nep-sbm New Economics Papers
on Small Business Management
Issue of 2023‒03‒06
six papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Playing the innovation subsidy game: experience, clusters, consultancy, and networking in regional innovation support By Rodríguez-Pose, Andrés; Belso-Martinez, Jose Antonio; Díez-Vial, Isabel
  2. Firm-level productivity growth returns of social capital: Evidence from Western Europe By Roberto Ganau; Andres Rodriguez-Pose; ;
  3. Fueling the next boom: Policies for promoting corporate spinoffs in Korea By Yang, Hyun Bong
  4. Who Learns More from Afar? Spatial Empirical Evidence on Manufacturing and Services By Nina Vujanović
  5. Offshoring and its impact on employment By Adriana Peluffo
  6. Barriers to entrepreneurial intention among students of economics and management in Ho Chi Minh City By Thy, Nguyen Vo Thy

  1. By: Rodríguez-Pose, Andrés; Belso-Martinez, Jose Antonio; Díez-Vial, Isabel
    Abstract: Government support to promote firm-level innovation is seen as a crucial factor for economic growth. This support is frequently channeled through firm-level subsidies. Despite their relevance within the policy portfolio, there is an open academic debate on whether subsidies are effective for innovation. This is by no means related to a potential inadequacy of subsidies, but because the mechanisms of assignment may be unsatisfactory. We argue that this may be the case when subsidies are awarded to larger firms with a solid international and innovative trajectory or to those that know how toplay the system, ” rather than to the most deserving firms and projects. To test whether this is the case, we use data from 17, 866 applicants for innovation subsidies managed by the Valencian Institute of Competitiveness. We find that firms with specific knowledge accrued through previous submissions, public funding and grant consultancy or cluster location, are the main beneficiaries of public innovation support, generally at the expense of more promising candidates that lack the know-how to navigate a complex and often flawed process. This inertia gets policy-makers stuck in a sub-optimal assignment system that should be deeply reconsidered.
    Keywords: clusters; consultancy services; innovation policy; networks; previous subsidy experience
    JEL: R14 J01 J1
    Date: 2021–12–01
  2. By: Roberto Ganau; Andres Rodriguez-Pose; ;
    Abstract: We analyse the firm-level labour productivity growth returns of social capital —defined as a synthetic measure of ‘generalised trust’, ‘active participation’, and ‘social norms’— using a large sample of manufacturing firms in France, Germany, Italy, Portugal, and Spain. We find that firms’ labour productivity growth is higher in areas with a better social capital endowment. The positive returns of social capital are, nevertheless, unevenly distributed across firms, with smaller, less productive, less capital-endowed, and low-tech firms benefitting the most from operating in strong social capital ecosystems.
    Keywords: Firm labour productivity growth; Social capital; Manufacturing industry; Western Europe.
    JEL: C36 D24 R10 Z13
    Date: 2023–02
  3. By: Yang, Hyun Bong (Korea Institute for Industrial Economics and Trade)
    Abstract: As the global economic environment is evolving amid the protracted COVID-19 pandemic, minimizing the pandemic’s impact on the sluggish economy and boosting economic sustainability will require yet another boom of corporate spinoffs in Korea. This was the case in the early 2000s, when many venture companies were created. A survey of 202 spinoff companies conducted by KIET found that most of the founders of those early startups were people in their early 40s who leveraged their past work experience, but lacked access to private venture funds, and had limited knowledge of and low utilization of startup support programs. This analytical brief explores what policies the Korean government should pursue to address these issues to foster the next wave of corporate spinoffs and the creation of quality jobs.
    Keywords: venture policy; venture capital; job creation; job growth; employment; employment growth; small and medium-sized enterprises; SMEs; SME policy; startup policy; startups; startup funding; COVID-19; spinoffs; Korea; industrial policy; entrepreneurship
    JEL: L11 L24 L25 L26 L52 L53 M13 O25 O30 O34 O38
    Date: 2021–04–26
  4. By: Nina Vujanović (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This paper investigates spatial dependence of FDI knowledge spillovers in manufacturing and services using spatial panel techniques applied to the 2006-2014 Bureau Van Dijk’s Amadeus firm-level dataset for Croatia and Slovenia. The paper finds diverse results across the two sectors. The distance between regions does not hinder the absorption of foreign knowledge in manufacturing despite the strong market-stealing effects operating within regions as well as spatially. On the other hand, FDI knowledge spillovers decrease service productivity within regions, because of market-stealing effects operating strongly across a smaller geographical scale. However, its impact is lost as knowledge spillovers from more distant neighbours are accounted for, because the poaching of local labour is impeded by distance due to rising costs of labour mobility. The research indicates that for knowledge absorption, geographic distance plays differing roles in manufacturing and services, due to the different nature of the production process.
    Keywords: knowledge spillovers, FDI, spatial econometrics, manufacturing, services
    JEL: F23 L6 L8 L2 O3 O4
    Date: 2023–02
  5. By: Adriana Peluffo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: Usually, in public discussion and academia there is concern about increased integration in the world economy and its impact on employment. While there is a number of studies for developed countries for developing economies these studies are scarce. The aim of this work is to analyze the evidence of offshoring on the labor market for an emerging economy at the firm level. We analyze if there are heterogeneous effects of offshoring. To this aim, we take into account the level of income of the countries of origin of foreign inputs, the technological level of the importing sector, and the export status of offshoring firms. The data source for this work is an unbalanced panel of manufacturing firms for the period 1998-2008 merged to detailed administrative data from the Customs Direction. We estimate a dynamic model using a system generalized method of moments which allows to tackle with rigidities in the labor market as well as the likely endogeneity of the model. The whole picture that emerges seems to be that intermediate imports have a small impact on employment, and when the source is high or middle income countries the impact is positive mainly for firms in low technology intensive sectors while exporting firms and firms in high technology sectors are not affected.
    Keywords: offshoring, employment, economic impact of globalization
    JEL: F1 F6 J2
    Date: 2022–08
  6. By: Thy, Nguyen Vo Thy
    Abstract: This study aims to investigate the effects of barriers on entrepreneurial intention among Economics and Management students in Ho Chi Minh City and then analyze and evaluate the impact of these barriers. The authors used 3 main models: Entrepreneurial Event Model – EEM, Model of Implementing Entrepreneurial Ideas, and Theory of Planned Behavior – TPB. The data were collected from 312 students at Economics and Management universities in Ho Chi Minh City. Next, the authors employed quantitative methods such as descriptive statistics, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), HTMT test, structural equation modeling (SEM), Bootstrapping, and Kruskal - Wallis test using SPSS 20 and AMOS 24 softwares. The results showed that 4 independent variables had an effect on entrepreneurial intention, including Mental Barriers, Market Barriers, Educational Environment Barriers, and Knowledge Barriers. Particularly, Mental Barriers were seen as the most influential barriers to entrepreneurial intention. It was implied that the spirit, knowledge, and business environment were really a concern for students in the start-up stage, and educational background such as knowledge and encouragement of teachers also affected the entrepreneurial intention of Economics and Management students. Additionally, there were 5 groups with statistically significant differences in the students’ Entrepreneurial Intentions: (1) Gender, (2) School year, (3) University, (4) Major, and (5) Parents' careers. The study has filled a research gap by providing important insights into the barriers to entrepreneurial intention among Economics and Management students in Ho Chi Minh City. In practical terms, it helps students recognize obstacles and how to overcome them when making decisions while establishing a business. This study also provides educators and policymakers with solutions and governance implications for driving students' entrepreneurial intentions.
    Date: 2023–01–05

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