% of new jobs. During their growth episode, HGXs hire more employees from technology intensive industries with previous experience in exporting. They often hire on a single year work contract, and more frequently send new employees to work abroad. HGXs have the highest number of new products, and the concentration of HGXs’ main export products decreases over time, thus, the growth is driven by multiple products and the simultaneous increase in the number of new export markets. HGXs export to closer markets than Superstars, but to more distant markets than other HGFs and exporters who tend to be more active in less developed markets. HGXs tend to increase their presence in the EU Single Market, introduce new products and substantially increase their unit price. |
| Keywords: | exporting, firms, high growth firms, high growth exporters |
| JEL: | F2 D22 L1 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2022-15&r= |
| By: | Bruhn,Miriam; Piza,Caio |
| Abstract: | This paper tests whether providing more information on business practices can lead firms toseek out advice and improve their practices. The authors collaborated with a business advice provider in Brazil toimplement a randomized experiment with 866 small firms. The treatment groups received different versions of aninformation sheet that benchmarked business practices to other firms and listed five practices to improve. Receivingany information sheet increased demand for business advice by 7 percentage points, relative to 21 percent in thecontrol group in the first six months, suggesting that information matters for seeking out advice. However, thecontrol group catches up over the next 12 months. The intervention did not affect business practices andperformance outcomes, but it decreased the fraction of firms that report being happy with their performance. |
| Date: | 2022–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10183&r= |