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on Small Business Management |
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Issue of 2024‒07‒08
sixteen papers chosen by |
| By: | Lars Van Cutsem; Marleen Willekens; Koenraad Debackere |
| Abstract: | In this study, we leverage the Discounted Cash Flow (DCF) valuation methodology to reexamine how innovation links to economic value estimates of firms, and how size moderates this relationship. As DCF valuation can be applied to a complete spectrum of firm sizes, ranging from small privately-held to large publicly-listed firms, our study provides more exhaustive evidence on the link between innovation and economic firm value across for all types of firms. This contrasts prior studies that typically draw inferences based on market valuations of publicly listed firms. We show that innovation is positively and statistically significantly related to the economic value in both large and small firms, and that firm size negatively moderates this link. Notably, innovation is more substantially linked to the economic value estimates of small firms than larger ones. These findings are robust to various controls, alternative operationalisations, including survey-reported innovation in the Community Innovation Survey (CIS), and a battery of robustness tests for the DCF valuation approach. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ete:msiper:742970&r= |
| By: | Samuel Muehlemann; Gerard Pfann; Harald Pfeifer |
| Abstract: | For centuries, the flexibility to hire and train apprentices has been an important source of successful implementation of innovations in production technologies. This paper shows that the input flexibility of apprenticeships in German firms is associated with product innovation. Even though R&D firms face higher costs to set up training facilities and are therefore less likely to start up apprenticeship training than non-R&D firms, conditional on having invested set up costs, R&D firms train more than non-R&D firms. R&D firms that train apprentices are more responsive to cyclical fluctuations. Against the trend of a 0.5 percentage points annual decline of new products introduced in the market, firms that train and expand their training activities through time are primarily responsible for an increase in product innovation. R&D firms also renew products 2.7 times more than non-R&D firms. All this emphasizes the prime role of firms that train apprentices in reinvigorating the economy. |
| Keywords: | Apprenticeship market, business climate, R&D, apprenticeship demand |
| JEL: | J23 J24 M53 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iso:educat:0223&r= |
| By: | Nivala, Annika |
| Keywords: | Business subsidies, Wage subsidies, Firm behavior, Labor demand, Entrepreneurship, Small Business, Business taxation and regulation, H25, H32, J23, J38, M51, fi=Elinkeinopolitiikka|sv=Näringspolitik|en=Industrial and economic policy|, fi=Työmarkkinat|sv=Arbetsmarknad|en=Labour markets|, |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fer:wpaper:166&r= |
| By: | MORALES Diana |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies articulated in the same report. The case study research comprises overall 14 case study reports covering 16 different territories from across the EU and beyond, casing various institutional contexts, a variety of biogeographical regions within different climate risks, different ranges of population sizes, and representing a diversity of approaches to CCA and transformative innovation . The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach where the features are understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation feature. This report provides the findings for the region of Norte, Portugal, as at November 2023, and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137321&r= |
| By: | Hanane Jenane (UIT - Université Ibn Tofaïl); Fatima Zahra Achour (UIT - Université Ibn Tofaïl) |
| Abstract: | In recent decades, we have witnessed a proliferation of entrepreneurship education programs. In this regard, the university plays a crucial role in developing entrepreneurial skills, creativity, and innovation, thus stimulating students' entrepreneurial spirit. The objective of this article is to study the influence of entrepreneurship education on the entrepreneurial intention of students at Moulay Ismail University in Meknes. We also take into account the influence of psychological, contextual, and sociocultural factors for understanding their entrepreneurial intention comprehensively. The study of this issue draws on Shapero and Sokol's (1982) social dimensions of entrepreneurship model and Ajzen's (1991) theory of planned behavior. The chosen method involves testing a model of intention inspired by Tounès (2006). Accordingly, we analyze entrepreneurial intention, considering three sets of factors: attitudes toward the behavior, subjective norms, and perceived behavioral control. The results indicate that only attitudes toward students' behavior and perceived behavioral control are significant in explaining entrepreneurial intention. |
| Abstract: | Au cours de ces dernières décennies, nous assistons à la démultiplication des formations en entrepreneuriat. En ce sens, l'université joue un rôle déterminant dans le développement des compétences entrepreneuriales, de la créativité et de l'innovation, stimulant ainsi l'esprit d'entreprendre des étudiants. À cet effet, l'objectif de cet article est d'étudier l'influence de la formation en entrepreneuriat sur l'intention entrepreneuriale des étudiants de l'université Moulay Ismail de Meknès. Nous prenons également en compte l'influence des facteurs psychologiques, contextuels et socioculturels pour la compréhension de leur intention entrepreneuriale dans sa globalité. L'étude de cette problématique fait appel au modèle des dimensions sociales de l'entrepreneuriat de Shaperoet Sokol (1982) ainsi qu'à la théorie du comportement planifié d'Ajzen (1991). La méthode retenue consiste au test d'un modèle d'intention inspiré de celui de Tounès (2006). Ainsi, nous analysons l'intention entrepreneuriale en prenant en compte trois ensembles de facteurs : les attitudes associées au comportement, les normes subjectives et les perceptions du contrôle comportemental. Les résultats indiquent que seules les attitudes associées au comportement des étudiants et les perceptions du contrôle comportemental sont déterminantes pour l'explication de l'intention entrepreneuriale. |
| Keywords: | Entrepreneurial intention, Attitude toward the behavior, Subjective norms, Perceveid Behavioral Control. |
| Date: | 2024–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04575086&r= |
| By: | MURZYN Dorota |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies for Mazovia region and the municipality of Stare Babice, in Poland, as at October 2023, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies articulated in the same report. The case study research comprises overall 14 case study reports covering 16 different territories from across the EU and beyond, casing various institutional contexts, a variety of biogeographical regions within different climate risks, different ranges of population sizes, and representing a diversity of approaches to CCA and transformative innovation. The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach where the features are understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation feature. This report is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137323&r= |
| By: | MURZYN Dorota |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies articulated in the same report. The case study research comprises overall 14 case study reports covering 16 different territories from across the EU and beyond, casing various institutional contexts, a variety of biogeographical regions within different climate risks, different ranges of population sizes, and representing a diversity of approaches to CCA and transformative innovation1 . The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach where the features are understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation feature. This report provides the findings for the region of Emilia Romagna, Italy, as at November 2023, and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137319&r= |
| By: | HARDING Richard; NAUWELAERS Claire |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies articulated in the same report. The case study research comprises overall 14 reports covering 16 different territories from across the EU and beyond, casing various institutional contexts, a variety of biogeographical regions within different climate risks, different ranges of population sizes, and representing a diversity of approaches to CCA and transformative innovation. The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach where the features are understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation feature. In addition to summarizing the main findings under each of the seven features, the conclusion also suggests possible ways forward which could help the region move towards more of a Transformative Innovation approach to CCA. This Report provides the findings for Provence-Alpes-Côte d’Azur region in France, as at January 2024 and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137314&r= |
| By: | Merdinger-Rumpler Caroline (HuManis Research Center, Université de Strasbourg); Paulus Odile (LaRGE Research Center, Université de Strasbourg); Bourachnikova Olga (Strasbourg Team Academy) |
| Abstract: | Investigating the nature of relations entrepreneurs have with their network stakeholders, this empirical research is based upon a specific context of student-entrepreneurs engaged in a three-years entrepreneurial team-action learning programme. The social life theory of Ingold (2017) allowed us to enlighten the nature of those relations through characteristics like the various intensities ranging from weak to strong, the type of perception student-entrepreneurs have of the stakeholder (from resource, person to support or key player), their openness to uncertainty and the transformative potential at both the inner person or the entrepreneurial project levels. Ultimately, we propose a tetratype model of relations that opens a new perspective in entrepreneurial network. |
| Keywords: | Entrepreneurship, Network, Ingold’s social life theory, Relationship model. |
| JEL: | M13 A30 I26 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:lar:wpaper:2024-05&r= |
| By: | RADOVANOVIC Nikola (European Commission - JRC); FABBRI Emanuele (European Commission - JRC); MATUSIAK Monika (European Commission - JRC); CONTE Andrea (European Commission - JRC); SALOTTI Simone (European Commission - JRC); DOSSO Mafini; HOLLANDERS Hugo; MERKELBACH Iris; TOLIAS Yannis; DURAN SILVA Nicolau; FUSTER MARTÍ Enric; MASSUCCI Francesco A.; PLAZAS Adrià |
| Abstract: | All Western Balkan economies launched their first respective Smart Specialisation strategy development processes by 2018, wishing to enhance their innovation policy frameworks with the evidence-based and participatory approach for revealing priority areas for policy intervention. Within these efforts, the economies had a complex task to thoroughly analyse their promising domains through economic, innovation and scientific mapping exercises. This report gives an overview of the regional competitiveness based on providing evidence on specialisation as well as emerging areas, highlighting their potential in detail. Although common patterns of economic specialisation are relatively rare, Western Balkan economies express a certain potential for science&technology collaborations. Smart Specialisation processes can enhance regional collaborations and contribute to bridging gaps between Science and Industry. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136606&r= |
| By: | Wadho, Waqar; Chaudhry, Azam |
| Abstract: | New processes significantly affect firms and workers; however, due to a lack of quantitative indicators, our understanding of the measures, determinants, and impacts of new processes remains limited. Drawing on unique data from Pakistan, we analyzed five different measures of process innovation output: cost reductions, defect rate reductions, reductions in production cycle time, increases in production capacity, and improvement in product quality. We find that the breadth and depth of innovative capabilities, level of competition, and availability of market sources of knowledge are important inducers of process innovation and that smaller firms are more likely to introduce new processes and are better able to transform them into higher output. All five process innovation outputs are associated with higher labor productivity and higher sales. We do not find that adopting new processes led to labor displacement; however, there is suggestive evidence that new processes led to the increased employment of skilled workers. |
| Keywords: | Technology, Innovation, Process innovation, Cost-reduction, Labor productivity, Developing countries, Textiles & Apparel, Pakistan |
| JEL: | O31 O32 O33 J23 J24 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1443&r= |
| By: | Ioramashvili, Carolin |
| Abstract: | I estimate employment multiplier effects by skill group from graduate employment and innovation at the NUTS1 and 2 level in France, Germany and the UK. Using local projections, I estimate the effects over 5-year horizons. Both graduate employment and patenting have temporary, positive impacts on non-graduate and mid-skilled employment. There is considerable heterogeneity in terms of the direction and magnitude of the effects across the three countries. The paper shows that innovation can be a source of regional employment growth, even for those without a graduate degree. |
| Keywords: | skills; regions; patents; invention; employment |
| JEL: | J21 J24 O18 O33 O40 R11 |
| Date: | 2024–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:123630&r= |
| By: | Vega-Redondo, Fernando; Pin, Paolo; Ubfal, Diego; Benedetti, Priscilla; Domínguez, Magdalena; Rubera, Gaia; Hovy, Dirk; Fornaciari, Tommaso |
| Abstract: | Can peer interaction foster entrepreneurship in large-scale environments? This paper addresses the question empirically and theoretically. Empirically, we tested the effects of peer interaction on the number and quality of business plans submitted in a Pan-African RCT including 5, 000 entrepreneurs. Thetreatment provided the possibility of interaction in different interaction settings (face-to-face or virtual, peers being of the same or diverse nationalities). We find that, while estimated network effects are almost always strong, the treatment effect is not so and displays a non-monotone trade-off between diversity and interaction "bandwidth." We develop a model that sheds light on this behavior by differentiating between constructive and disruptive interaction. It is also qualitatively supported by our experimental evidence |
| Keywords: | Social Networks; Peer Effects; Entrepreneurship; Innovation; Semantic analysis |
| Date: | 2024–06–06 |
| URL: | https://d.repec.org/n?u=RePEc:cte:werepe:43954&r= |
| By: | DiMaria, charles-henri |
| Abstract: | Innovation outcomes are typically linked to measurable resources such as R&D expenses and the number of researchers. However, we show that innovation outcomes are also significantly influenced by the National Innovation System, an aspect often overlooked in the existing literature. The National Innovation System encompasses challenging-to-measure resources such as the amount of staff training, the extent of university-industry or cross-industry collaboration, and the level of intellectual property rights. We demonstrate, using a Data Envelopment Analysis model, that cross-country differences in National Innovation Systems account for a significant share of relative inefficiencies in producing innovation from typical innovation inputs. This finding suggests that countries can support long-term economic growth by simply fostering and advancing a National Innovation System. |
| Keywords: | Data Envelopment Analysis, National Innovation System, country efficiency heterogeneity |
| JEL: | E22 O32 O47 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120800&r= |
| By: | Likun Cao; Ziwen Chen; James Evans |
| Abstract: | Modularity is critical for the emergence and evolution of complex social, natural, and technological systems robust to exploratory failure. We consider this in the context of emerging business organizations, which can be understood as complex systems. We build a theory of organizational emergence as higher-order, modular recombination wherein successful start-ups assemble novel combinations of successful modular components, rather than engage in the lower-order combination of disparate, singular components. Lower-order combinations are critical for long-term socio-economic transformation, but manifest diffuse benefits requiring support as public goods. Higher-order combinations facilitate rapid experimentation and attract private funding. We evaluate this with U.S. venture-funded start-ups over 45 years using company descriptions. We build a dynamic semantic space with word embedding models constructed from evolving business discourse, which allow us to measure the modularity of and distance between new venture components. Using event history models, we demonstrate how ventures more likely achieve successful IPOs and high-priced acquisitions when they combine diverse modules of clustered components. We demonstrate how higher-order combination enables venture success by accelerating firm development and diversifying investment, and we reflect on its implications for social innovation. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.15042&r= |
| By: | Gilbert Cette; Jimmy Lopez; Jacques Mairesse; Giuseppe Nicoletti |
| Abstract: | Business environments dominated by information flows and autonomous tasks, typical of knowledge-intensive industries, are likely to require enough social capital to be viable and productive. In this paper, we use new EUKLEMS-INTANProd industry-level data (Bontadini et al., 2023a) covering a panel of 19 countries and 20 industries over the 1995-2018 period to investigate the influence of a key element of social capital – trust – on labour productivity in intangible-intensive industries, controlling for hiring and firing regulations that can constrain the ability of managers to implement best practices productively. We find that in such industries, productivity gains from high levels of trust are stronger than elsewhere, while too strict hiring and firing regulations are more damaging for productivity. Using a more limited sample for which data on management quality are available, we show that the positive impact of high trust on productivity in intangible-intensive industries is channeled by the ability to benefit from good management, a key element of organizational capital. Productivity gains from relatively high levels of trust in knowledge-rich environments are estimated to be sizeable and our estimates survive a number of robustness checks. |
| JEL: | J24 L25 O50 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32513&r= |