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on Small Business Management |
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Issue of 2024‒04‒01
27 papers chosen by |
| By: | Füner, Lena; Berger, Marius; Bersch, Johannes; Hottenrott, Hanna |
| Abstract: | New business formation is a key driver of regional transformation and development. While we know that a region's attractiveness for new businesses depends on its resources, infrastructure, and human capital, we know little about the role of local business networks in promoting or impeding the birth of new firms. We construct local business networks connecting more than 350 million nodes consisting of managers, owners and firms using administrative data on all German businesses from 2002 to 2020. Differentiating between serial and de-novo entrepreneurs, we show a positive but decreasing relation between a region's connectedness and firm entry of serial entrepreneurs. Networks are, moreover, positively linked to firm survival. Relating our findings to a measure of ownership concentration, we show that networks provide additional explanations for regional variation in new business formations. These patterns are robust to synthetic instrumental variable estimations |
| Keywords: | New Firm Formation, Business Networks, Serial Entrepreneurship, RegionalDynamics, Ownership Concentration |
| JEL: | L14 L26 M13 O31 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283589&r=sbm |
| By: | Perez-Alaniz, Mauricio; Lenihan, Helena; Doran, Justin; Rammer, Christian |
| Abstract: | Public financial support for firm-level Research and Innovation (R&I) can generate important socio-economic returns. This is especially true if firms use this support to develop radical innovation, defined as new-to-market goods and services. However, radical innovation is risky, and prone to failure. Therefore, subsidising radical innovation can also generate sub-optimal socio-economic returns (i.e. policy failure). Understanding how public funding for R&I can be allocated in a way that encourages radical innovation, while avoiding policy failure, is crucial. Our paper investigates, for thefirst time, whether public fundingfor R&I generates more radical innovation in firms seeking to innovate by engaging in knowledge areas that are new to them, versus firms seeking to exploit their existing knowledge base. We make this distinction by using a novel approach, based on the knowledge challenges that firms face when innovating. By merging firm-level survey data with administrative data on public funding for R&I in Ireland, we find that subsidising firms seeking to engage in new knowledge areas, can result in more radical innovation and turnover from radical innovation, compared to firms seeking to exploit their existing knowledge base. These are critical insights from theoretical and policymaking perspectives, regarding the allocation of public funding for R&I. |
| Keywords: | radical innovation, public financial support, knowledge base, policy failure, additionality |
| JEL: | D83 O31 O32 O33 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283615&r=sbm |
| By: | Tiago Cavalcanti; Kamiar Mohaddes; Hongyu Nian; Haitao Yin |
| Keywords: | Pollution, human capital, knowledge, innovation, China |
| JEL: | O15 O30 O44 Q51 Q56 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2301&r=sbm |
| By: | Peiffer-Smadja, Océane; Mitra, Alessio; Ravet, Julien; Di Girolamo, Valentina |
| Abstract: | This paper uses multiple linear and fractional probit regressions to assess the importance of regional research capacities and assets, as well as intrinsic characteristics of the regions in defining success in the European R&I Framework Programme. We find that quality of research outputs matters more than quantity, particularly in projects targeting societal challenges, while quality of patenting activity matters more than quantity, particularly in projects targeting industrial objectives. Less-developed regions benefit from improved institutions, while advanced regions gain from increased R&D and human resources investments. We provide recommendations on how regions can improve their capacity to participate in the EU FP for R&I. |
| Keywords: | European R&I Framework Programme, Regional innovation |
| JEL: | O38 R58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:283908&r=sbm |
| By: | Jeong Lee, So; Jin Seo, Su |
| Abstract: | The rapid evolution of digital technologies has reshaped global business, forcing not only large but also small and medium-sized enterprises (SMEs) to embrace digital trade. Nevertheless, many SMEs are struggling to fully implement digital technologies. Against this backdrop, the Republic of Korea has bolstered its support for SMEs, with a focus on human capital development, financing, and research and development. Furthermore, the country has revised its trade regulations and frameworks, placing significant emphasis on digital capacity-building and the alignment of regulations with international standards. Despite the disparities in digital infrastructure and skills, the experience of the Republic of Korea is a useful model for Latin America and the Caribbean, offering invaluable insights for policymakers, businesses and stakeholders seeking to navigate the evolving digital landscape and facilitate SME growth and internationalization. In addition, deeper collaboration could be pursued between the Republic of Korea and the region, in particular in the realms of expanding and enhancing access to information and communications technologies (ICTs), upskilling the workforce, strengthening data protection and broadening the scope of trade to include digital services. |
| Date: | 2024–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68876&r=sbm |
| By: | Adair Morse |
| Abstract: | The provision of venture debt financing to growth-oriented startups which are backed by venture capital (VC) equity has been a bit of a puzzle given the lack of positive cash flows or traditional collateral of such startups. This short paper lays out the hurdles for debt to overcome to be a viable source of finance and casts the three types of venture debt – patent loans, venture leverage, and bridge loans – as solutions to such hurdles, casting the literature in terms of financial innovation. Finally, the paper addresses the risks implied by venture debt and discusses whether the demise of Silicon Valley Bank speaks to whether innovation ecosystem risk transmutes to the financial system through debt and the extent to which innovation ecosystem risk remains unstudied. |
| JEL: | G24 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32183&r=sbm |
| By: | Philipp Boeing; Loren Brandt; Ruochen Dai; Kevin Lim; Bettina Peters |
| Abstract: | We study the evolution of patenting in China from 1985-2019. We use a Large Language Model to measure patent importance based on patent abstracts and classify patent ownership using a comprehensive business registry. We highlight four insights. First, average patent importance declined from 2000-2010 but has increased more recently. Second, private Chinese firms account for most of patenting growth whereas overseas patentees have played a diminishing role. Third, patentees have greatly reduced their dependence on foreign knowledge. Finally, Chinese and foreign patenting have become more similar in technological composition, but differences persist within technology classes as revealed by abstract similarities. |
| Keywords: | Innovation Patents Technology China |
| JEL: | O3 |
| Date: | 2024–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-770&r=sbm |
| By: | Berlingieri, Giuseppe; Blanchenay, Patrick; Criscuolo, Chiara |
| Abstract: | This paper provides new evidence on the increasing dispersion in wages and productivity using a unique micro-aggregated firm-level data source, representative for the full population of firms in 12 countries. First, we document an increase in wage and productivity dispersions, for both manufacturing and market services, and show that the increase is mainly driven by the bottom of the wage and productivity distributions. Second, we show that between-firm wage dispersion increased more in sectors that experienced an increase in productivity dispersion; the estimated elasticity is larger at the bottom than at the top of the wage/productivity distributions, consistent with a framework in which more productive firms charge higher mark-ups and/or larger wage mark-downs. Third, we find that both globalisation and digitalisation strengthen the link between productivity and wage dispersion. Our results suggest that policies designed to mitigate wage inequality must take into consideration gaps between firms of the same sectors, and how both globalisation and digitalisation affect these gaps. |
| Keywords: | digitalisation; dispersion; globalisation; productivity; wages |
| JEL: | J50 |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122046&r=sbm |
| By: | Ali-Yrkkö, Jyrki; Kuosmanen, Natalia; Pajarinen, Mika; Ylhäinen, Ilkka |
| Abstract: | Abstract This report examines the resilience of firms during crises from two perspectives: their ability to resist crises and their capacity to recover. The findings reveal that innovative firms are less likely to cease operations than other firms and are more likely to recover faster. The study further supports the notion that a high level of solvency and a strong ability to make interest payments (interest coverage ratio) reduce the risk of a firm exiting the market or experiencing an exceptionally large decline in revenue. |
| Keywords: | Resilience, Crisis, Firms |
| JEL: | F14 L8 |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:146&r=sbm |
| By: | Hernández, Juan; Wills, Daniel |
| Abstract: | Financiers in early-stage entrepreneurial finance are known for their “spray-and-pray” approach, where they fund multiple start-ups expecting profits on a few to compensate losses on a lot of failed ones. We develop a theoretical framework in which financiers compete to fund entrepreneurs in an environment featuring risk, adverse selection, and limited liability. Financiers use steep payoff schedules to screen entrepreneurs, but limited liability implies they can only do so by giving more to all entrepreneurs. In equilibrium, competition for the best entrepreneurs forces intermediaries to offer better terms to all customers, there is cross-subsidization among entrepreneurs, and intermediation profits are zero. Competition among financial intermediaries always forces them to fund projects with negative expected returns both from a private and from a social perspective. This is an extensive margin inefficiency, as all projects are funded at their efficient scale. The three main features of our framework (competition, adverse selection, and limited liability) are necessary to get the inefficient laissez-faire outcome and a role for regulation. The inefficiency shrinks, but some part will always persist, when firms can collateralize some portion of the credit as long as there is still an unsecured fraction. Additional imperfect information, like a credit score, may increase inefficiency. Crucially, a small externality on financiers exacerbates the extensive margin inefficiency, yielding a negative social surplus in the entrepreneurial financing market. |
| Keywords: | Adverse selection;Entrepreneurial Finance;Competition;Extensive margin inefficiency |
| JEL: | D82 G14 G28 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13362&r=sbm |
| By: | Shreya Biswas (Birla Institute of Technology and Science, Pilani, Hyderabad Campus); Jayati Sarkar (Indira Gandhi Institute of Development Research); Ekta Selarka (Madras School of Economics) |
| Abstract: | This paper empirically examines the impact of network ties of women directors on firm value and sheds light on the unaddressed issue of whether such ties can serve as one of the channels through which women on board affect firm performance. In doing so, the study also seeks to provide a gendered perspective of the performance effects of interlocking directorates on which empirical evidence is scant. Using a panel of listed firms in India for the period 2010-2020 covering periods of pre and post institution of gender quota on company boards, our study finds that women director connectedness, as captured in select network centrality measures, has a positive and robust effect on firm value. We further find evidence that the positive relationship with firm value is driven by the information advantage and influence of women director networks. Finally, based on a director level analysis, we find that more connected women directors, including those who are independent, contribute to corporate governance through higher meeting attendance, and through their memberships in important committees. The findings of the paper highlight the unique role of women director interlocks in firm governance and performance. |
| Keywords: | Interlocking directors, Firm value, Woman directors, Network centrality, India, Emerging markets |
| JEL: | G32 G34 G38 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2023-016&r=sbm |
| By: | Emiliano Alzate (University of Barcelona,); Oscar Claveria (AQR-IREA, University of Barcelona) |
| Abstract: | We propose a new approach for the visual inspection of the dynamic interplay between several determinants of entrepreneurship and other socioeconomic variables. We focused on the evolution of these variables in 23 countries from 2010 to 2020. First, we ranked the countries according to their growth during the sample period. Second, we clustered the different states by means of a dimensionality-reduction technique that enabled synthesising the ordinal information of the rankings into two dimensions. Finally, countries were projected into a perceptual map according to their scores in both dimensions. We replicated the analysis both for 2020 and for the growth observed during the decade. In both cases, we observed two clusters of countries that roughly correspond to European and Latin American economies. Angola obtained top scores in the two dimensions both in 2020 and during the decade. Regarding the interactions among variables, for 2020 we observed that earlystage entrepreneurship shows a negative association with access to financing and human development. During the decade, we observed a positive link between early-stage entrepreneurship and market dynamism, which in turn showed no connection with human development. These findings somehow suggest that the relative importance of the determinants of entrepreneurship evolved throughout the decade. |
| Keywords: | Entrepreneurship; National-level determinants; Institutional environment; Human development; Inequality; Multivariate analysis JEL classification: L26; L53; O43; C38 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:202309&r=sbm |
| By: | Brahim FATHALLAH (UH2C - Université Hassan II de Casablanca (UH2C)); Latifa HORR (UH2C - Université Hassan II de Casablanca (UH2C)) |
| Abstract: | People are today at the center of public policies in most countries. To this end, many programs have been developed to substantiate the role of this resource in the socio-economic areas of these countries. Indeed, the human element plays a fundamental role in the development of a country. Youth entrepreneurship, in particular, constitutes an important factor in integrating young people into the economic and social fabric. In Morocco, the National Initiative for Human Development (INDH) plays a leading role in encouraging youth entrepreneurship. This initiative, launched in 2005, aims to reduce social and economic disparities by encouraging young people to create their own businesses. This article aims to analyze the contribution of the NIHD, particularly in its third phase through Program III, to the promotion of youth entrepreneurship in Morocco by highlighting different actions implemented and their impacts. A qualitative method was adopted. This includes studying a sample of 256 projects presented by young entrepreneurs at the level of youth platforms in the prefecture of the Mohammadi district of Ain Sebaa in Casablanca, during the period (2019 - 2022). The results of the content analysis show that the NIHD has significantly contributed to promoting youth entrepreneurship, especially by creating financing mechanisms adapted to this sector and improving the living conditions of the poor population. |
| Abstract: | L'Homme est, de nos jours, au centre des politiques publiques dans plusieurs pays. A cet effet, de nombreux programmes ont été développé pour concrétiser le rôle de cette ressource dans les domaines socio-économiques de ces pays. En effet, l'élément humain joue un rôle fondamental dans le développement économique et constitue une référence pour l'économie sociale. L'entrepreneuriat des jeunes, en particulier, constitue un facteur important pour intégrer les jeunes dans le tissu économique et social. Au Maroc, l'Initiative Nationale pour le Développement Humain (INDH) joue un rôle de premier plan dans l'encouragement de l'entrepreneuriat des jeunes. Cette initiative, lancée en 2005, vise à réduire les disparités sociales et économiques tout en favorisant l'intégration des jeunes dans la vie économique. Cet article a pour but d'analyser la contribution de l'INDH, notamment dans sa troisième phase à travers le programme III, dans la promotion de l'entrepreneuriat des jeunes au Maroc en mettant en avant les différentes actions entreprises et leurs impacts. Une méthode qualitative a été adoptée. Il s'agit d'étudier un échantillon de 256 projets présentés par des jeunes entrepreneurs au niveau des plateformes des jeunes, à la préfecture Hay Mohammadi Ain Sbaa à Casablanca, au cours de la période (2019 – 2022). Une analyse du contenu a été utilisée pour analyser les données collectées, elle montre une contribution significative de l'INDH dans la promotion de l'entrepreneuriat chez les jeunes, notamment par la mise en place de mécanismes de financement appropriés pour ce secteur et l'amélioration des conditions de vie des populations pauvres. |
| Date: | 2024–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04456993&r=sbm |
| By: | Miguel Antón; Florian Ederer; Mireia Giné; Martin C. Schmalz |
| Abstract: | Firms have inefficiently low incentives to innovate when other firms benefit from their inventions and the innovating firm therefore does not capture the full surplus of its innovations. We show that common ownership of firms mitigates this impediment to corporate innovation. By contrast, without technological spillovers, innovation has the effect of stealing market share from rivals; in that case, more common ownership reduces innovation. Empirically, the association between common ownership and innovation inputs and outputs decreases with product market proximity and increases with technology proximity. The sign and magnitude of the overall relationship between common ownership and corporate innovation thus varies considerably across the universe of firms depending on their relative proximity in technology and product market space. These results persist if we use only variation from BlackRock's acquisition of BGI. Our results inform the debate about the welfare effects of increasing common ownership among U.S. corporations. |
| JEL: | G30 L20 L40 O31 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32192&r=sbm |
| By: | Emanuela Cerrato (Bank of Italy); Enrica Detto (Bank of Italy); Daniele Natalizi (Bank of Italy); Federico Semorile (Bank of Italy); Fabio Zuffranieri (Bank of Italy) |
| Abstract: | Technology providers have taken on the crucial role in supporting the financial sector, enabling firms – even small ones – to become more efficient and keep pace with innovation. Yet, the interdependencies between such providers and financial entities may pose new systemic risks, deserving the attention of financial regulators and overseers. This paper presents the authorities’ point of view, focusing on the payments sector; it demonstrates how numerous initiatives at international and national level have made a consistent and dynamic effort to create a regulatory and policy framework aimed at balancing security with innovation. |
| Keywords: | payment system, market infrastructure, third parties, digital operational resilience, DORA, regulation, oversight |
| JEL: | E42 G32 G38 O33 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wpmisp:mip_047_24&r=sbm |
| By: | Alexander Cuntz; Carsten Fink; Hansueli Stamm |
| Abstract: | The emergence of Artificial Intelligence (AI) has profound implications for intellectual property (IP) frameworks. While much of the discussion so far has focused on the legal implications, we focus on the economic dimension. We dissect AI's role as both a facilitator and disruptor of innovation and creativity. Recalling economic principles and reviewing relevant literature, we explore the evolving landscape of AI innovation incentives and the challenges it poses to existing IP frameworks. From patentability dilemmas to copyright conundrums, we find that there is a delicate balance between fostering innovation and safeguarding societal interests amidst rapid technological progress. We also point to areas where future economic research could offer valuable insights to policymakers. |
| Keywords: | Artificial Intelligence, Intellectual Property, Patents, Copyright |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:77&r=sbm |
| By: | Elizabeth Steiner |
| Abstract: | This paper estimates the impact of exchange rate fluctuations on markups. Firm-level markups are estimated for a comprehensive panel of Swiss manufacturing firms for the period 2012-2017 using a production-function approach. The pass-through of the exchange rate is then estimated using an event-study design exploiting the large, sudden and persistent appreciation of the Swiss franc against the euro in January 2015. The results show that following an appreciation, Swiss manufacturing firms adjust their markup very heterogeneously. Large firms, especially those that invoice in foreign currency or are highly profitable, substantially decrease their markup. Owing to their sheer size, large firms shape the aggregate response. In contrast, the average firm does not respond significantly. This suggests that smaller firms, which are in the majority, are either unable or unwilling to absorb exchange rate movements by adjusting their markup. |
| Keywords: | Markup, Exchange rate, Pass-through, Firm-level data |
| JEL: | D22 D24 F12 F14 F41 F23 L11 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:snb:snbwpa:2024-02&r=sbm |
| By: | Ali-Yrkkö, Jyrki; Kuosmanen, Natalia; Pajarinen, Mika; Ylhäinen, Ilkka |
| Abstract: | Abstract The Finnish economy exhibits greater fluctuations than many other countries, which can be attributed, in part, to its relatively small size. However, this does not fully explain why Finland’s economy is more volatile than those of most other small countries. Firms have the capacity to influence their crisis resilience through actions, such as maintaining solvency and a strong capacity to pay interest. Additionally, engaging in innovation activities is closely linked to a firm’s ability to maintain operations during challenging times. |
| Keywords: | Crisis, Firms, Resilience, Resistance |
| JEL: | F14 L8 |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:rif:briefs:135&r=sbm |
| By: | Ghizlane Barzi (ENCGS - Ecole Nationale de Commerce et de Gestion de SETTAT); Zineb Bamousse (ENCGS - Ecole Nationale de Commerce et de Gestion de SETTAT) |
| Abstract: | The financial sector represents a major challenge for researchers, as it is undergoing exponential change. The financial function is at the heart of debates in management science studies, as it lies at the heart of the ongoing transformation of organizations. It is an essential pole of analysis, forecasting and dissemination of financial culture in Moroccan companies. Indeed, the aim of this study is to analyze the relationship between the development of innovative management in the finance function and corporate performance, particularly in the Moroccan context. Furthermore, to present the important role of the CFO as a leader of innovation and guarantor of development. To this end, an exploratory study was carried out among 15 major Moroccan companies in various sectors. The results of this study demonstrated the interest of CFOs in adopting innovation tools in their activities, and presented innovation as a genuine performance lever. |
| Abstract: | Le secteur financier constitue un enjeu majeur pour les chercheurs puisqu'il est dans une évolution exponentielle. La fonction financière est le centre névralgique des débats dans les études en sciences de gestion vue qu'elle se situe au cœur des transformations continues des organisations. Elle est un pôle incontournable d'analyse, de prévision et de diffusion de la culture financière dans les entreprises marocaines. En effet, l'objectif de cette étude est d'analyser la relation entre le développement d'une gestion innovante dans la fonction financière et la performance des entreprises, particulièrement dans le contexte marocain. De plus, présenter le rôle important du directeur financier en tant que leader de l'innovation et garant du développement. A ce propos, une étude exploratoire a été réalisée auprès de 15 grandes entreprises marocaines des différents secteurs. Les résultats de cette étude ont montré l'intérêt des directeurs financiers à adopter les outils de l'innovation dans leurs activités et ont présenté l'innovation comme étant un véritable levier de la performance. |
| Keywords: | Secteur financier Gestion innovante Performance des entreprises Innovation Développement organisationnel Culture financière Numéro 2 2024, Secteur financier, Gestion innovante, Performance des entreprises, Innovation, Développement organisationnel, Culture financière |
| Date: | 2024–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04463646&r=sbm |
| By: | Kruft, Tobias; Kock, Alexander |
| Abstract: | Employees' innovative behaviour becomes increasingly important for organizational success. Companies try to improve their innovation capabilities by supporting and motivating employees to show innovative behaviour. Particularly online ideation platforms become relevant because they create new opportunities for employees to be innovative. This paper investigates how exposure to online ideation platforms' unique capabilities stimulates intrinsic motivation toward innovative behaviour and ultimately the submission of high‐quality ideas. Based on expectancy and channel expansion theories, we derive a framework with four intrinsic motivational forces that online ideation platforms can stimulate. A two‐study approach empirically tests this framework. The first study uses a multilevel regression on a dataset of 1630 employees nested in 136 departments of a leading international science and technology company. The second study analyses how 279 employees of the same company, who submitted 678 ideas on the company's online ideation platform, continue to be motivated by the platform's inherent characteristics and capabilities and submit high‐quality ideas. The results support the core argument that online ideation platforms stimulate certain desires motivating employees to engage in innovative behaviour and ultimately submit high‐quality ideas. The detailed results offer several contributions to innovation management literature and beyond. |
| Date: | 2024–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:143150&r=sbm |
| By: | Bartlett, Robert P. (Stanford U) |
| Abstract: | This study examines the standardization of venture capital (VC) contracts since the release of the National Venture Capital Association (NVCA) model charter in 2003. Using nearly 5, 000 charters issued in connection with a startup's Series A financing, the paper finds a significant increase in the model's adoption from less than 3% of charters in 2004 to nearly 85% by 2022. Adoption of the Delaware-oriented charter has also been accompanied by the growing dominance of Delaware incorporation, with Delaware charters growing from 54% of sample charters in 2004 to 100% in 2022. High adoption rates among the six most active law firms servicing U.S. startups largely explain the success of the standardization project. While cosine similarity analysis reveals charters are overall more similar in 2022 than in 2004, the capital structures of Series A startups have also become substantially more complex. Series A charters authorizing only a single class of common stock and a single series of "Series A" preferred stock constituted 86% of charters in 2004 but constituted just 5% of 2022 charters, while 30% of 2022 charters had either 2 classes of common stock or 3 or more series of preferred stock. The additional complexity arises almost entirely from multiple securities reflecting prior seed stage financing. In contrast, efforts to add founder-friendly capital securities--such as dual class common stock and founder preferred stock--have made only modest inroads. Overall, the story of VC contracting over the past two decades is largely one of standardization, albeit with growing complexity around startup capital structures due to the increasing importance of seed stage capital and changing expectations regarding what constitutes a "Series A" startup. |
| JEL: | G24 G32 K22 M13 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:4124&r=sbm |
| By: | Weber, Karl Matthias; Giesecke, Susanne; Havas, Attila; Schartinger, Doris; Albiez, Andreas; Horak, Sophia; Blind, Knut; Bodenheimer, Miriam; Daimer, Stephanie; Shi, Liu; Stadler, Maria; Schmitz, David |
| Abstract: | The importance of social innovation for overcoming societal challenges is now widely recognised. In addition to their contribution to the transformation of socio-technical systems, they are also assigned an important role in flanking disruptive technological developments and coping with crisis situations such as the COVID-19 pandemic. At the same time, the theoretical understanding of social innovations is very heterogeneous, which is detrimental to both the development of measurement concepts and indicators and the well-founded derivation of innovation policy measures. Building on recent research, a conceptual process model of social innovation is developed and subsequently used to analyse four case studies (energy communities, autonomous driving, corona warning app, social housing in Vienna). In addition, the report deals with rationales for justifying state interventions in social innovation, as well as with the use of new policy instruments to support social innovations in four pioneering countries. It also assesses the current state of research on the measurement and indicators of social innovation. It concludes with implications for the research and innovation policy debate in Germany. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:efisdi:284388&r=sbm |
| By: | Gilad Sorek |
| Abstract: | I study Schumpeterian growth under Variable Demand Elasticity preferences in a canonical Two-R&D-sector model with both vertical and horizontal innovation. Within this framework, I show how the departure from the traditional CES specification alters both the positive and normative characteristics of the Schumpeterian growth dynamics: (a) for a sufficiently high population growth rate relative to the innovation opportunity, there is a balanced growth path -"BGP"- of drastic innovation where the innovation size is determined by the population growth rate, that is growth is semi-endogenous. However, for a sufficiently low population growth rate, the model economy converges to the limit values of demand elasticity and to fully endogenous growth (b) Along the BGP with innovation size equal to the population growth rate, welfare is maximized with a higher ratio of product varieties per consumer and a lower per-variety output. |
| Keywords: | Schumpeterian Growth; Variable Demand Elasticity; Population Growth and Technological Progress |
| JEL: | O30 O40 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:abn:wpaper:auwp2024-04&r=sbm |
| By: | Paul Beaumont; Huan Tang; Éric Vansteenberghe |
| Abstract: | This paper investigates the impact of introducing junior unsecured loans via FinTech crowdlending platforms in the small business lending market. Using French administrative data, we find that FinTech borrowers experience a 20% increase in bank credit following FinTech loan origination. We establish causality using a shift-share instrument exploiting firms’ differential exposure to banks’ collateral requirements. The credit expansion only occurs when FinTech borrowers invest in new assets, and Fintech borrowers are subsequently more likely to pledge collateral to banks. This suggests that firms use FinTech loans to acquire assets that they then pledge to banks, thereby increasing their total borrowing capacity. <p> Cet article examine l'impact de l'introduction de prêts non garantis juniors via les plateforme FinTech de crowdlending sur le marché du prêt aux petites entreprises. En utilisant des données administratives françaises, nous constatons que les emprunteurs FinTech connaissent une augmentation de 20% de leur crédit bancaire suite à l'origination du prêt FinTech. Nous établissons la causalité en utilisant un instrument dit shiftshare qui exploite l'exposition différentielle des entreprises aux exigences de garantie des banques. L'expansion du crédit ne se produit que lorsque les emprunteurs FinTech investissent dans de nouveaux actifs, et ces emprunteurs FinTech sont par la suite plus susceptibles de mettre en gage des garanties aux banques. Cela suggère que les entreprises utilisent les prêts FinTech pour acquérir des actifs qu'elles mettent ensuite en gage aux banques, augmentant ainsi leur capacité d'emprunt totale. |
| Keywords: | FinTech, SMEs, small business lending; FinTech, PMEs, prêts aux petites entreprises |
| JEL: | G21 G23 G33 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:decfin:42&r=sbm |
| By: | Sezer, Ayse Hazal (Tilburg University, Center For Economic Research); Uras, Burak (Tilburg University, Center For Economic Research) |
| Keywords: | Firm Size; Productivity; Wages; Scalability; Industry Dynamics; Automation; Unions |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:81a58c37-dd82-442d-aab1-b27f70a22ba1&r=sbm |
| By: | Nicolae B. Gârleanu; Stavros Panageas |
| Abstract: | We propose a unified theory of asset price determination encompassing both “conventional” and “alternative” asset classes (private equity, real estate, etc.). The model features disruption of old by young firms and skewness in the distribution of innovative rents among the young innovators. The relative size of asset classes, the dynamics of rich investors’ wealth, and the returns of the various asset classes are jointly determined in equilibrium. Besides explaining the observed patterns of returns across asset classes, we analyze the theoretical properties of the most widely used performance-evaluation measure for alternative investments. We also provide connections between the growth of alternative investments, the dispersion of returns across investors, and the turnover inside the ranks of wealthy individuals. |
| JEL: | G11 G12 G24 O49 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32184&r=sbm |
| By: | Ekaterina Prytkova; Fabien Petit; Deyu Li; Sugat Chaturvedi; Tommaso Ciarli |
| Abstract: | This paper measures the exposure of industries and occupations to 40 digital technologies that emerged over the past decade and estimates their impact on European employment. Using a novel approach that leverages sentence transformers, we calculate exposure scores based on the semantic similarity between patents and ISCO-08/NACE Rev.2 classifications to construct an open–access database, ‘TechXposure’. By combining our data with a shift–share approach, we instrument the regional exposure to emerging digital technologies to estimate their employment impact across European regions. We find an overall positive effect of emerging digital technologies on employment, with a one-standard-deviation increase in regional exposure leading to a 1.069 percentage point increase in the employment-to-population ratio. However, upon examining the individual effects of these technologies, we find that smart agriculture, the internet of things, industrial and mobile robots, digital advertising, mobile payment, electronic messaging, cloud storage, social network technologies, and machine learning negatively impact regional employment. |
| Keywords: | occupation exposure, industry exposure, text as data, natural language processing, sentence transformers, emerging digital technologies, automation, employment |
| JEL: | C81 O31 O33 O34 J24 O52 R23 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10955&r=sbm |