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on Small Business Management |
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Issue of 2024‒04‒15
eleven papers chosen by |
| By: | An, So Hyun (Korea Institute for Industrial Economics and Trade) |
| Abstract: | The COVID-19 pandemic accelerated the digital transformation and affected entrepreneurial environment. Innovation is becoming more important than ever amid the digital transformation of society, and the role of start-ups in innovation has become especially vital, especially as a means of recovering from the economic shock of the COVID pandemic. The digital transformation and the importance of start-ups in economic development and recovery raise questions concerning the direction of entrepreneurship policies in the digital era. This paper explores these questions, probing the relevant academic literature in search of answers. I focus on entrepreneurship policies from an ecosystem perspective and these policies’ importance in the digital era. First, I illustrate the concept of the entrepreneurial ecosystem by summarizing main components as described in the literature. While the body of scholarship on regional economics and entrepreneurship has sought to provide a definition of the concept, the theoretical framework remains a matter of debate. Next, focusing on the role of digital technology as a both a context and enabler of the entrepreneurial ecosystem, I discuss the changes digital transformation has wrought and the growing importance of adopting an ecosystem perspective in entrepreneurial policies in the digital era. Finally, I suggest potential directions for entrepreneurship policies in the digital era by linking them to the characteristics of entrepreneurial ecosystem. |
| Keywords: | entrepreneurship; digital platforms; digital transformation; digital companies; innovation; startups; venture firms; entrepreneurship policy; regional economics; regional innovation; digital technology; Korea; KIET |
| JEL: | L26 R10 R11 R58 |
| Date: | 2024–02–29 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieter:2024_004&r=sbm |
| By: | OROKU Masahiro |
| Abstract: | This study uses patents granted by the U.S. Patent and Trademark Office (applied before 2011) to analyze the relationship among the value of patents, account information of patent-holding firms, and citations of academic papers empirically. The results are summarized as follows: First, profitable firms tend to cite papers more frequently than other firms. Second, patents that cite academic papers have more forward citations than other patents do. Third, patents that cite academic papers are cited in a wider range of technical fields than those that do not. These results imply that incorporating academic knowledge increases patent value, expands utilization range, and increases firm profitability. This situation has implications for science and technology policy. Providing public support may be important if firms with low-profit firms cannot access academic knowledge because of the lack of human and material resources. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:24036&r=sbm |
| By: | Sara Lamboglia (Bank of Italy); Noemi Oggero (University of Turin and CERP); Mariacristina Rossi (COVIP and University of Turin); Massimiliano Stacchini (Bank of Italy) |
| Abstract: | In this study, we explore whether financial literacy plays a role in shaping the career aspirations of young people. Using data collected in 2023 by the Bank of Italy on a representative sample of individuals aged 18-34, we find that financial knowledge increases the intention to become an entrepreneur. Our results are confirmed by using instrumental variable estimations. We also show that financial knowledge helps to reduce indecisiveness regarding future professional choices, making young people more focused on their aspirations. |
| Keywords: | financial literacy, entrepreneurial intention |
| JEL: | G53 L26 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_838_24&r=sbm |
| By: | Krieger, Bastian; Pruefer, Malte; Strecke, Linus |
| Abstract: | Public procurement accounts for 15 to 20 percent of global GDP and is considered an effective innovation policy. However, the detrimental effects of non-innovative public procurement - public procurement tenders awarded solely based on their price - on firm innovations have been largely neglected, even though it represents the majority of all tenders. We contribute by i) developing a comprehensive theory on the effects of winning non-innovative public procurement tenders as a firm and ii) empirically testing our theory by combining representative German data with two-way fixed effect difference-in-differences estimations. In total, the estimations demonstrate winning non-innovative public procurement reduces firms' product and process innovations on the one hand, and increases firms' focus on their established products and services on the other hand. These results confirm our theory and empirically hold at the level of the individual firm and the German enterprise sector. |
| Keywords: | Public procurement, Firm innovation, Demand side |
| JEL: | O31 O32 O38 H57 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:287768&r=sbm |
| By: | Roessler, Max (University of Greifswald); Grillitsch, Markus (CIRCLE, Lund University); Miörner, Johan (CIRCLE, Lund University); Schiller, Daniel (University of Greifswald) |
| Abstract: | This paper aims to identify micro-level processes shaping the narratives about regional opportunity spaces. A process perspective is applied to investigate how place leaders engage in shaping narratives to influence the perception of regional opportunity spaces. The empirical research is based on a comparative case study of four peripheral regions in Germany including ninety-two interviews with regional stakeholders complemented by two cross-regional focus groups. Our findings emphasize the central role of place leadership in influencing the perception of regional opportunity spaces, show two pathways of changing dominant narratives (outside-in and inside-out) and provide a multiple-phase framework for their analysis. |
| Keywords: | opportunity spaces; narratives; place leadership; agency; peripheral regions |
| JEL: | O33 P52 R11 R58 |
| Date: | 2024–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2024_005&r=sbm |
| By: | Karl Robert Jandoc (UP School of Economics); Benjamin Radoc, Jr. (Ateneo de Manila University); Ludigil Garces (ACERD); Mae Hyacinth Kiocho (ACERD); John Faust Turla (ACERD); Christopher P. Monterola (Asian Institute of Management) |
| Abstract: | The intensity of research and development (R&D) that is necessary to accelerate innovation leading to economic growth is nuanced by industry needs and the interplay of variables during pre-R&D, conduct of R&D, technology transfer and commercialization, and the readiness of end-users. The Philippines is behind comparator countries in terms of both public and private investments in R&D. In the public R&D sphere, there are myriad wicked problems that need to be solved to spur R&D investments: low budgets, complex procurement rules, missing markets that hamper technology transfer, lack of human resource complement, and lack of clear and coherent vision on how to harness innovation to improve productivity. We recommend focusing on the low-hanging fruits. There should be an articulated vision on what type of innovation to focus on, complemented by policies to reform or relax bottlenecks regarding budgetary and procurement processes. Government should promote an R&D culture that prioritizes efficient and responsible data sharing, provide clear rationale on the roles, scope, and limitations of existing and proposed research centers, and harness digitalization to streamline processes and to enhance synergies among the government, firms, individuals, and research institutions. |
| Keywords: | institutions, public spending, R&D, technology transfer |
| JEL: | H50 O32 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:agy:dpaper:202410&r=sbm |
| By: | Huanjia Ma (City-REDI Institute, The University of Birmingham); Raquel Ortega-Argilés (Manchester Institute of Innovation Research and TPI Institute, The University of Manchester); Matthew Lyons (City-REDI Institute, The University of Birmingham) |
| Abstract: | This paper examines the UK implications for regional and national growth associated with different geographical investment patterns of publicly-funded R&D, in the light of the recommendations of the 2022 Levelling Up White Paper, aimed at balancing the national economy. The White Paper outlines twelve main "missions" focused on science, technology, and education to achieve this goal. One of these missions aims to increase domestic public Research and Development (R&D) by at least 40% outside the Greater South East (GSE) by 2030. We develop three scenarios based on different assumptions about extra R&D allocation. We use data from UKRI and ONS to determine the current distribution of R&D investment in the UK, and then using the multi-regional Socio-Economic Impact Model for the UK we evaluate our three proposed R&D spending scenarios. Our findings suggest that the regional impact varies significantly across the different proposed scenarios. The scenario that allocates more GERD to areas with previously low funding levels yields the largest effect. On average, output, employment and GVA in regions outside GSE increase by 0.33%, 0.37% and 0.34%, respectively, showing a potentially positive effect on the levelling up of R&D in the country. Our analysis of both internal and external multipliers highlights the importance of investing in regional redistribution. We demonstrate that the GSE is more self-sufficient as it has much higher internal multipliers than the rest of the UK. However, we identified a potential obstacle: the capacity to absorb human capital, which could reduce the expected positive results of a more spatially balanced R&D expenditure across the UK. |
| Keywords: | Multi-region input-output, R&D, Levelling-up, UK |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdj:smioir:2024-03&r=sbm |
| By: | Alberto Galasso; Hong Luo |
| Abstract: | We examine the relationship between product liability litigation and innovation by systematically combining data on product liability lawsuits with data on new product introductions in a panel dataset of leading medical device firms. We first document a decline in the propensity to introduce new products for both defendant firms and other firms operating in litigated device categories. This decline, however, does not spill over to other device categories, and we also do not find any slowing down in firms' patenting activities. We then show that changes in two features of the regulatory environment---(1) the availability of public information regarding adverse events and (2) federal law taking precedence over state law---substantially affect the likelihood of litigation. These changes also provide quasi-exogenous variations in litigation that confirm our baseline findings. Finally, we show that litigation appears to induce firms to develop safer devices. Overall, our findings suggest that product liability litigation affects the rate and direction of technological progress, and that safety regulation and liability regimes interact with one another in significant ways. |
| JEL: | K13 K41 L51 O32 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32215&r=sbm |
| By: | Kris Boudt; Yanick Inghels; André Spithoven (-) |
| Abstract: | We introduce a large-scale research project analysis framework to trace and track the prevalence of Sustainable Development Goals (SDGs) within research funded by the European Union since 1984 with a specific focus on Sustainable Development Goal 8. This goal envisages to promote sustained economic growth, full and productive employment, and decent work for all. Using the CORDIS database, we identify to which extent SDG 8 has been represented in the titles and abstracts of projects funded by the EU's Framework Programmes. Our findings reveal that SDG 8 related research projects are dominated by four targets: economic growth, productivity, entrepreneurship and decent work, and full and decent employment. We further find that the adoption of the SDGs by the United Nations in 2015 coincides with an increase of over 45% in SDG 8 related research projects. We also show that EU economic performance in the two years preceding the framework programme is a leading indicator of the prevalence of SDG 8 in the research projects funded by that programme. In terms of project characteristics, we conclude that, on average, an SDG 8 project tends to secure a more substantial budget, engage larger research consortia, and exhibit higher interdisciplinarity than other projects. Finally, we show that SDG 8 ranks among the most (diversely) interconnected SDGs, linking especially with SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure). |
| Keywords: | Sustainable Development Goals, SDG 8, natural language processing, European Framework Programmes, research funding |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:24/1084&r=sbm |
| By: | Ashenafi Biru (RMIT University - Royal Melbourne Institute of Technology University); Pia Arenius (EM - EMLyon Business School); Garry Bruton (TCU - Texas Christian University, JLU - Jilin University); David Gilbert (Monash university) |
| Abstract: | This research investigates how entrepreneurs in an early-stage market economy decide their level of compliance with formal rules and finds the manner in which they interact with government officials to operate on a continuum of formality. Focusing on the nonmarket strategy approaches entrepreneurs employ to establish relationships with government officials, we build a model that shows how entrepreneurs adopt strategies aligned with their firm's level of formality, spanning low to high formality practices. We draw on qualitative interview data from entrepreneurs who exhibit varying levels of compliance with state-provided rules and guidelines. We inductively theorize that deciding the firms' level of formality involves strategic interaction approaches with government officials responsible for rule enforcement. Our findings highlight that the interaction strategies entrepreneurs use hinge on the political capital they possess, eliciting the desired response from government officials, and dissuading the officials from enforcing formal rules or imposing sanctions for informality. We offer theoretical and policy implications for future work on the nuances of firm formality and the interaction between entrepreneurs and government officials. |
| Keywords: | business-government interaction, early-stage market economy, firm formalization, nonmarket strategy, regulatory enforcement |
| Date: | 2024–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04493248&r=sbm |
| By: | ASUYAMA Yoko; OWAN Hideo |
| Abstract: | This study examines the middle-managers’ managerial skills that affect the performance of the subordinates and managers themselves, using personnel records from a Japanese management consulting company, which include upward (downward) feedback given by subordinates (superiors). We identify two different sets of skills expected of managers: people management skills (PMSs), which are mainly observed by subordinates and are primarily required of first-line managers; and senior leadership skills (SLSs), which are mainly observed by superiors and are more important for senior managers. We find that (1) only PMSs observed by subordinates positively predict subordinates’ performance evaluations; (2) PMSs observed by superiors are not related to the outcomes of subordinates or managers; (3) managers’ PMSs and SLSs, including coordination and information gathering skills, predict the retention of subordinates; (4) managers’ PMSs predict their own performance evaluations but do not predict their promotions; and (5) managers with higher SLSs tend to be promoted. The results are interpreted using a theoretical model in which firms make a tradeoff between promoting managers with the right qualities and giving managers incentives to work hard in their current positions. We provide additional evidence supporting the key implications from the model. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:24037&r=sbm |