|
on Small Business Management |
|
Issue of 2023‒03‒13
twelve papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Bergeaud, Antonin; Schmidt, Juliane; Zago, Riccardo |
| Abstract: | When a technology becomes the new standard, the firms that are leaders in producing this technology have a competitive advantage. Matching the semantic content of patents to standards and exploiting the exogenous timing of standardization, we show that firms closer to the new technological frontier increase their market share and sales. In addition, if they operate in a very competitive market, these firms also increase their R&D expenses and investment. Yet, these effects are temporary since standardization creates a common technological basis for everyone, which allows followers to catch up and the economy to grow. |
| Keywords: | standardization; patents; competition; innovation; text mining |
| JEL: | L15 O31 O33 |
| Date: | 2022–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118031&r=sbm |
| By: | Bergeaud, Antonin; Guillouzouic, Arthur; Henry, Emeric; Malgouyres, Clement |
| Abstract: | Introducing a new measure of scientific proximity between private firms and public research groups and exploiting a multi-billion euro financing program of academic clusters in France, we provide causal evidence of spillovers from academic research to private sector firms. Firms in the top quartile of exposure to the funding shock increase their R&D effort by 20% compared to the bottom quartile. We exploit reports produced by funded clusters, complemented by data on labor mobility and R&D public-private partnerships, to provide evidence on the channels for these spillovers. We show that spillovers are driven by outsourcing of R&D activities by the private to the public sectors and, to a lesser extent, by labor mobility from one to the other and by informal contacts. We discuss the policy implications of these findings. |
| Keywords: | knowledge spillovers; policy instruments; technological distance |
| JEL: | O32 O38 R12 |
| Date: | 2022–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118032&r=sbm |
| By: | Danilo Bertoni; Laure Latruffe (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Daniele Cavicchioli |
| Abstract: | The impact of business transfer on family business performance is widely explored in the literature but is neglected for agriculture although family farms are key players in the economy. We investigate whether the succession changes the economic performance of family firms for Italian family farms during the period 2008–2014. Our results show that succession on these family businesses has a negative effect on their economic performance related to capital, due to an increase in capital after succession. One policy implication is that support for investment by new farmers should be improved. |
| Keywords: | Family business, Succession, Economic performance, Propensity score matching, PSM, Italian farms |
| Date: | 2023–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03967915&r=sbm |
| By: | Antoine Dechezleprêtre; Luis Díaz; Milenko Fadic; Guy Lalanne |
| Abstract: | The automotive sector is important across OECD countries in terms of value-added and R&D, but is also heavily affected by the green and the digital transformations. This paper offers a novel and holistic view of the automotive sector and its surrounding ecosystem based on a combination of Inter-Country Input-Output (ICIO) tables, patent data, mergers and acquisitions (M&A) transactions, cross-country micro-distributed data and firm-level balance sheet data. It identifies the boundaries of this industrial ecosystem including connected sectors (e.g. upstream and downstream) as well as knowledge and technology providers (e.g. universities or the digital industry). The paper documents emerging trends at the geographical and technological levels and provides a comprehensive assessment of the ecosystem’s changing microstructure, with a growing role of young and digital-intensive companies. Finally, it provides recommendations for effective public policies to support the automotive ecosystem, with a focus on innovation, competition and the growth of young firms. |
| Keywords: | automotive, autonomous vehicles, decarbonisation, industrial ecosystems, industrial policy |
| JEL: | L62 O25 L50 O38 Q58 |
| Date: | 2023–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:144-en&r=sbm |
| By: | Robert Parham |
| Abstract: | This work analyzes data on all public US firms in the 50 year period 1970-2019, and presents 18 stylized facts of their scale, income, growth, return, investment, and dynamism. Special attention is given to (i) identifying distributional forms; and (ii) scale effects -- systematic difference between firms based on their scale of operations. Notable findings are that the Difference-of-Log-Normals (DLN) distribution has a central role in describing firm data, scale-dependent heteroskedasticity is rampant, and small firms are systematically different from large firms. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2302.02485&r=sbm |
| By: | Tuuli, Saara |
| Abstract: | Analyses of zombie firms have emphasised the role of bank financing as the reason for zombie survival. This conclusion was made despite no comparative analysis of the sources of external finance for zombie firms. This paper provides the first analysis of that sort using Finnish data. Surprisingly, the results show quite clearly that there is no connection between zombie survival and bank financing; this result is robust to various measurement and specification issues. Instead, a role is found for owners (i.e. equity funders) in keeping zombies alive in the (often correct) anticipation of the firm recovering. |
| Keywords: | zombie firms, banks, credit constraints, firm-level data, panel data |
| JEL: | D25 E51 G2 G3 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bofrdp:22023&r=sbm |
| By: | Katiuscia Lavoratori; Yi Wu; Melanie Zhang |
| Abstract: | The emerging co-working space phenomenon provides a unique case for the knowledge spillover under the hybrid working style. We investigate the micro-location choices of co-working offices at the postcode district level. With the co-working space locations from 12 co-working operators in central London during 2009-2020, results from the conditional logit model show that, the co-working offices tend to choose the districts with higher industry diversity, a higher proportion of Culture and Creative Industry (CCI) business, or where the local industries contain more “teleworkable” job types. Meanwhile, co-working spaces tend to locate at those where start-up firms concentrated, echoing that the influences of knowledge spillover differ among firms’ life cycles. The results are robust when controlling the business strategies of co-working office providers, as well as the infrastructure, connectivity, and urban density at the local level. The findings cast light on the discussion of spatial clustering and micro-location choices with the case of sharing economy. It also shares substantial policy implications on the strategy design of boosting agglomeration benefits and productivity returns with co-working space. |
| Keywords: | Agglomeration Economies; co-working space; Location Choice; micro-geography |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:2022_138&r=sbm |
| By: | Chiara Criscuolo; Antoine Dechezleprêtre; Mario Cervantes |
| Abstract: | The transition to climate neutrality requires cost reductions in existing clean technologies to enable rapid deployment on a large scale, as well as the development of emerging technologies such as green hydrogen. This policy paper argues that science, technology, innovation, and industrial (STI&I) policies focusing on developing and deploying low-carbon technologies are crucial to achieving carbon neutrality. It notes however that the current level of innovation is insufficient to meet the net-zero challenge due to a policy emphasis on deployment rather than research and development (R&D) support. The paper explores the rationale for more ambitious STI&I policies targeted at R&D for climate neutrality and provides policy recommendations for an effective innovation policy for net-zero, including its interaction with the broader climate policy package. |
| Keywords: | climate change mitigation, innovation policy, low-carbon innovation, technological change |
| JEL: | O38 Q54 Q55 Q58 |
| Date: | 2023–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:143-en&r=sbm |
| By: | Olayinka Oyekola (Department of Economics, University of Exeter); Samuel Odewunmi (Department of Economics, University of Exeter) |
| Abstract: | Does the level of societal secrecy aggravate or alleviate access to finance? We explore this question for over 50, 000 firms in around 40, predominantly developing, countries, from 2006 to 2015. We find a strong positive relationship between cultural orientation towards secrecy in a country and financial constraints faced by its firms. Our results are robust to several considerations and emphasise the adverse consequence of societal secrecy for perpetuating financing obstacles for firms. |
| Keywords: | financial constraints, access to credit, societal secrecy, national culture, firm-level data |
| JEL: | G20 G30 O16 Z1 |
| Date: | 2023–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:2303&r=sbm |
| By: | OECD |
| Abstract: | Cultural and creative sectors are a significant driver of local development both through direct job creation and income generation but also indirectly by spurring innovation across the economy. Beyond their economic impacts, they also have significant social impacts, from supporting health and well-being to promoting social inclusion and local social capital. Flanders (Belgium) has placed cultural and creative sectors as a priority in the region’s economic and social strategy. This paper provides an overview of cultural and creative sectors in Flanders, highlighting trends in employment, business dynamics, entrepreneurship and financing as well as cultural participation. It offers analysis and recommendations to support the region in continuing to build on its local cultural and creative ecosystem. |
| Keywords: | Creative industries; culture and local development; cultural employment |
| JEL: | Z1 |
| Date: | 2023–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2023/06-en&r=sbm |
| By: | Kanit Sangsubhan; Kumpon Pornpattanapaisankul; Pisacha Kambuya |
| Abstract: | Rapid advances in the automation technology have led to a rise of public interest among researchers and policy makers. In manufacturing, most papers proved that industrial robots and automation is a key enabler to improve firm’s competitiveness and the overall growth of country. However, the often referred to picture of this new technology as “job killers†caused by the decoupling of wages and output per worker. Using Thai manufacturing firm-level data, this paper provides empirical evidence that there is a positive relationship between firms adopting automated process and their TFP. However, being in EEC area shows mixed results. We also find that automation investment has positive significant effect on total employment. Furthermore, there is some evidence that automation is driving an increase in demand for skilled workers and has reduced unskilled activities. |
| Keywords: | Automation; Robots; Total factor productivity; Labor productivity; Employment; Skills; Firm investment |
| JEL: | D24 E24 O14 O33 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:pui:dpaper:199&r=sbm |
| By: | Gil, Eunsun (Korea Institute for Industrial Economics and Trade) |
| Abstract: | The Korean government is considering providing a fourth round of disaster relief funding to support small businesses hard-hit by the prolonged social distancing measures implemented to contain the spread of COVID-19. However, determining which businesses should benefit from this support is quite tricky. Legal business entities such as microenterprises and privately-owned companies are not the same as struggling, self-employed small businesses. During the second and third rounds of support, only privately-owned microenterprises were eligible for relief. The amount of financial support available varied depending on whether businesses were ordered to limit the number of customers, had restrictions placed on business hours, or suffered losses in revenue. Small business establishments categorized neither as microenterprises nor as privately-owned companies have been excluded from receiving support, regardless of the economic hardship they face. Moreover, privately-owned microenterprises (many of which are far from being small businesses with narrow operating margins) are not excluded from receiving support. This paper explores proposals for policy that would address these issues to ensure greater equity in COVID-19 disaster relief. |
| Keywords: | COVID-19; Korea; subsidies; subsidy policy; support policy; small businesses; SMEs; small and medium-sized enterprises; policy support; disaster relief; disaster relief policy; stimulus policy; disaster aid; COVID-19 relief; bailouts; credits; loan guarantees; government loans |
| JEL: | H12 H20 H25 H81 H84 L50 L53 |
| Date: | 2021–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietia:2021_002&r=sbm |