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on Small Business Management |
| By: | Michael Fritsch (Friedrich Schiller University Jena, Germany); Maria Greve (Utrecht University, The Netherlands, and Friedrich Schiller University Jena, Germany); Michael Wyrwich (University of Groningen, The Netherlands, and Friedrich Schiller University Jena, Germany) |
| Abstract: | We describe and compare the development trajectories of two German regions, South Saxony and Mecklenburg, with a special focus on entrepreneurship and innovation. South Saxony has a long history of self-employment and knowledge generation that results in a persistent culture of innovative entrepreneurship. In Mecklenburg, such a culture did never emerge. Differences between the entrepreneurial ecosystems in the two regions especially pertain to the level of knowledge production and its link to new business formation in innovative and knowledge-intensive industries. |
| Keywords: | Entrepreneurship, entrepreneurial ecosystems, economic history, culture, regional development |
| JEL: | L26 M13 O1 O3 R11 |
| Date: | 2022–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2022-012&r=sbm |
| By: | Ganau, Roberto; Rodríguez-Pose, Andrés |
| Abstract: | We analyse the investment-to-cash flow relationship in Europe using a sample of manufacturing small- and medium-sized enterprises (SME) over the period 2009–2016. We investigate the effect of regional institutional quality on the investment-to-cash flow sensitivity, finding that, although credit constraints remain a serious problem for European SMEs, high-quality regional institutions contribute to mitigate the dependency on internally-generated resources to finance new investments. Improvements in local institutional quality can therefore facilitate SMEs’ access to credit–e.g. through inter-firm trade credit relationships –, but are insufficient to overcome the credit restrictions faced by European SMEs. |
| Keywords: | credit constraints; small- and medium-sized firms; manufacturing industry; institutional quality; Europe |
| JEL: | C23 R50 |
| Date: | 2022–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:112487&r=sbm |
| By: | Caliendo, Marco (University of Potsdam); Kritikos, Alexander S. (DIW Berlin); Stier, Claudia (University of Potsdam) |
| Abstract: | Predicting entrepreneurial development based on individual and business-related characteristics is a key objective of entrepreneurship research. In this context, we investigate whether the motives of becoming an entrepreneur influence the subsequent entrepreneurial development. In our analysis, we examine a broad range of business outcomes including survival and income, as well as job creation, expansion and innovation activities for up to 40 months after business formation. Using self-determination theory as conceptual background, we aggregate the start-up motives into a continuous motivational index. We show – based on a unique dataset of German start-ups from unemployment and non-unemployment – that the later business performance is better, the higher they score on this index. Effects are particularly strong for growth oriented outcomes like innovation and expansion activities. In a next step, we examine three underlying motivational categories that we term opportunity, career ambition, and necessity. We show that individuals driven by opportunity motives perform better in terms of innovation and business expansion activities, while career ambition is positively associated with survival, income, and the probability of hiring employees. All effects are robust to the inclusion of a large battery of covariates that are proven to be important determinants of entrepreneurial performance. |
| Keywords: | entrepreneurship, push and pull theories, start-up motivation, survival, job creation, firm growth, innovation |
| JEL: | L26 C14 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15793&r=sbm |
| By: | Sam Njinyah (Manchester Metropolitan University, UK); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The purpose of this paper is to examine the relationship between a firm starting operation informally and its future innovation and whether this relation is moderated by institutional support (having access to finance from financial institutions to run their business). Data from the World Bank Enterprise Survey on 30 Eastern European and South-East Asian countries were analysed using probit regression analysis. The findings show that there is a positive significant relationship between firms that start operations informally and the firms’ innovation and that such effect persists over time. We found that this relationship is stronger if the firms can gain access to finance to expand their business activities. Finally, our result shows that such a relationship is based on the type of innovation being pursued by the firm. By examining the moderation effect of access to finance on starting a business informally, we provide an alternative explanation to policymakers on how to deal with informal firms to benefit from their contribution to growth. |
| Keywords: | Informality/unregistered firms, Innovation, Institutions, and Eastern European and South East Asia |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/099&r=sbm |
| By: | Kox, Henk L.M. |
| Abstract: | The paper models the links between public and firm-level knowledge processes. The knowledge-capital (KC) theory assumes that firms use their private knowledge assets to set up foreign subsidiaries. Countries with large outward FDI stocks should have a relative abundance of proprietary knowledge assets. This has not yet been adequately tested. Our model allows to test it by concentrating on national public knowledge inputs that are encapsulated in proprietary knowledge assets of firms. Using a rich international dataset we confirm the basic tenet of the KC theory and show the important role of public knowledge production for outward FDI. |
| Keywords: | Foreign Direct Investment,Knowledge Transfer and Innovation,Knowledge Assets,Public Knowledge Creation,Multinational Companies,Empirical test,world coverage 2000-2020), |
| JEL: | O34 O31 D22 D83 F23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:266495&r=sbm |
| By: | Kuosmanen, Natalia; Maczulskij, Terhi |
| Abstract: | Abstract This paper investigates the importance of firm dynamics, including entry and exit and the allocation of carbon emissions across firms, on the green transition. Using the 2000–2019 firm-level register data on greenhouse gas emissions matched with the Financial Statement data in the Finnish manufacturing sector, we examine the sources of carbon-productivity growth and assess the relative contributions of structural change and firm dynamics. We find that continuing firms were the main drivers of carbon productivity growth whereas the contribution of entering and exiting firms was negative. In addition, the allocation of emissions across firms seems to be inefficient; its impact on carbon productivity growth was negative over the study period. Moreover, we find that there is a positive relationship between labor-intensive firms and carbon productivity but that firms with a larger market share tend to be less productive in terms of carbon use. |
| Keywords: | Carbon productivity, Decomposition, Firm dynamics, Firm-level data, Manufacturing |
| JEL: | D24 L60 Q54 |
| Date: | 2022–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:rif:wpaper:99&r=sbm |
| By: | Pierfederico Asdrubali; Issam Hallak; Péter Harasztosi |
| Abstract: | In this paper we provide estimates of financial constraints in all EU sectors. Our empirical strategy consists in using the Orbis firm-level dataset to construct financial constraint measures for each of the firms in our sample, and then aggregate the results either by NACE code, or by business similarity. We use two main – somewhat complementary – financial constraint indices proposed by Ferrando et al (2015), and then submit them to a battery of robustness tests, including the alternative financial constraints estimators developed by Kaplan and Zingales (1997), Whited and Wu (2006), and Hadlock and Pierce (2010). We also establish correlations between a sector’s degree of financial constraints and other sectoral characteristics, such as firm size, TFP, capital intensity, and innovativeness. Among the 10 Target Sub-sectors identified as vulnerable a priori to financial constraints, smaller firms in Marine Fishing and larger firms in Urban Regeneration and Agricultural SMEs stand out as financially constrained by one of our measures. Larger firms in Urban Regeneration even appear in the top ten financially constrained 2-digit NACE sectors (Divisions). When ranking the 88 Target Sectors, NACE Divisions in mining, sports, transports and media and cultural services stand out as particularly financially constrained. A possible explanation is that activities like mining and sports do not belong to public goods typically supported by public grants – or at least not enough in proportion to the massive investments required. As for media and cultural services, these activities suffer from the “curse of intangibles” – the limited access to finance due to the difficulty of valuing the activities and the underlying assets. More generally, tighter sectoral financial constraints tend to be associated with a lower firm size, a capital intensity much higher than average, and a total factor productivity lower than average. Another policyrelevant finding is that different factors for financial constraints apply to different industries: servicesdriven industries are affected by different financially constraining factors than manufacturing or resource extraction related industries. Finally, an unweighted averaging of our measures across countries brings up partially different results than the standard weighted averaging, thus showing that smaller countries may suffer from financial constraints drivers different from larger countries. |
| JEL: | G32 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:euf:dispap:173&r=sbm |
| By: | Davydova, Daria (Ecole Polytechnique Federale de Lausanne); Fahlenbrach, Rudiger (Ecole Polytechnique Federale de Lausanne and Swiss Finance Institute); Sanz, Leandro (Ohio State University); Stulz, Rene M. (Ohio State University and ECGI, Brussels) |
| Abstract: | From 2010 to 2021, 639 US VC-funded firms achieved unicorn status. We investigate why there are so many unicorns and why controlling shareholders give investors privileges to obtain unicorn status. We show that unicorns rely more than other VC-funded firms on organizational capital as well as network effects and the internet. Unicorn status enables startups to access new sources of capital. With this capital, they can invest more in organizational intangible assets with less expropriation risk than if they were public. As a result, they are more likely to capture the economies of scale that make their business model valuable. |
| JEL: | G24 G32 G34 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:ohidic:2022-12&r=sbm |
| By: | Alexandre, Fernando (University of Minho); Chaves, Miguel (University of Minho); Portela, Miguel (University of Minho) |
| Abstract: | This paper investigates the effect of awarding a second investment grant to the same firm. We implement a Regression Discontinuity Design strategy using a very rich firm-level administrative database, which allows us to link applications to grants and their scores to firms' performance. Overall, our results show a positive and significant impact of an investment grant booster shot on firms' labour productivity. This effect is significantly larger than the effect of a single grant. A more granular analysis shows a strong impact of awarding a second grant to small-sized firms. However, we found no effect on micro, medium and large-sized firms. Our results suggest that the characteristics of the targeted firms, namely firm size, matter for the effectiveness of awarding a second grant to the same firm. |
| Keywords: | industrial policy, investment grants, multiple treatments, productivity |
| JEL: | D22 H25 L25 L52 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15779&r=sbm |
| By: | Georgios Tsiachtsiras; Deyun Yin; Ernest Miguelez (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Rosina Moreno |
| Abstract: | This paper explores the effect of the High Speed Rail (HSR) network expansion on local innovation in China during the period 2008-2016. Using exogenous variation arising from a novel instrument - courier's stations during the Ming dynasty, we find solid evidence that the opening of a HSR station increases cities' innovation activity. We also explore the role of inter-city technology diffusion as being behind the surge of local innovation. To do it, we compute least-cost paths between city-pairs, over time, based on the opening and speed of each HSR line, and obtain that an increase in a city's connectivity to other cities specialized in a specific technological field, through the HSR network, increases the probability for the city to specialize in that same technological field. We interpret it as evidence of knowledge diffusion. |
| Keywords: | High speed rail, Innovation, Technology diffusion, Patents, Specialization |
| Date: | 2022–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03891705&r=sbm |
| By: | Eloi Bigas (Siris Academic); Nicandro Bovenzi (Siris Academic); Enric Fuster (Siris Academic); Francesco A. Massucci (Siris Academic); Hugo Hollanders (Maastricht University); Monika Matusiak (European Commission - JRC); Ramojus Reimeris (European Commission - JRC) |
| Abstract: | Armenia, Azerbaijan, , Georgia,the Republic of Moldova and Ukraine have committed to develop place-based Smart Specialisation Strategies for research and innovation with the objective of enhancing their competitiveness and drive structural change of the economies. The purpose of this study is to contribute to evidence-informed research and innovation policy, in particular the development of Smart Specialisation Strategies. The study presents a solid basis for these processes in the Eastern Partnership region by offering an extensive quantitative analysis of national-level potential in the economy, innovation, science and technology. A limited number of economic and innovation (E&I) specialisation domains matched with relevant scientific and technological (S&T) specialisation domains are identified for each Eastern Partnership country. The study proposes a new method to identify concordances between the EI and ST specialisation domains so that they can be used to inform ongoing Smart Specialisation processes in the Eastern Partnership countries with available international data. Interested countries need to compliment this analysis with the relevant national data sources and other useful information resulting from the qualitative expert inputs and stakeholder engagement. The report also indicates the evidence-informed areas for knowledge-based economic cooperation to support bilateral and region-wide initiatives. |
| Keywords: | Smart Specialisation, innovation policy, quantitative analysis, mapping, EU Eastern Partnership |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc128524&r=sbm |
| By: | Max Berre (Audencia Business School); Benjamin Le Pendeven (Audencia Business School) |
| Abstract: | How do business-cycles impact startup-valuations? While several studies explore VC startupecosystems and pre-money valuations, relatively-few delve deeper into the role of macro-level economic factors in influencing those startup deals valuations. Using a dataset of 1,089 venturecapital investments in European Union and European Economic Area markets, this article examines macroeconomic, cyclical and macro-sectoral influences on VC startups pre-money VC valuations. Our findings show that business-cycles impact startup-valuation both directly and indirectly. Beyond DCF factors, startup-valuations are impacted via by business-cycles directly, and via local venture-capital market-size. By using a Structural Equation Model approach, our findings contribute to entrepreneurship and financial-intermediary literature by exploring indirect and endogenous relationship possibilities finding that most determinants are transmission-channels rather than independent drivers. Our findings effectively tie-together startup-valuations, intermediary markets, and macroeconomic determinants. |
| Keywords: | Valuation Startup Venture Capital Entrepreneurial Finance Business-cycle Structural Equation Model,Valuation,Startup,Venture Capital,Entrepreneurial Finance,Business-cycle,Structural Equation Model |
| Date: | 2022–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03872889&r=sbm |
| By: | Shah J Miah |
| Abstract: | With the advancement in the marketing channel, the use of e-commerce has increased tremendously therefore the basic objective of this study is to analyze the impact of business analytics and decision support systems on e-commerce in small and medium enterprises. Small and medium enterprises are becoming a priority for economies as by implementing some policies and regulations these businesses could encourage gain development on an international level. The objective of this study is to analyze the impact of business analytics and decision support systems on e-commerce in small and medium enterprises that investigate the relationship between business analytics and decision support systems in e-commerce businesses. To evaluate the impact of both on e-commerce the, descriptive analysis approach is adopted that reviews the research of different scholars who adopted different plans and strategies to predict the relationship between e-commerce and business analytics. The study contributes to the literature by examining the impact of business analytics in SMEs and provides a comprehensive understanding of its relationship with the decision support system. After analyzing the impact of business analytics and decision support system in SMEs, the research also highlights some limitations and provide future recommendations that are helpful to overcome these limitations. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2212.00016&r=sbm |
| By: | Dörr, Julian Oliver |
| Abstract: | Theory suggests that new market entrants play a special role for the creation of new technological pathways required for the development and diffusion of more sustainable forms of production, consumption, mobility and housing. Unconstrained by past technological investments, entrants can introduce more radical environmental innovations than incumbent firms whose past R&D decisions make them locked into path-dependent trajectories of outdated technologies. Yet, little research exists which provides empirical evidence on new ventures' role in the technological transition towards decarbonization and dematerialization. This is mainly because patenting is rare among start-ups and also no historical track record about their R&D investments exists, both data sources commonly used to determine a company's technological footprint. To enable the identification of clean technology-oriented market entrants and to better understand their role as adopters and innovators for sustainable market solutions, this paper presents framework that systematically maps new ventures' business models to a set of well-defined clean technologies. For this purpose, the framework leverages textual descriptions of new entrants' business summaries that are typically available upon business registration and allow for a good indication of their technological orientation. Furthermore, the framework uses textual information from patenting activities of established innovators to model semantic representations of technologies. Mapping company and technology descriptions into a common vector space enables the derivation of a fine-granular measureof entrants' technological orientation. Applying the framework to a survey of German start-up firms suggests that clean technology-oriented market entrants act as accelerators of technical change: both by virtue of their existing products and services and through a high propensity to introduce additional environmental innovations. |
| Keywords: | Clean technologies,technological orientation,environmental innovation,sustainable entrepreneurship,text modeling,natural language processing |
| JEL: | C38 O13 Q55 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22057&r=sbm |
| By: | Foronda, Carlos; Beverinotti, Javier |
| Abstract: | This study quantifies the impact of process and product innovation on employment growth in Bolivia by using microdata from a survey on innovation conducted in Bolivia in 2016. Following the model of Harrison, Jaumandreu, Mairesse, and Peters (2008) and the adaptations for Latin America of Crespi and Tacsir (2013) and Elejalde, Giuliodori, and Stucchi (2015), we demonstrate that employment growth is explained by product innovation. On the other hand, we find no evidence of a displacement effect due to process innovation. With respect to innovation and work composition, we observe that the reation of qualified employment is slightly favored over that of unqualified employment. |
| JEL: | D02 O12 O14 O31 O33 O40 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:11626&r=sbm |
| By: | Lisa D. Cook; Matt Marx; Emmanuel Yimfor |
| Abstract: | We analyze determinants of access to venture capital for Black founders of high-growth startups. We combine image- and name-processing algorithms with clerical review to identify race for over 100,000 startup founders “at risk” for venture funding. Black founders raise roughly one-third as much venture capital in the five years after founding vs. other startups formed in the same year, industry, and state. What explains the gap? We attribute about a third of the gap to four factors: Black startups have smaller founding teams; Black founders are less likely to have worked at the same companies or attended the same schools as investors who fund startups in the same industry and geography; Black startups are less likely to be located in geographies with plentiful venture capital, and Black startups are less likely to have a patent. We then bound our estimates of the funding gap and show that, to explain the gap, omitted variables would have to be nearly four times as important as the variables we fix. The funding gap is not statistically different from zero in later funding stages (post Series B), suggesting that some investors initially hold—but later amend—incorrect beliefs about Black-founded startups. We also exploit the hiring of Black partners and show that they are more likely to fund successful Black startups, consistent with segmented networks. |
| JEL: | G24 M13 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30682&r=sbm |
| By: | Julian Di Giovanni (Federal Reserve Bank of New York, CEPR - Center for Economic Policy Research - CEPR); Andrei A Levchenko (University of Michigan System, CEPR - Center for Economic Policy Research - CEPR, NBER - National Bureau of Economic Research [New York] - NBER - The National Bureau of Economic Research); Isabelle Mejean (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR) |
| Abstract: | This paper uses a dataset covering the universe of French firm-level value added, imports, and exports over the period 1995-2007 and a quantitative multi-country model to study the international transmission of business cycle shocks at both the micro and the macro levels. Because the largest firms are the most likely to trade internationally, foreign shocks are transmitted to the domestic economy primarily through the large firms. We first document a novel stylized fact: larger French firms are significantly more sensitive to foreign GDP growth. We then implement a quantitative framework calibrated to the full extent of the observed heterogeneity in firm size, exporting, and importing. We simulate the propagation of foreign shocks to the French economy and report one micro and one macro finding. At the micro level heterogeneity across firms predominates: 45 to 75% of the impact of foreign fluctuations on French GDP is accounted for by the "foreign granular residual"-the term capturing the larger firms' greater responsiveness to the foreign shocks. At the macro level, firm heterogeneity attenuates the impact of foreign shocks, with the GDP responses 10 to 20% larger in a representative firm model compared to the baseline model. |
| Keywords: | Granularity, Shock transmission, Aggregate fluctuations, Input linkages, International trade |
| Date: | 2022–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03880697&r=sbm |
| By: | Altman, Edward I.; Balzano, Marco; Giannozzi, Alessandro; Srhoj, Stjepan |
| Abstract: | SME default prediction is a long-standing issue in the finance and management literature. Proper estimates of the SME risk of failure can support policymakers in implementing restructuring policies, rating agencies and credit analytics firms in assessing creditworthiness, public and private investors in allocating funds, entrepreneurs in accessing funds, and managers in developing effective strategies. Drawing on the extant management literature, we argue that introducing management- and employee-related variables into SME prediction models can improve their predictive power. To test our hypotheses, we use a unique sample of SMEs and propose a novel and more accurate predictor of SME default, the Omega Score, developed by the Least Absolute Shortage and Shrinkage Operator (LASSO). Results were further confirmed through other machine-learning techniques. Beyond traditional financial ratios and payment behavior variables, our findings show that the incorporation of change in management, employee turnover, and mean employee tenure significantly improve the model's predictive accuracy. |
| Keywords: | Default prediction modeling,small and medium-sized enterprises,machine learning techniques,LASSO,logit regression |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1207&r=sbm |
| By: | Filippo Marchesani; Francesca Masciarelli |
| Abstract: | This paper explores the role of local knowledge spillover and human capital as a driver of crowdfunding investment. The role of territory has already been studied in terms of campaign success, but the impact of territory on the use of financial sources like equity crowdfunding is not yet known. Using a sample of 435 equity crowdfunding campaigns in 20 Italian regions during a 4-year period (from 2016 to 2019), this paper evaluates the impact of human capital flow on the adoption of crowdfunding campaigns. Our results show that inbound knowledge in the region, measured in terms of ability to attract national and international students, has a significant effect on the adoption of crowdfunding campaigns in the region itself. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2211.16984&r=sbm |
| By: | Serenella Caravella; Valeria Cirillo; Francesco Crespi; Dario Guarascio; Mirko Menghini |
| Abstract: | The digital transformation is an important driver of long-run productivity growth and, as such, it has the potential to promote a more inclusive and sustainable growth. However, digital capabilities, crucial to develop and govern new digital technologies, are unevenly distributed across European regions increasing the risk of divergence and polarization. By taking advantage of a set of original indicators capturing the level of digital skills in the regional workforce, this work analyzes the factors shaping the process of digital skill accumulation in the EU over the period 2011-2018. Relying on transition probability matrices and dynamic random effects probit models, we provide evidence of a strong and persistent regional polarization in the adoption and deployment of digital skills. Further, we investigate whether European Funds (European Regional Development Fund, Cohesion Funds, and European Social Funds) are capable to shape the digitalization process and to favor regional convergence |
| Keywords: | Digital transition; Skills; Labour markets; Persistence; Regional development; EU policies |
| JEL: | O14 O30 O38 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:sap:wpaper:wp227&r=sbm |
| By: | Edward I. Altman; Marco Balzano; Alessandro Giannozzi; Stjepan Srhoj |
| Abstract: | SME default prediction is a long-standing issue in the finance and management literature. Proper estimates of the SME risk of failure can support policymakers in implementing restructuring policies, rating agencies and credit analytics firms in assessing creditworthiness, public and private investors in allocating funds, entrepreneurs in accessing funds, and managers in developing effective strategies. Drawing on the extant management literature, we argue that introducing management- and employee-related variables into SME prediction models can improve their predictive power. To test our hypotheses, we use a unique sample of SMEs and propose a novel and more accurate predictor of SME default, the Omega Score, developed by the Least Absolute Shortage and Shrinkage Operator (LASSO). Results were further confirmed through other machine-learning techniques. Beyond traditional financial ratios and payment behavior variables, our findings show that the incorporation of change in management, employee turnover, and mean employee tenure significantly improve the model’s predictive accuracy. |
| Keywords: | Default prediction modeling; small and medium-sized enterprises; machine learning techniques; LASSO; logit regression |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2022-19&r=sbm |
| By: | Lee G. Branstetter; Guangwei Li; Mengjia Ren |
| Abstract: | Are Chinese industrial policies making the targeted Chinese firms more productive? Alternatively, are efforts to promote productivity undercut by efforts to maintain or expand employment in less productive enterprises? In this paper, we attempt to shed light on these questions through the analysis of previously underutilized microdata on direct government subsidies provided to China’s publicly traded firms. We categorize subsidies into different types. We then estimate total-factor productivity (TFP) for Chinese listed firms and investigate the relationship between these estimates of TFP and the allocation of government subsidies. We find little evidence that the Chinese government consistently “picks winners”. Firms’ ex-ante productivity is negatively correlated with subsidies received by firms, and subsidies appear to have a negative impact on firms’ ex-post productivity growth throughout our data window, 2007 to 2018. Neither subsidies given out under the name of R&D and innovation promotion nor industrial and equipment upgrading positively affect firms’ productivity growth. On the other hand, we find a positive impact of subsidy on current year employment, both for the aggregated and employment-related subsidies. These findings suggest that China’s increasingly prescriptive industrial policies may have generated limited effects in promoting productivity. |
| JEL: | O25 O32 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30699&r=sbm |
| By: | Richard A. L. Jones (The University of Manchester, The Productivity Insitute) |
| Keywords: | innovation, science, UK policy, productivity, research and development |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:anj:ppaper:014&r=sbm |
| By: | Riadh Ben Jelili (LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - IMT - Institut Mines-Télécom [Paris] - IBSHS - Institut Brestois des Sciences de l'Homme et de la Société - UBO - Université de Brest - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris]) |
| Abstract: | Without claiming to be a comprehensive treatment of all relevant issues related to the firm productivity analysis, this note aims to investigate some areas of inquiry in this field where firm level data are most valuable, and to survey the more recent econometric evidence for Arab countries. |
| Date: | 2022–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03840600&r=sbm |
| By: | POSTI, LOKESH; KHOLIYA, MAMTA; POSTI, AKHILESH KUMAR |
| Abstract: | The study investigates the differential impact of various sources of finance on informal firm performance. In the informal sector, where access to finance is limited, we investigate how productivity varies with different sources of finance. Given the data limitations, a pseudo-panel data design was used by combining the three only available, independent cross-sectional surveys conducted by the National Sample Survey Office between 1999-2000 and 2015-16. Using formal and informal credit as two different sources of finance and total factor productivity (TFP) as the primary measure of firm performance, we find a positive relationship among them across all major industries; however, the impact of formal finance was higher than informal credit. Our results stand robust against alternative performance measures. Additionally, to address endogeneity concerns, dynamic panel data analysis was adopted. Obtained findings convey essential policy implications for intensification of financial inclusion and financial literacy. |
| Keywords: | Informal Sector, Finance, Credit, Total Factor Productivity, Pseudo Panel, India |
| JEL: | D2 L21 L25 M2 O14 |
| Date: | 2022–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115550&r=sbm |
| By: | Christoph Albert; Andrea Caggese; Beatriz González; Victor Martin-Sanchez |
| Abstract: | We study entry into entrepreneurship during the COVID-19 recession of 2020 using new data from an extensive survey of more than 24, 000 Spanish households, conducted between June and November 2020. We find that while the overall decline in the startup rate in 2020 was large, and of a similar magnitude as that during the Great Recession, the differential impact depending on ex ante income was starkly different. During 2020, the drop in firm entry was entirely concentrated among low -and medium- income households. We show that the entrepreneurship gap between these households and their high-income counterparts is not directly explained by social distancing, since it is mostly driven by the sectors not directly affected by lockdown measures, and it is larger among households that did not suffer a negative income shock during the pandemic. We instead find evidence indicating that high-income households performed relatively better during the COVID-19 recession because they had the means to exploit new business opportunities, thanks to their larger wealth and better access to external finance. |
| Keywords: | Recessions, financial crisis, entrepreneurship, firm dynamics, coronavirus, COVID-19 |
| JEL: | E20 E32 D22 J23 M13 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1852&r=sbm |
| By: | Max Berre; Benjamin Le Pendeven |
| Abstract: | How do business-cycles impact startup-valuations? While several studies explore VC startupecosystems and pre-money valuations, relatively-few delve deeper into the role of macro-level economic factors in influencing those startup deals valuations. Using a dataset of 1,089 venturecapital investments in European Union and European Economic Area markets, this article examines macroeconomic, cyclical and macro-sectoral influences on VC startups pre-money VC valuations. Our findings show that business-cycles impact startup-valuation both directly and indirectly. Beyond DCF factors, startup-valuations are impacted via by business-cycles directly, and via local venture-capital market-size. By using a Structural Equation Model approach, our findings contribute to entrepreneurship and financial-intermediary literature by exploring indirect and endogenous relationship possibilities finding that most determinants are transmission-channels rather than independent drivers. Our findings effectively tie-together startup-valuations, intermediary markets, and macroeconomic determinants. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2211.16151&r=sbm |
| By: | FABBRI Emanuele; GERUSSI Elisa (European Commission - JRC); HOLLANDERS Hugo; SINJARI Isida |
| Abstract: | The mapping exercise described in this technical report contributes to gather evidence based information as a basis to select and define the priority areas of the Smart Specialisation Strategy of Albania. The commitment of Albania in the Smart Specialisation process started in 2016, under the Ministry of Education, Sports and Youth, and currently strongly supported by the Prime Minister Office. The quantitative analysis was started end-2020 and finalized in 2021, and was followed by the qualitative analysis that was closed end-2022. The qualitative analysis refined the results of the quantitative mapping leading to the identification of five preliminary priority domains for the Smart Specialisation Strategy. Both quantitative and qualitative diagnostic stages dealt with relevant challenges related to data availability in the first case, and difficulties in reaching out with the stakeholders of the priority areas selected, for a number of reasons including mistrust, post-Covid effects and related constraints, as well as lack of information on Smart Specialisation. Further exploration will be the goal of the next Entrepreneurial Discovery Process that is expected to be launched by the end of 2022. |
| Keywords: | Smart Specialisation, S3 Framework, Western Balkans, mapping, innovation, Neighborhood and Enlargement region, innovation stakeholders, quantitative analysis, economic potential, innovation potential, scientific and technological potential |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc130660&r=sbm |
| By: | MASSUCCI Francesco; SERI Alessandro |
| Abstract: | This study work aims at improving the GLORIA project’s understanding of the alignment between private firms’ research, development & technological innovation (RD&TI) activities and SDGs. To accomplish such a goal, textual descriptions of single RD&TI records produced by the companies featured in the scoreboard will be analysed by means of different Natural Language Processing (NLP) techniques and classified in accordance with potential SDG of interest. Specifically, patent descriptions, publication abstracts and summaries of research projects funded by the European commission via the H2020 Framework Programme are analysed (see chapter 2. Data Sources) and linked with potential SDGs of concern by means of keyword-based and Deep Learning textual classifiers. |
| Keywords: | SDG, innovation, Scoreboard |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc130479&r=sbm |