nep-sbm New Economics Papers
on Small Business Management
Issue of 2023‒10‒30
27 papers chosen by
João Carlos Correia Leitão, Universidade da Beira Interior

  1. The elusive impact of R&D grants on firm productivity By Fernando Alexandre; Diogo Ferreira; Sandro Mendonça; Miguel Portela
  2. Bottom-up Policies Trump Top-down Missions By Henrekson, Magnus; Stenkula, Mikael
  3. The Productivity Effects of Regional Anchors on Local Firms in Swedish Regions between 2007 and 2019 – Evidence from an Expert-informed Machine-Learning Approach By Nilsson, Magnus; Schubert, Torben; Miörner, Johan
  4. The Extent of Innovation in Philippine Business and Industry: Results of the 2021 PIDS Survey of Innovation Activities By Serafica, Ramonette B.; Albert, Jose Ramon G.; Quimba, Francis Mark A.; Vizmanos, Jana Flor V.; Muñoz, Mika S.; Andrada, Abigail E.; Moreno, Neil Irwin S.; Hernandez, Angelo C.
  5. The Impact of R&D tax incentives: Results from the OECD microBeRD+ project By OECD
  6. Enhancing the Knowledge Economy: A Cross-Country Study of Knowledge Creation By Moid, Md Zubab Ibne; Buaka, Emefa; Link, Albert
  7. Innovation During Challenging Times By Cascaldi-Garcia, Danilo; Vukoti, Marija; Zubairy, Sarah
  8. Big data analytics and exports: Evidence for manufacturing firms from 27 EU countries By Wagner, Joachim
  9. The Effect of the Covid-19 Pandemic on the Innovation Process of Small and Medium-sized Regional Firms By Shigeno, Hidenori; Matsuzaki, Taisuke; Ueki, Yasushi; Tsuji, Masatsugu
  10. Gender Contribution to the Innovation-Productivity Relationship in the Wake of COVID-19: Evidence for the Caribbean By Tacsir, Ezequiel; Pereira, Mariano
  11. COVID-19, Firm Innovation Strategy, and Production Efficiency: A Stochastic Frontier Analysis of Caribbean Firms By Mohan, Preeya; Strobl, Eric
  12. Analysing key relationships: digitalization, innovation and structural conditions in EU By de Rojas, Félix Hernández; Pita, Pilar Rodríguez; Pérez Martínez, Jorge Emiliano
  13. Cluster Initiatives and Economic Resilience: Evidence from a Technology Cluster in Argentina By Díaz de Astarloa, Bernardo; Tacsir, Ezequiel
  14. Bringing Technology to Market: National Heart, Lung, and Blood Institute SBIR Phase IIB Projects By Nienow, Sara; Leonchuk, Olena; O'Connor, Alan; Link, Albert
  15. Policy Support and Firm Performance During the COVID-19 Pandemic: Evidence from Colombia By Galindo, Arturo; Tovar, Jorge
  16. Technological externalities and wages: new evidence from Italian provinces By Andrea Ricci; Claudia Vittori; Francesco Quartaro; Stefano Dughera
  17. A systematic review of performance measurement systems and their relevance to social enterprises By Cosa, Marcello; Urban, Boris
  18. The Causal Impact of Covid-19 Government-backed Loans on MSMEs Liquidity and Earnings By Cerda, Maikol; Gertler, Paul; Higgins, Sean; Montoya, Ana María; Parrado, Eric; Undurraga, Raimundo
  19. Clusters and Resilience during the COVID–19 Crisis: Evidence from Colombian Exporting Firms By Campi, Mercedes; Dueñas, Marco
  20. Artificial Intelligence and Employment: A Look into the Crystal Ball By Dario Guarascio; Jelena Reljic; Roman Stoellinger
  21. Entrepreneurship as Religion: The Sacred Cosmos of Entrepreneurial Capitalism By Weiss, Tim
  22. Exploring ecosystemic business models By Nyström, Anna-Greta; Leminen, Seppo
  23. Artificial Intelligence and Employment: A Look into the Crystal Ball By Dario Guarascio; Jelena Reljic; Roman Stollinger
  24. Robot Imports and Firm-Level Outcomes By Alessandra Bonfiglioli; Rosario Crinò; Herald Fadinger; Gino Gancia
  25. Artificial intelligence, complementary assets and productivity: evidence from French firms By Flavio Calvino; Luca Fontanelli
  26. Annual Survey of Micro, Small, and Medium Enterprises (MSMEs) In India: Leveraging E-commerce for the Growth of MSMEs By Tanu Goyal; Radhicka Kapoor
  27. The G20 initiative for rural youth employment: A better future for rural youth By OECD

  1. By: Fernando Alexandre (NIPE/Center for Research in Economics and Management, University of Minho, Portugal); Diogo Ferreira (NIPE/Center for Research in Economics and Management, University of Minho, Portugal); Sandro Mendonça (Business Research Unit (BRU-IUL), University Institute of Lisbon; Research Unit on Complexity and Economics (UECE), Research in Economics and Mathematics (REM), Lisbon School of Economics & Management (ISEG), University of Lisbon; Science Policy Research Unit (SPRU), University of Sussex.); Miguel Portela (NIPE/Center for Research in Economics and Management, University of Minho, Portugal; IZA, Bonn)
    Abstract: This paper evaluates the effectiveness of R&D subsidies, provided by the European Regional Development Funds, on firms’ productivity. Using detailed longitudinal firm-level data covering the period 2007-2019, we employ state of the art differences-in-differences estimators to evaluate the impacts of R&D grants. Positive causal effects on gross value added and labour productivity are discernible for micro- and small-sized firms participating in co-promotion but not in individual projects. However, these effects seem to be elusive. No evidence of a positive effect of these grants on firm performance for medium- and large-sized firms or for individual R&D projects is found. This investigation contributes to a more comprehensive understanding of the relative effectiveness of productivity enhancement programs.
    Keywords: R&D grants; productivity; European funds; co-promotion
    JEL: D22 H25 L25 L52
    Date: 2023
  2. By: Henrekson, Magnus (Research Institute of Industrial Economics); Stenkula, Mikael (IFN - Research Institute of Industrial Economics)
    Abstract: Mission-oriented innovation policies are becoming increasingly popular among policymakers and scholars. We maintain that these policies are based on an overly mechanistic view of innovation and economic growth, suggesting that a more bottom-up approach is called for. By invoking an entrepreneurial ecosystem perspective, we point out that innovative entrepreneurship requires many other actors—besides the entrepreneur—whose skills and abilities are necessary to realize an entrepreneurial project. When mission-oriented policies play a large role in the economy, connections between actors in the ecosystem risk becoming distorted. A functioning and well-balanced entrepreneurial ecosystem requires instead an institutional framework that levels the playing field for potential entrepreneurs and encourages productive entrepreneurship. To promote this kind of system, we discuss in more detail eight key areas where appropriate horizontal or bottom-up policy measures can foster innovation and, in the end, the welfare-enhancing productive entrepreneurship policymakers and scholars strive for.
    Keywords: collaborative innovation bloc, entrepreneurial ecosystem, entrepreneurship policy, institutions, public choice
    JEL: H50 L26 O31 P16
    Date: 2023–09
  3. By: Nilsson, Magnus (CIRCLE, Lund University); Schubert, Torben (CIRCLE, Lund University); Miörner, Johan (CIRCLE, Lund University)
    Abstract: This paper analyses the impact of regional anchors on local firms in Swedish regions. Departing from previous idiographic research, we adopt a nomothetic research design relying on a stepwise expert-informed supervised machine learning approach to identify the population of anchor firms in the Swedish economy between 2007 and 2019. We find support for positive anchor effects on the productivity of other firms in the region. These effects are moderated by regional and anchor conditions. We find that the effects are greater when there are multiple anchors within the same industry and that the effects are larger in economically weaker regions.
    Keywords: anchor-tenant; productivity; machine learning; anchor firms; Sweden
    JEL: D24 O30 R11 R12
    Date: 2023–10–10
  4. By: Serafica, Ramonette B.; Albert, Jose Ramon G.; Quimba, Francis Mark A.; Vizmanos, Jana Flor V.; Muñoz, Mika S.; Andrada, Abigail E.; Moreno, Neil Irwin S.; Hernandez, Angelo C.
    Abstract: Following Schumpeter’s ideas, the Oslo Manual defines innovation as “the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations”. With the advent of the Fourth Industrial Revolution, governments have become even more cognizant of innovation as a major driver of economic performance, from output to productivity and competitiveness. The Philippine government acknowledges its role in establishing and maintaining a conducive policy environment to encourage innovation and support the country’s innovation ecosystem. Examining innovation and its relation to economic growth, the study involves the conduct and analysis of the 2021 PIDS Survey of Innovation Activities (PSIA). Unlike the first PSIA undertaken in 2015 and a pilot of the survey conducted in 2009, the 2021 PSIA provides a nationally representative reading of the entire Philippine business and industry. The survey suggests that as of 2021, a third (33.6%) of firms are innovation active, with innovation practiced more among medium and large establishments than micro and small ones. Moreover, innovation is much more prevalent in Mindanao, among major islands, and in information and communications technology firms (and least in agriculture). Aside from the information on innovation activities, data on the use of digital platforms by Philippine businesses were also gathered in the 2021 PSIA in recognition of the expanding markets arising from rising digitalization and more rapid use of the internet, even by micro, small and medium enterprises. The survey results of the 2021 PSIA are expected to be inputs on how government can be more successful in mainstreaming innovation in the country. Comments to this paper are welcome within 60 days from the date of posting. Email
    Keywords: innovation;product innovation;process innovation;organizational innovation;marketing innovation;Fourth Industrial Revolution;platform economy;digital platforms;micro, small, and medium enterprises;MSMEs
    Date: 2023
  5. By: OECD
    Abstract: This document reports on the final output of the OECD microBeRD+ project. Drawing on the outcomes of previous work, this study presents new evidence on the impact of business R&D support policies – tax incentives and direct forms of support – on business R&D investment (R&D input additionality) and the innovation and economic performance of firms (R&D output additionality). The report also provides an exploratory analysis of R&D spillovers.
    JEL: H25 O38 L25
    Date: 2023–10–09
  6. By: Moid, Md Zubab Ibne (University of North Carolina at Greensboro, Department of Economics); Buaka, Emefa (University of North Carolina at Greensboro, Department of Economics); Link, Albert (University of North Carolina at Greensboro, Department of Economics)
    Abstract: We identify quantitatively, using cross-country data from the Global Innovation Index, a path through which R&D (research and development) operates to affect economic growth and development. The path we consider is one that relates to enhancing the knowledge economy. Specifically, we contribute to the literature through the quantification of the antecedents and consequences of newly created knowledge: R&D creation of new knowledge economic growth and development. And, we show statistically that the R&D creation of new knowledge relationship is enhanced when businesses collaborate with universities. Not only is this collaborative indirect relationship new to the knowledge creation literature, but also it is based on the estimation of a model specification that has not previously been considered.
    Keywords: Global Innovation Index; knowledge economy; R&D; business-university collaboration;
    JEL: O33 O47 O50
    Date: 2023–10–18
  7. By: Cascaldi-Garcia, Danilo (Federal Reserve Board); Vukoti, Marija (University of Warwick); Zubairy, Sarah (Texas A&M University and NBER)
    Abstract: When is receiving positive news regarding future technological advancements most impactful on the economy: during recessions or economic booms? A recession might represent an opportune time for investing in relatively cheaper, productivityenhancing activities. However, tighter financial constraints during recessions might hinder the ability to secure funds for these activities. We explore this dichotomy by exploiting patent-based innovation shocks, which are constructed using changes in stock market valuations of firms that obtain patent grants. We find that aggregate patent-based innovation shocks have a greater impact on the economy during recessions, leading to a more significant increase in private investment. Additionally, our exploration of firm-level data uncovers supporting evidence that firms tend to boost their capital investment and R&D expenditures in response to these innovation shocks, particularly during recessions. The financial constraints of firms play a crucial role, with capital investments by firms with low default risk driving the larger impact observed during recessions.
    Keywords: Innovation shocks ; Patent-Based Innovation Index ; Financial Frictions ; Firms heterogeneity ; State dependency
    Date: 2023
  8. By: Wagner, Joachim
    Abstract: The use of big data analytics (including data mining and predictive analytics) by firms can be expected to increase productivity and reduce trade costs, which should be positively related to export activities. This paper uses firm level data from the Flash Eurobarometer 486 survey conducted in February - May 2020 to investigate the link between the use of big data analytics and export activities in manufacturing enterprises from the 27 member countries of the European Union. We find that firms which use big data analytics do more often export, do more often export to various destinations all over the world, and do export to more different destinations. The estimated big data analytics premia for exports are statistically highly significant after controlling for firm size, firm age, patents, and country. Furthermore, the size of these premia can be considered to be large. Successful exporters tend to use big data analytics.
    Keywords: Big data analytics, exports, firm level data, Flash Eurobarometer 486
    JEL: D22 F14
    Date: 2023
  9. By: Shigeno, Hidenori; Matsuzaki, Taisuke; Ueki, Yasushi; Tsuji, Masatsugu
    Abstract: The objective of this study is to analyze how the innovation process has been affected by Covid-19 pandemic by focusing on SMEs. The RQs are: RQ1: Whether there is a difference in the innovation of SMEs between before and during Covid-19 RQ2: If any, how Covid-19 affects the innovation process This study is based on two surveys in February 2014 and 2022 to the same 1324 SMEs and 87 which responded to both surveys are employed for analysis. Measures include (i) the ratio of R&D investment to sales, (ii) open innovation, (iii) sources of ideas, (iv) problem solving ability, (v) human resource development, (vi) business development strategies. In the second questionnaire, the level of the effect of Covid-19 on variables are asked for the five Likert scale. The method used in this study is PSM-DID, which is the combination DID and PSM and to cope with biases such as sample selection and time trend. For the construction of the model, in-depth field surveys were conducted, which leads to hypothesis such that face-to-face communications were impeded between partners of transactions by the COVID-19 pandemic. This hypothesis and RQs are demonstrated by PSM-DID.
    Keywords: PSM-DID, measures of innovation, open innovation, R&D, open innovation, face-to-face communications
    Date: 2023
  10. By: Tacsir, Ezequiel; Pereira, Mariano
    Abstract: This study presents new findings on the impact of the COVID-19 pandemic on productivity and innovation for Caribbean firms, with particular focus on the effects on firm gender diversity and workforce composition. Research on the impact of women's participation on firm performance and innovation has so far produced mixed results, though there is some evidence to suggest that for Latin America, larger shares of women in the knowledge creation and innovation process may increase innovative behavior and, as a consequence, lead to greater labor productivity. In the current context, female participation in firms becomes an even more pressing issue, given the early indications of the pandemics disproportionately negative burden on women s income and jobs in different regions. We found that the gender composition of the personnel has an interesting direct effect on productivity. At the same time, our results show that the expected reductions in female personnel due to the pandemic, have a negative effect in the shares of female participation which, in turn, have the potential to nullify the mentioned productivity channel. This suggests the existence of a minimum threshold of female participation to profit from diversity. Hence, it seems that policy should focus particularly on protecting female jobs, particularly in the wake of dramatic shocks affecting revenues and/or employment.
    Keywords: Caribbean;pandemic;innovation;gender;Productivity
    JEL: O32 J16 D22
    Date: 2023–03
  11. By: Mohan, Preeya; Strobl, Eric
    Abstract: While Caribbean Small Island Developing States (SIDS) have been exposed to frequent external shocks in the past, the Coronavirus disease of 2019 (COVID-19) pandemic is like no other, representing the largest economic shock experienced globally in decades. The objective of this paper is to contribute to a better understanding of the innovation strategy and production efficiency of Caribbean firms during COVID-19. More specifically, it adopted a Stochastic Frontier Analysis (SFA) to investigate COVID-19, innovation, and technical efficiency for 13 Caribbean countries using the Innovation, Firm Performance, and Gender (IFPG) firm-level dataset. The results indicate that firms expect average technical efficiency to fall by over 100 percent because of COVID-19. Pre-COVID-19, 39 percent of firms implemented general innovations (product, process, organizational, and marketing) over the past three years, and 50 percent green innovations (environmental improvements), while the pandemic negatively affected 42 percent of these innovations. Firms that carried out general innovations experienced a positive effect on technical efficiency, while green innovations had a negative effect. During COVID-19 only 12 percent of firms initiated general innovations and 17 percent green innovations. These general innovations improved technical efficiency, while innovations that were affected by COVID-19 had a negative effect, and green innovations did not necessarily have a positive effect.
    Keywords: innovation;green innovation;COVID-19;production function;technical efficiency;stochastic frontier analysis;small islanddeveloping states
    JEL: D22 D24 O32 Q55
    Date: 2023–03
  12. By: de Rojas, Félix Hernández; Pita, Pilar Rodríguez; Pérez Martínez, Jorge Emiliano
    Abstract: There is an intrinsic relationship between innovation and digitalization, marked by the specific and structural socioeconomic characteristics of our regions and countries. These characteristics explain the territory heterogeneity and determine in many cases specific paths for the next digital transformations in the EU. The EU is answering this movement with an ambitious multimillion public investment, the NextGeneration Funds, and an ample set of policies to encourage its digital 2030 agenda: innovation is in front line, governing most of the decision for countries' digitalization under our specific set of European values (Hajighasemi et al., 2022) But there are some tough questions countries cannot ignore: are all these economical efforts around innovation well addressed to foster digital transformation? To what extent a country offers a different behavior across this intime relationship between digitalization and innovation? In which aspects higher degrees in innovation means a higher advantage for the economic and social digitalization in a country? Innovation, as it is broadly defined in the European Innovation Scoreboard (EIS), published by European Commission, is a complex concept built by a multitude of interacting aspects that do not necessarily work synergistically: a framework of conditions, innovation activities, investment, and economics impacts. The consequential results of cross-cutting drivers, such as digitalization, is often difficult to assess, as the achievement of certain targets may also inadvertently hinder progress towards others. Although digitalization in economy implies positive relationship with technological innovation (Yuan et al., 2021), and digital transformation boosts companies' innovation and performance (Ferreira et al., 2019), other results show that besides improving the level of business digitalization, innovation has a direct influence on business performance, as well as acting as a moderating variable that should be aligned with strategy (Fernández-Portillo et al., 2022). However, other research shows that innovation activities do not necessarily imply technological improvements (Zabala-Iturriagagoitia et al., 2021). Our study describes a comprehensive and systematic European country-based analysis of statistical associations between both, digitalization and innovation indicators operating at several different levels to understand better these apparent contradictions. We use for this study a regression and some graphical analyses, using open data coming from EIS and DESI (Digital Economy and Society Index), this last one used by the European Commission to measure countries' digitalization in Europe. Also, we have considered structural economic indicators which complement the EIS related to country's wealth, population and rule of law, business activity, innovation enterprise segmentation and environmental factors. (...)
    Date: 2023
  13. By: Díaz de Astarloa, Bernardo; Tacsir, Ezequiel
    Abstract: In this paper, we study the role of a cluster initiative in fostering economic resilience among firms in a local technology cluster in Argentina. We focus on two aggregate shocks that hit the Argentine economy, including first wave of the COVID-19 pandemic. Our analysis is based on interviews with authorities and members of the cluster initiative, local firms, and policy makers, as well as on firm-level administrative tax records. We find that the cluster organization provides members with resources that could foster resilience, including access to specialized human capital, information on business opportunities, and assistance in applying for government support programs. However, while members of the cluster organization appear to be more resilient than non-members, even within the same regional cluster, after conditioning on firm characteristics we find little evidence of a positive association between belonging to the cluster organization and economic resilience. Members of the cluster organization are neither less likely to exit nor adapt by switching their main economic activity and did not show statistically significantly higher revenue growth than nonmembers. Member firms do appear to have been more able than non-members to keep up with tax obligations during the first wave of the COVID-19 pandemic.
    Keywords: Cluster initiatives;Resilience;technology clusters;information technology industries;COVID-19 crisis
    JEL: R12 D22 D02
    Date: 2022–12
  14. By: Nienow, Sara (RTI International); Leonchuk, Olena (RTI International); O'Connor, Alan (RTI International); Link, Albert (University of North Carolina at Greensboro, Department of Economics)
    Abstract: The National Heart, Lung, and Blood Institute (NHLBI) is the fourth largest institute in the U.S. National Institutes of Health (NIH). Surprisingly, there is a conspicuous void of policy studies related to the research activities of NHLBI in comparison to NIH or to the National Cancer Institute. This paper investigates the likelihood that a business funded through NHLBI’s Small Business Innovation Research (SBIR) program will commercialize from its Phase IIB translational support. Commercialization is one performance metric that quantifies a policy dimension of the success of the funded SBIR project. Based on an empirical analysis of 61 Phase IIB projects, we find that the most significant covariate with the likelihood of commercialization is the growth in human capital within the business since the Phase IIB award.
    Keywords: NHLBI; Phase IIB projects; SBIR program; technology commercialization;
    JEL: H11 H51 O38
    Date: 2023–10–06
  15. By: Galindo, Arturo; Tovar, Jorge
    Abstract: The pandemic hit the Colombian economy as hard as other countries. Using a novel Business Pulse Survey, this paper tests the effect of government support and COVID-19 cases on firms performance. A one-standard-deviation increase in government support (in periods in which the pandemics intensity was average) increased the percentage of firms reporting normal operations by 4.8 percent. Political demonstrations in spring 2021, however, reduced the percentage by 13 percent each month they lasted. Firms' financial distress also counters the impact of government support, suggesting the need to ease firms' access to financial markets. Last, we show that investing in digital solutions improved firms' performance but remote work degraded it.
    Keywords: COVID-19;Firm performance;Policies;Working from home;Policy support
    JEL: D22 L20 L25 O10
    Date: 2022–12
  16. By: Andrea Ricci; Claudia Vittori; Francesco Quartaro; Stefano Dughera
    Abstract: In this paper, we investigate the relationship between local wages and the internal structure of the regional knowledge base. The purpose is to assess if the workers’ compensations are related to the peculiarities of the technological space where they supply their labor services. To test this hypothesis, we apply the concepts of related and unrelated variety to the firms’ patenting activity as to assess if wages grow more in a framework of ‘knowledge deepening’ (generated by firms innovating in related technological domains) or in one of ‘knowledge widening’ (generated by firms innovating in unrelated technological domains).
    Date: 2022–03–31
  17. By: Cosa, Marcello; Urban, Boris
    Abstract: Social enterprises (SEs) aim to optimise social value and financial performance, posing unique challenges for performance measurement. While performance measurement systems (PMSs) have been extensively studied in for-profit firms, they have not been widely taken up in SEs, potentially reflecting perceived difficulties in balancing social and financial goals. To better understand the evolution of the adoption, use, and effectiveness of PMSs in SEs, we conducted a systematic review encompassing 24 papers identified through comprehensive searches in Web of Science, Scopus, and EBSCO. Through thematic analysis, we classified the scholarly research into three key themes: ‘adoption’, ‘usability’, and ‘effectiveness’. Overall, our study confirmed that PMS uptake in SEs has been limited. We identified multiple barriers, but among the most prominent reasons were a lack of sufficient financial or human resources to implement them and cultural barriers whereby social entrepreneurs seek to distance themselves from seemingly traditional business practices. Future research should focus on practical applications of these tools in addressing specific social entrepreneurship sectors’ challenges.
    Date: 2023–07–19
  18. By: Cerda, Maikol; Gertler, Paul; Higgins, Sean; Montoya, Ana María; Parrado, Eric; Undurraga, Raimundo
    Abstract: We conducted two randomized controlled trials (RCTs) to evaluate the impact of government-guaranteed loans offered by the Chilean and Colombian governments. The public funds of these programs greatly expanded following the start of the Covid-19 pandemic and offered loans to Micro, Small and Medium Enterprises to mitigate the negative impact of the shock. Through a collaboration with private banks, we launched two experiments which offered loans to a sub-set of the 10, 072 Chilean and 3, 079 Colombian small businesses that took part in our experiments. Most of these firms had previously applied for a loan during the pandemic--but prior to the RCTs--but were rejected by banks due to their risk analysis of the firms. With take-up rates of 27% and 29%, respectively, we find that Covid-19 loans had a significant positive impact on the total liquidity that treated MSMEs could access: total liquidity with the formal banking system increased by 15.7% (statistically significant at the 1% level). The results of our RCTs will inform Latin American governments concerning their strategies to support MSMEs via government-backed loan programs and will shape similar public policies in the future.
    Keywords: RCT;Government-guaranteed loans;COVID-19 pandemic;Eventstudy;Impact Evaluation
    JEL: J16 L26 P52
    Date: 2023–02
  19. By: Campi, Mercedes; Dueñas, Marco
    Abstract: In this paper, we characterize the geography of Colombian exporting clusters and analyze how the COVID-19 crisis has affected Colombian exporters. We contribute to the industrial clusters literature by defining exporting clusters with bipartite network analysis and community detection tools. The methodology allows us to empirically detect product clusters, which are compared with an alternative definition of industrial clusters, and to consider the centrality of firms within clusters. Then, we analyze the firms trade margins during the COVID-19 crisis to evaluate whether belonging to an exporting cluster can be a source of resilience for firms. We find that clusters do not automatically lead to higher resilience and that there are differences in how firms react to a crisis within clusters. Identifying the relevant firms characteristics can guide policymakers to activate the mechanisms that generate resilience.
    Keywords: exporting clusters;margins of trade;COVID-19;bipartite networks;community detection
    JEL: F14 R12 L19
    Date: 2022–09
  20. By: Dario Guarascio; Jelena Reljic; Roman Stoellinger
    Abstract: This study provides evidence of the employment impact of AI exposure in European regions, addressing one of the many gaps in the emerging literature on AI's effects on employment in Europe. Building upon the occupation-based AI-exposure indicators proposed by Felten et al. (2018, 2019, 2021), which are mapped to the European occupational classification (ISCO), following Albanesi et al. (2023), we analyse the regional employment dynamics between 2011 and 2018. After controlling for a wide range of supply and demand factors, our findings indicate that, on average, AI exposure has a positive impact on regional employment. Put differently, European regions characterised by a relatively larger share of AI-exposed occupations display, all else being equal and once potential endogeneity concerns are mitigated, a more favourable employment tendency over the period 2011-2018. We also find evidence of a moderating effect of robot density on the AI-employment nexus, which however lacks a causal underpinning.
    Keywords: Artificial intelligence; industrial robots; labour; regional employment; occupations
    JEL: J21 J23 O33 R1
    Date: 2023–10
  21. By: Weiss, Tim
    Abstract: Modern-day entrepreneurship ideology prominently features religious characteristics. When viewed through the analytical foil of religion, the sacred cosmos of entrepreneurial capitalism comes into relief, endowing entrepreneurship with a meaning structure of mysterious, awesome, and seductive qualities.
    Date: 2023–06–19
  22. By: Nyström, Anna-Greta; Leminen, Seppo
    Abstract: Ecosystems are organizational collectives combining forces to create value offerings to a defined audience. These organizations, or firms, are linked to each other in processes of cooperation and competition simultaneously. Firms increasingly choose an ecosystem strategy over other alternatives to ensure value co-creation and capture (Hannah & Eisenhardt, 2018). Subsequently, ecosystem strategy enables a context in which the firm can build, leverage, and extend, as opposed to merely locating and occupying a strong position (Autio and Thomas, 2018). An ecosystem is essentially a network of organizations (suppliers, distributors, producers, government agencies, NGOs etc.) involved in the production or delivery of a product, service, or solution. A business ecosystem is characterized by a certain degree of dependence for the ecosystem to function. Research has identified ecosystem offerings as malleable and users as having a broader range of opportunities to define the value offering (e.g., customization) compared to the context of conventional supply chains (cf. Autio, 2022). Ecosystems have less hierarchical arrangements and more independent participants, which pose challenges of orchestration. For example, ecosystem partners should behave in such a way that they contribute to an increased value of the focal participant's offering, but the question of how to persuade ecosystems partners to do so remains, especially if there are less hierarchical arrangements (e.g., licensing agreements, predefined roles). Ecosystem orchestration, in turn, is linked to the value offering that the ecosystem collectively produces, which inevitably arises from the participating firms' business models. (...)
    Date: 2023
  23. By: Dario Guarascio; Jelena Reljic; Roman Stollinger
    Abstract: This study provides evidence of the employment impact of AI exposure in European regions, addressing one of the many gaps in the emerging literature on AI's effects on employment in Europe. Building upon the occupation-based AI-exposure indicators proposed by Felten et al. (2018, 2019, 2021), which are mapped to the European occupational classification (ISCO), following Albanesi et al. (2023), we analyse the regional employment dynamics between 2011 and 2018. After controlling for a wide range of supply and demand factors, our findings indicate that, on average, AI exposure has a positive impact on regional employment. Put differently, European regions characterised by a relatively larger share of AI-exposed occupations display, all else being equal and once potential endogeneity concerns are mitigated, a more favourable employment tendency over the period 2011-2018. We also find evidence of a moderating effect of robot density on the AI-employment nexus, which however lacks a causal underpinning.
    Keywords: Artificial intelligence; industrial robots; labour; regional employment; occupations.
    Date: 2023–10–06
  24. By: Alessandra Bonfiglioli; Rosario Crinò; Herald Fadinger; Gino Gancia
    Abstract: We use French data over the 1994-2013 period to study how imports of industrial robots affect firm-level outcomes. Guided by a simple model, we develop a novel empirical strategy to identify the causal effects of robot adoption. Our results suggest that, while demand shocks generate a positive correlation between robot imports and employment at the firm level, exogenous exposure to automation leads to job losses. We also find that robot exposure increases labor productivity and some evidence that it may raise the relative demand for high-skill professions.
    Keywords: Automation, Displacement, Firms, Robots
    JEL: J23 J24 O33 D22
    Date: 2023–10
  25. By: Flavio Calvino; Luca Fontanelli
    Abstract: In this work we characterise French firms using artificial intelligence (AI) and explore the link between AI use and productivity. We relevantly distinguish AI users that source AI from external providers (AI buyers) from those developing their own AI systems (AI developers). AI buyers tend to be larger than other firms, while AI developers are also younger. The share of firms using AI is highest in the ICT sector, which exhibits a particularly high share of developers. Complementary assets, including skills, digital capabilities and infrastructure, play a key role for AI use, with AI buyers and developers leveraging different types of human capital. Overall, AI users tend to be more productive, however this appears largely related to the self-selection of more productive and digital-intensive firms into AI use. This is not the case for AI developers, for which the positive link between AI use and productivity remains evident beyond selection, suggesting a positive effect of AI on their productivity.
    Keywords: Technology Diffusion; Artificial Intelligence; Digitalisation; Productivity.
    Date: 2023–10–13
  26. By: Tanu Goyal (Indian Council for Research on International Economic Relations (ICRIER)); Radhicka Kapoor (Indian Council for Research on International Economic Relations (ICRIER))
    Abstract: The results of the survey suggest that MSMEs have witnessed significant gains by integrating with e-commerce platforms. Improved market access is the most widely reported benefit of integration. Therefore, it is unsurprising that a majority of integrated enterprises report their willingness to increase the share of e-commerce sales in their total sales in the future. It is important to highlight the fact that at present, the volume of sales made through e-commerce platforms account for a relatively smaller share of the firms’ total sales compared to those made through traditional routes. And therefore, there is significant scope for MSMEs to increase share of online sales in total sales. The survey also examines the use of digital payments among MSMEs and how integrating with e-commerce platforms impacts their ability to access finance. A majority of the surveyed MSMEs report using digital wallets and mobile payments as the most frequently used payment mode for doing business. On average, cash-based sales are found to be higher for non-integrated MSMEs compared to integrated firms. Further, the use of bank loans is found to be marginally higher among integrated firms compared to non-integrated firms.
    Keywords: MSMEs, E-Commerce, Digital Wallets, icrier
    Date: 2023–09
  27. By: OECD
    Abstract: Between 2017 and 2022, G20 members invested over USD 20 billion in 671 projects related to rural youth employment in Africa. The G20 Initiative for Rural Youth Employment (RYE), launched in 2017, overachieved the targets set to provide employment-related skills to 5 million youth and create 1.1 million jobs by 2022. The most common types of interventions were those focused on agriculture value chain development, skills training, and the promotion of entrepreneurship and small and medium-sized businesses. The paper assesses the achievements of the G20 Initiative for RYE, analyses different RYE programmes and provides recommendations for future G20 initiatives and RYE programming. Despite great progress, much remains to be done to tackle rural youth employment challenges.
    Keywords: agri-food value chain, agriculture, employability, jobs, rural youth employment, youth
    JEL: J13 J43 J62 P25 Q18
    Date: 2023–10–13

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