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on Small Business Management |
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Issue of 2024‒03‒18
thirty-one papers chosen by |
| By: | Omer Majeed; Jonathan Hambur; Robert Breunig |
| Abstract: | This paper examines whether monetary policy and economic conditions affect innovative activity and productivity in Australia, a small open economy that tends to import innovation from overseas. Most interestingly, United States monetary policy spills over and affects Australian firms’ innovation. Within Australia, contractionary monetary policy reduces aggregate R&D spending and this leads to reduced productivity growth. However, using firm-level data and a survey measure of innovation that also captures adoption, we find heterogenous responses across different firm types. Small firms decrease innovation in response to contractionary monetary policy shocks whereas large firms increase innovation. This heterogeneity appears to reflect differing exposures to the demand and financial constraint channels of monetary policy. Overall, our results suggest that monetary policy and economic conditions have medium-run effects on productivity, though the effects are more heterogeneous than previously documented. |
| Keywords: | innovation, monetary policy, firm-level data |
| JEL: | E32 E52 G32 O30 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2024-13&r=sbm |
| By: | Wagner, Joachim |
| Abstract: | The use of robots by firms can be expected to go hand in hand with higher productivity, higher product quality and more product innovation, 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 robots and export activities in manufacturing enterprises from the 27 member countries of the European Union. Applying standard parametric econometric models and a new machine-learning estimator, Kernel-Regularized Least Squares (KRLS), we find that firms which use robots do more often export, do more often export to various destinations all over the world, and do export to more different destinations. The estimated robots premium for extensive margins of exports is statistically highly significant after controlling for firm size, firm age, patents, and country. Furthermore, the size of this premium can be considered to be large. Extensive margins of exports and the use of robots are positively related. |
| Keywords: | Robots, exports, firm level data, Flash Eurobarometer 486, kernel-regularized leastsquares (KRLS) |
| JEL: | D22 F14 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kcgwps:283903&r=sbm |
| By: | Keraga, Mezid N. (Ethiopian Civil Service University); Lööf, Hans (Royal Institute of Technology); Stephan, Andreas (Linnaeus University) |
| Abstract: | This paper presents new insights into the relationship between innovation and employment in low-income countries. We use firm-level data sourced from the World Bank Enterprise Survey (ES) and focus on six sub-Saharan African (SSA) economies over the period 2003-2019. The econometric results from difference-in-differences (DiD) estimations, in conjunction with propensity score matching show a positive influence of product innovation on both permanent and total firm-level employment. The evidence for employment impact of process innovations is weak. Considering relations between firms, we find a positive intra-industry spillover effect from both product and process innovation on employment in firms operating within the same two-digit industry, while the results for inter-industry spillovers are non-significant or negative. |
| Keywords: | Innovation; Employment; Sub-Saharan; Spillover effects; DID; Matching approach |
| JEL: | J20 O30 |
| Date: | 2024–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0497&r=sbm |
| By: | Shinozaki , Shigehiro (Asian Development Bank); Miyakawa, Daisuke (Waseda University); Arahan, Romeo (Asian Development Bank) |
| Abstract: | Limited data on micro, small, and medium-sized enterprises (MSMEs) make it difficult for governments to design appropriate MSME policies in Asia and the Pacific. To identify factors affecting MSME development and promote evidence-based policymaking, we propose a probabilistic principal component analysis method that works despite current data limitations. The study uses time-series MSME data collected from 25 developing member countries of the Asian Development Bank (ADB) through the Asia Small and Medium-Sized Enterprise Monitor project. The estimation results suggest that sound MSME credit markets, diversified financing options, support for new businesses and job creation, and active MSME participation in global marketplaces play a critical role in ensuring a smooth business recovery from various crises and shocks affecting developing Asia and the Pacific. |
| Keywords: | SME development; access to finance; financial inclusion; SME policy; probabilistic principal component analysis; Southeast Asia; South Asia; Central and West Asia; the Pacific |
| JEL: | D22 G20 L20 L50 |
| Date: | 2024–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0715&r=sbm |
| By: | Michele Cascarano (Bank of Italy); Filippo Natoli (Bank of Italy); Andrea Petrella (Bank of Italy) |
| Abstract: | Climate change has long-term effects on the size and composition of a country's business sector. Using administrative data on the universe of Italian firms, we find that an increase in the number of very hot days per year persistently reduces the growth rate of active firms in the market in the medium run. This is due to a drop in firm entry and an increase in firm exit, with relocation playing a minor role. A firm-level investigation reveals a dichotomy between firms that persistently suffer as a result of higher temperatures and those that improve their profitability by adapting to a hotter climate: a combination of size and age best identifies the two groups, where older, smaller-sized firms lie at one extreme and younger, larger firms at the other. According to an average climate scenario, the projected evolution of local temperatures will impact firm demography further, also exacerbating the divergent effects across warmer and colder areas over the current decade. |
| Keywords: | climate change, temperatures, firm dynamics |
| JEL: | D22 R12 Q54 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1418_23&r=sbm |
| By: | Ms. Li Liu; Mr. Ben Lockwood; Eddy H.F. Tam |
| Abstract: | This paper studies the effect of the VAT threshold on firm growth in the UK, using exogenous variation over time in the threshold, combined with turnover bin fixed effects, for identification. We find robust evidence that annual growth in turnover slows by about 1 percentage point when firm turnover gets close to the threshold, with no evidence of higher growth when the threshold is passed. Growth in firm costs shows a similar pattern, indicating that the response to the threshold is likely to be a real response rather than an evasion response. Firms that habitually register even when their turnover is below the VAT threshold (voluntary registered firms) have growth that is unaffected by the threshold, whereas firms that select into the Flat-Rate Scheme have a less pronounced slowdown response than other firms. Similar patterns of turnover and cost growth around the threshold are also observed for non-incorporated businesses. Finally, simulation results clarify the relative contribution of ``crossers" (firms who eventually register for VAT) and ``non-crossers" (those who permanently stay below the threshold) in explaining our empirical findings. |
| Keywords: | VAT; size-based threshold; firm growth |
| Date: | 2024–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/033&r=sbm |
| By: | Fabian Gaessler (University Pompeu Fabra , Barcelona School of Management, Barcelona School of Economics, MPI-IC); Dietmar Harhoff (MPI-IC, LMU Munich, CEPR); Stefan Sorg (MPI-IC); Georg von Graevenitz (Queen Mary University of London) |
| Abstract: | We study the blocking effect of patents on follow-on innovation by others. We posit that follow-on innovation requires freedom to operate (FTO), which firms typically obtain through a license from the patentee holding the original innovation. Where licensing fails, follow-on innovation is blocked unless firms gain FTO through patent invalidation. Using large-scale data from post-grant oppositions at the European Patent Office, we find that patent invalidation increases follow-on innovation, measured in citations, by 16% on average. This effect exhibits a U-shape in the value of the original innovation. For patents on low-value original innovations, invalidation predominantly increases low-value followon innovation outside the patentee’s product market. Here, transaction costs likely exceed the joint surplus of licensing, causing licensing failure. In contrast, for patents on high-value original innovations, invalidation mainly increases high-value follow-on innovation in the patentee’s product market. We attribute this latter result to rent dissipation, which renders patentees unwilling to license out valuable technologies to (potential) competitors. |
| Keywords: | follow-on innovation; freedom to operate; licensing; patents; opposition; |
| JEL: | O31 O32 O33 O34 |
| Date: | 2024–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:494&r=sbm |
| By: | Hvide, Hans K. (U of Bergen and U of Aberdeen); Meling, Tom (Ohio State U) |
| Abstract: | How does the economy adapt to new technologies? While existing literature focuses on the response by established firms, we highlight the response by entrepreneurs. The context is a natural experiment: the staggered rollout of broadband internet in Norway. We find that the new technology had small effects on the survival, employment, and asset growth of established firms, but led to a sustained 25% increase in startup rates. Startup quality did not decline. Our findings support ideas from Schumpeter (1934) and Arrow (1962) that startups play an important role in adapting the economy to new technologies. |
| JEL: | D21 D24 G39 J23 L11 L25 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:ohidic:2023-19&r=sbm |
| By: | Doina Muresan (Dimitrie Cantemir Christian University, Bucharest, Romania) |
| Abstract: | The paper enhances the current understanding of public administration's support for entrepreneurship, providing knowledge that could generate interest in this topic. It analyzes the collaboration among public policies, the public sector, the private sector, and non-governmental organizations, and the following dependent variables: innovation, e-government and digitization, entrepreneurship support ecosystems, and risks in this approach. The academic significance of this research lies in its provision of evidence for the moderating role of NGOs in expanding PPPs to support entrepreneurs. The paper reviews European and national specialized literature in the field of social entrepreneurship. This review focuses on the role of public administrations in supporting social projects and proposes a conceptual model that outlines its empirical boundaries. Additionally, the paper outlines the statistical methods used for this part of the analysis. The findings then lead to suggestions for future research on the role of public administration as a facilitator of social entrepreneurship. |
| Keywords: | public entrepreneurship, public policies, public private partnership, social entrepreneurship |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0303&r=sbm |
| By: | Saumik Paul; Dhushyanth Raju |
| Abstract: | This study examines the effects of mining productivity shocks on the formal-informal duality in manufacturing and services. Using firm census data from 2014 for Ghana, we measure the rates of informality along extensive (unregistered firms) and intensive (registered firms hiring labourers 'off the books') margins. We find that the changes in the rates of informality along both margins across sectors following mining shocks are heterogeneous. |
| Keywords: | Mining, Informality, Firm productivity, Ghana |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-6&r=sbm |
| By: | Matilde Cappelletti (University of Mannheim and ZEW Mannheim); Leonardo Maria Giuffrida (ZEW Mannheim, MaCCI and CESifo); Gabriele Rovigatti (Bank of Italy) |
| Abstract: | In this paper, we investigate the impact of public procurement on business survival. Using Italy as a case study, we construct a large-scale dataset of firms covering balance-sheets, income-statements, and administrative records and match these data with public contract data. Employing a regression discontinuity design for close-call auctions, we find that winners are subsequently more likely to stay in the market than marginal losers and that the boost in survival chances lasts longer than the contract duration. We document that this effect is associated with earnings substitution rather than increased total revenue and that winners experience no increase in productivity. Securing contracts relaxes credit constraints and acts as a mechanism to foster survival. |
| Keywords: | firm survival, firm dynamics, public demand, public procurement, demand shocks, productivity, credit, auctions, regression discontinuity design |
| JEL: | D25 D44 H32 H57 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1439_24&r=sbm |
| By: | Wei Jiang (Xiamen University); Daokang Luo (HKU - The University of Hong Kong); Liwen W.L. Wang (Shenzhen Univerisity [Shenzhen]); Kevin Zheng Zhou (HKU - The University of Hong Kong) |
| Abstract: | While financial globalization serves to diffuse positive corporate practices worldwide, there remains a scarcity of studies investigating the potential of foreign ownership in alleviating corporate bribery-a pervasive illegal practice in emerging markets. This study, rooted in institutional theory, examines how foreign ownership affects corporate bribery expenditures in emerging markets, incorporating crucial factors that encapsulate local regulatory, normative, and cognitive pressures. Leveraging longitudinal panel data on Chinese listed firms, our findings reveal that foreign ownership significantly reduces corporate bribery expenditures, underscoring the disciplining role of foreign investors. Moreover, such effect is weakened by regional corruption and regional gambling prevalence, yet amplified by the overseas experience of top executives. These findings yield insights into how international investors affect bribery in investee firms, considering the intricate fabric of local institutional contexts. |
| Keywords: | bribery, foreign ownership, regional corruption, regional gambling prevalence, overseas experience, emerging markets, bribery foreign ownership regional corruption regional gambling prevalence overseas experience emerging markets |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04432029&r=sbm |
| By: | Heierhoff, Sebastian; Choun, Il-Hyun |
| Date: | 2023–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:142945&r=sbm |
| By: | Bena, Jan (U of British Columbia); Erel, Isil (Ohio State U and ECGI); Wang, Daisy (Ohio State U); Weisbach, Michael S. (Ohio State U and ECGI) |
| Abstract: | The hold-up problem can impair firms' abilities to make relationship-specific investments through contracts. Ownership changes can mitigate this problem. To evaluate changes in the specificity of human capital investments, we perform textual analyses of patents filed by lead inventors from both acquirer and target firms before and after acquisitions. Inventors whose human capital is highly complementary with the patent portfolios of their acquisition partners are more likely to stay with the combined firm post-deal and subsequently make their investments more specific to the partner's assets. As ownership of another firm results in increasingly specific investments to that firm's assets, contracting issues related to relationship-specific investments is likely a motive for acquisitions. |
| JEL: | G34 L14 L22 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:ohidic:2023-27&r=sbm |
| By: | Vincenzo Cuciniello (Bank of Italy); Claudio Michelacci (EIEF); Luigi Paciello (EIEF) |
| Abstract: | Business creation subsidies are a means for reducing firm debt and bankruptcy risk. Do they work? To answer the question, we consider a general equilibrium model where firms are financially constrained at entry and borrow in a competitive market by issuing long-term debt. A subsidy stimulates entry and market competition, which increases the bankruptcy rate of incumbent firms. If the subsidy is paid out ex ante to finance start-up expenditures, the subsidy reduces the debt and the bankruptcy rate of start-ups; if paid out ex post as a refund for start-up expenditures, the subsidy crowds out the equity rather than the debt of start-ups and their bankruptcy rate also increases. The model is calibrated to match North-South differences across Italian provinces. The optimal subsidy in the South is paid out entirely ex ante and yields an increase in welfare equivalent to almost one percent of consumption. When the same subsidy is paid out ex post as a proportion of 60 per cent, it results in a welfare loss of a similar amount. We discuss the implications for the ‘I Stay in the South’ policy recently introduced in Italy. |
| Keywords: | Firm dynamics, overborrowing, ratchet effect |
| JEL: | E44 E62 G32 G33 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1424_23&r=sbm |
| By: | Koski, Heli; Pajarinen, Mika; Rouvinen, Petri |
| Abstract: | Abstract In this brief, we discuss characteristics and consequences of intangible capital, such as brands and patents. The characteristics of intangible capital lead to a tendency for markets to concentrate, to growing disparities between good and bad companies, and to an increasing significance of management and growth entrepreneurship. On an individual level, the increasing importance of intangible capital may result in a rise in inequality. Intangible factors of production are closely related to people and to their flexible utilization in the workplace. Therefore, light regulation of labor and end markets encourages investment in intangible capital. Finland is currently aiming for ”one thousand new doctors” and has also other quantitative goals for developing the national innovation system. While quantitative targets may be necessary, it is important to note that, although intangible capital is scalable from the perspective of its utilization, scaling it itself is challenging in a leap-like manner. Additionally, the characteristics of intangible capital highlight the importance of its quality and context of use. At the very least, this means that competion and creative destruction among businesses as well as growth entrepreneurship are equally worthy topics upon thinking how to develop the national innovation system. |
| Keywords: | Intangible capital, Business investment, Societal policy |
| JEL: | D04 E22 O30 |
| Date: | 2024–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:rif:briefs:134&r=sbm |
| By: | Tan, Yeng-May (Xiamen University Malaysia); Autio, Erkko (Imperial College Business School); Estrada, Gemma (Asian Development Bank); Park, Donghyun (Asian Development Bank); Uddin, Gazi Salah (Linköping University) |
| Abstract: | Information and communication technology or digital technology helped entrepreneurs survive the coronavirus disease (COVID-19) restrictions. For instance, they shifted to online sales in the face of stringent lockdowns and mobility constraints. The enhanced resilience of entrepreneurs, in turn, contributed to the resilience of the broader economy. This study explores the relationship between the quality of a country’s digital entrepreneurial ecosystem, measured by the Global Index of Digital Entrepreneurship Systems (GIDES), and its economic performance during the COVID-19 pandemic. Based on a cross-country analysis of 100 global economies, we find a positive association between GIDES and economic performance during the pandemic. This suggests that the quality of a country’s environment for digital entrepreneurs can strengthen its economic resilience even in the face of major shocks. |
| Keywords: | digital entrepreneurship; digitalization; entrepreneurial ecosystem; economic resilience; COVID-19; Global Index of Digital Entrepreneurship Systems (GIDES) |
| JEL: | F62 L26 L86 |
| Date: | 2024–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0716&r=sbm |
| By: | Benz, Andreas; Demerjian, Peter R.; Hoang, Daniel; Ruckes, Martin E. |
| Abstract: | We examine how division managers' human capital affects internal capital allocation using a hand-collected data set of divisional managers at S&P 1, 500 firms. Based on a novel measure of division-manager ability, we show that more able division managers receive substantially larger capital allocations. This effect is robust to controlling for the possibility of assortative matching and more pronounced for firms with better governance. We also find that the allocation of extra capital to higher-ability managers creates firm value. These findings suggest efficient fund transfers to high-productivity managers and provide support for a largely unexplored bright side of internal capital markets. |
| Keywords: | Managerial Ability, Managerial Efficiency, Human Capital, Capital Budgeting, Investment, Internal Capital Markets |
| JEL: | G31 G32 G34 J24 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitwps:283896&r=sbm |
| By: | Rosa-García, Alfonso |
| Abstract: | This study explores student responses to AI-generated educational content, specifically a teaching video delivered by an AI-replicant of their professor. Utilizing ChatGPT-4 for scripting and Heygen technology for avatar creation, the research investigates whether students' awareness of the AI's involvement influences their perception of the content's utility. With 97 participants from first-year economics and business programs, the findings reveal a significant difference in valuation between students informed of the AI origin and those who were not, with the former group valuing the content less. This indicates a bias against AI-generated materials based on their origin. The paper discusses the implications of these findings for the adoption of AI in educational settings, highlighting the necessity of addressing student biases and ethical considerations in the deployment of AI-generated educational materials. This research contributes to the ongoing debate on the integration of AI tools in education and their potential to enhance learning experiences. |
| Keywords: | AI-Generated Content; Virtual Avatars; Student Perceptions; Technology Adoption |
| JEL: | I23 O33 |
| Date: | 2024–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120135&r=sbm |
| By: | Julien Jacob; Caroline Orset |
| Abstract: | Innovative firms have developed strategies to protect their business interests, such as concealing unfavourable results to avoid product withdrawal from the market (e.g. Monsanto, Servier). This behaviour poses a social challenge, as marketing hazardous products can have costly effects on Society (e.g. health and environment). This paper presents a model where a firm markets a product with unknown dangerousness. However, research investment may furnish valuable insights. A regulatory agency can grant or revoke marketing authorisation for the product based on its determination of the product’s safety. The firm is liable for civil and penal penalties if it causes harm. According to our study, deploying a combination of market authorisation and civil and penal liabilities can effectively disincentive the firm’s advocacy strategy. There is an emphasis on the need to impose penal liability if such lobbying conduct by the firm is uncovered. We examine the effects of these measures on firms’ motivations to invest in research to mitigate scientific uncertainty and the relationship between public and private research. |
| Keywords: | health and environmental risks, information acquisition, innovation, civil liability, penal liability, market authorisation, lobby. |
| JEL: | D01 D72 K32 Q57 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2024-02&r=sbm |
| By: | Verger, Nicolas (Grenoble Ecole de Management); DUYMEDJIAN, Raffi; Roberts, Julie |
| Abstract: | Innovation has often been heralded as important in societal progress. Current innovation practices approach creation as an endless endeavour without much consideration of the end result of those innovations. However, in a world in which natural materials are ever depleting due to extractivism modes of operations that support those same innovations, it becomes increasingly important to reflect upon – and implement – new ways through which innovation comes to an end. In some fields, including Energy Studies and Transition Studies, this process has been labelled “exnovation”. Yet, literature on the subject remains scarce, and its development limited in other fields, notably in organisation and management studies. Part of the reason for this lack of research on exnovation could be explained by a lack of thorough synthesis presenting the concept. In this study, we used bibliometric network analyses to conduct a systematic review. We have critically explored the definition of exnovation across different fields, and identified the fields in which exnovation was (or has not) featured much development. We found two major clusters of fields that leverage the concept of exnovation: transition/energy/sustainability studies, on the one hand; medicine, on the other. There is however not much interconnectivity between these clusters. Moreover, we show that these two clusters do not use the term “exnovation” in the same way. The first cluster has mentioned approaches to exnovation from a global, policy perspective. The second cluster, from a practitioner perspective. This research article then builds on these systematic findings to propose a perspective that reconciles these two views. We propose that, far from being opposite to innovation, exnovation is a complement to it. As much as innovation is the ability to implement an idea; exnovation is the ability to dis-implement it. We further discuss that both are influenced by external factors that regulate them, either from a higher scale (global) policy-side or from a lower scale (local) practice side. We conclude through the concept of “Novation” a process that integrates both in-novation and ex-novation as the input and output of the same continuum. |
| Date: | 2024–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:c2mgk&r=sbm |
| By: | Koefer, Franziska; Bokkens, Amber; Preziuso, Massimo; Ehrenhard, Michel |
| Abstract: | This paper investigates strategies of European microfinance institutions (MFIs) and inclusive FinTech organisations to address financial and digital illiteracy among vulnerable customers. It reveals that both MFIs and FinTech organisations focus on personalised financial education, training and coaching but adopt distinct strategies in their approach.The study highlights the crucial role of support teams in enhancing literacy and recommends a balance between digitalisation and human interaction, alongside advocating for governmental and EU educational initiatives. This is the third paper resulting from a research project on 'Strengthening Financial Inclusion through Digitalisation' (SFIDE), initiated by EIF's Research & Market Analysis division. The project is funded by the EIB Institute under the EIB-University Sponsorship Programme (EIBURS). It aims to investigate the potential of technological and financial innovation to increase the efficiency of the inclusive finance sector, through the identification and promotion of best practices. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eifwps:283601&r=sbm |
| By: | Lo\"ic Mar\'echal; Alain Mermoud; Dimitri Percia David; Mathias Humbert |
| Abstract: | Early-stage firms play a significant role in driving innovation and creating new products and services, especially for cybersecurity. Therefore, evaluating their performance is crucial for investors and policymakers. This work presents a financial evaluation of early-stage firms' performance in 19 cybersecurity sectors using a private-equity dataset from 2010 to 2022 retrieved from Crunchbase. We observe firms, their primary and secondary activities, funding rounds, and pre and post-money valuations. We compare cybersecurity sectors regarding the amount raised over funding rounds and post-money valuations while inferring missing observations. We observe significant investor interest variations across categories, periods, and locations. In particular, we find the average capital raised (valuations) to range from USD 7.24 mln (USD 32.39 mln) for spam filtering to USD 45.46 mln (USD 447.22 mln) for the private cloud sector. Next, we assume a log process for returns computed from post-money valuations and estimate the expected returns, systematic and specific risks, and risk-adjusted returns of investments in early-stage firms belonging to cybersecurity sectors. Again, we observe substantial performance variations with annualized expected returns ranging from 9.72\% for privacy to 177.27\% for the blockchain sector. Finally, we show that overall, the cybersecurity industry performance is on par with previous results found in private equity. Our results shed light on the performance of cybersecurity investments and, thus, on investors' expectations about cybersecurity. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.04765&r=sbm |
| By: | Yulin Yu; Daniel M. Romero |
| Abstract: | Scientific datasets play a crucial role in contemporary data-driven research, as they allow for the progress of science by facilitating the discovery of new patterns and phenomena. This mounting demand for empirical research raises important questions on how strategic data utilization in research projects can stimulate scientific advancement. In this study, we examine the hypothesis inspired by the recombination theory, which suggests that innovative combinations of existing knowledge, including the use of unusual combinations of datasets, can lead to high-impact discoveries. We investigate the scientific outcomes of such atypical data combinations in more than 30, 000 publications that leverage over 6, 000 datasets curated within one of the largest social science databases, ICPSR. This study offers four important insights. First, combining datasets, particularly those infrequently paired, significantly contributes to both scientific and broader impacts (e.g., dissemination to the general public). Second, the combination of datasets with atypically combined topics has the opposite effect -- the use of such data is associated with fewer citations. Third, younger and less experienced research teams tend to use atypical combinations of datasets in research at a higher frequency than their older and more experienced counterparts. Lastly, despite the benefits of data combination, papers that amalgamate data remain infrequent. This finding suggests that the unconventional combination of datasets is an under-utilized but powerful strategy correlated with the scientific and broader impact of scientific discoveries. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.05024&r=sbm |
| By: | Mollisi Vincenzo (Department of Economics, Social Studies, Applied Mathematics and Statistics, University of Torino, Torino, Italy;) |
| Abstract: | Public authorities have increasingly resorted to public-private partnership (PPP) arrangements for the delivery of public services. A PPP bundles the construction, management, and maintenance of a facility in a unique contract. Using data from the Italian district heating industry, I find that PPP internalizes the technological externality between construction and operation tasks of a project by inducing a higher level of capital quality. A unit increase in the capital quality raises the output of PPP firms by 17%. |
| Keywords: | Populism, Industry Productivity, Public-private Partnerships, Public-service Provision |
| JEL: | H54 H57 L11 D86 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:tur:wpapnw:088&r=sbm |
| By: | Olivier Coussi (CEREGE - Centre de Recherche en Gestion - UP - Université de Poitiers = University of Poitiers, FED 4229 - Fédération Territoires - UP - Université de Poitiers = University of Poitiers - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Bastien Bernela |
| Abstract: | For many years, public policies for territorial economic development have been inspired by symbols such as Silicon Valley, fueling the dreams of local elected officials. While evaluation processes allow us to assess the efficiency and ex-post performance of the territorial development paths taken, they do not provide a complete understanding of the mechanisms at work in their manufacture. This qualitative research focuses inductively on the genesis and evolution of Futuroscope, an emblematic and atypical figure in the development of a rural area, through a long-term case study. We therefore propose a secondary analysis in the form of a supra-analysis to clarify the mechanisms at work and to shed light on the case with the help of a specific theoretical approach. We show that territorial development does not necessarily produce a territorial ecosystem, or more precisely, that the implementation of a project can generate activity on a territory without sustainably creating productive interactions between stakeholders - interactions that are essential for the qualification of the ecosystem. While territorial development theory neglects the dimension of "public action" and the role of elected representatives as political entrepreneurs, we contribute to this literature by proposing the concept of "territorial bricolage" as a mechanism for producing a territorial development path. The identification of this mechanism of territorial innovation should be a source of inspiration for territorial managers in the implementation of public policies. In particular, in crisis situations, this innovation modality could produce a capacity for territorial resilience, in a combination of bricolage, effectuation and causation. |
| Abstract: | Les politiques publiques de développement économique territorial s'inspirent depuis de nombreuses années de symboles comme celui de la Silicon Valley, alimentant les rêves des élus locaux. Si les processus d'évaluation permettent de dresser un état de l'efficience et de la performance ex post des chemins de développement territorial empruntés, ils ne permettent pas totalement de comprendre les mécanismes à l'œuvre dans leur fabrique. Cette recherche s'intéresse, de façon inductive, à la genèse et au développement du Futuroscope, figure emblématique et atypique du développement d'un territoire rural, au travers d'une étude de cas qualitative sur un temps long. Alors que la théorie du développement territorial néglige la dimension « action publique » et le rôle de l'élu comme entrepreneur politique, nous contribuons à cette littérature en proposant le concept de « bricolage territorial » comme mécanisme de production d'un chemin de développement territorial. |
| Keywords: | Bricolage, Développement territorial, Écosystème, Entrepreneur politique, Futuroscope |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04452686&r=sbm |
| By: | Rosalia Greco (Bank of Italy) |
| Abstract: | Since 2000, Italy's output growth lagged behind countries like Germany, France, and Spain, primarily due to weak labor productivity dynamics. Italy's labor productivity growth, especially low before the Great Recession, showed a small improvement afterwards, driven by the business sector. Productivity growth and levels vary across sectors, with the industrial sector generally outperforming market services in all countries. Italy's low aggregate growth, however, cannot be traced back to a composition tilted towards low productivity sectors, rather to across-the-board insufficient sectors' productivity growth. Few exceptions emerge in the industrial sector in 2014-2019: some manufacturing sectors that are more exposed to international trade exhibited higher productivity growth in Italy than elsewhere. Investment affects labor productivity growth through capital deepening. Investment trends, influenced by the financial crisis, varied across countries and sectors. Investment in intangibles (especially important for innovation) consistently increased, while investment in other assets fluctuated, with Italy and Spain experiencing delayed recovery. Intangibles constituted a larger share of investment in the industrial sector, and were most relevant in France. |
| Keywords: | labor productivity, growth, investment |
| JEL: | E22 E24 O47 O52 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_825_23&r=sbm |
| By: | Hasan, Amena; Dowla, Asif-Ud; Tarannum, Ramisa |
| Abstract: | This research paper examines the impact of financial inclusion on the economic growth of developing nations, with a focus on Bangladesh. It reviews existing literature and develops hypotheses related to savings, capital mobilization, entrepreneurship, poverty alleviation, financial stability, and formalization of the economy. The paper presents a conceptual framework illustrating the pathways between financial inclusion and economic growth indicators. Data analysis shows a positive correlation between financial inclusion and GDP growth, as well as a link to poverty reduction. The paper concludes with policy implications for promoting financial inclusion in Bangladesh. |
| Keywords: | Financial inclusion, economic growth, Bangladesh, poverty alleviation, financial stability |
| JEL: | D8 E4 H3 M2 |
| Date: | 2024–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120213&r=sbm |
| By: | Amelie Villeger (IRGO - Institut de Recherche en Gestion des Organisations - UB - Université de Bordeaux - Institut d'Administration des Entreprises (IAE) - Bordeaux) |
| Abstract: | By mobilizing the theoretical field of decision-making and the empirical study of 15 cases, this article highlights and analyzes the recurrence of conjugal interactions leading to the decision to undertake as a couple. The results show that the spouse who initiates the project becomes the ‘leader', while the other positions himself, more or less voluntarily, as a ‘follower'. This decision-making configuration induces a renunciation on the part of the follower, a follower who remains, still today, overwhelmingly the woman. The discussion considers the potential impact of this specific decision-making process on the future governance of the company, in terms of the distribution of roles and powers, the satisfaction of spouses, but also the choice of partner. The movement of the reflexive cursor in a period prior to the copreneurial installation enriches the field of research, almost unexplored, of the decision to undertake as a couple, opens the way to the study of problems of copreneurship through the innovative prism of events that have occurred before its implementation and offers practitioners new keys to understanding the complex dynamics within which they evolve. © 2023 Villéger. |
| Keywords: | Family business, Decision, Copreneurs, Entrepreneurship, Couple, Leader, Follower |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04429515&r=sbm |
| By: | Ozili, Peterson K |
| Abstract: | This chapter examines the role of embedded finance in increasing financial inclusion. The author shows that embedded finance increases financial inclusion by changing the way banked adults, unbanked adults and SMEs interact with financial services. Embedded finance provides greater access to finance for underserved adults and businesses and generates revenue for embedded finance service providers and banks, thereby presenting a win-win opportunity for both the users and providers of embedded financial services. |
| Keywords: | Financial inclusion, embedded finance, embedded payments, unbanked adults, poverty. |
| JEL: | I30 I31 I38 I39 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120155&r=sbm |
| By: | Krämer-Eis, Helmut; Botsari, Antonia; Gvetadze, Salome; Lang, Frank; Torfs, Wouter |
| Abstract: | This working paper provides an overview of the main markets relevant to the EIF, thereby documenting the impact of the polycrisis and the related challenging economic environment on SME financing. The publication first discusses the general market environment and then covers the markets for SME equity and debt products. In addition, it focuses on a number of thematic policy areas that are of particular interest to the EIF, such as Inclusive Finance, Fintech and Green finance & investment. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eifwps:283600&r=sbm |