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on Small Business Management |
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Issue of 2024‒08‒12
28 papers chosen by |
| By: | BARRIOS Salvador (European Commission - JRC); DELIS Fotis (European Commission - JRC); LANDABASO ALVAREZ Mikel (European Commission - JRC) |
| Abstract: | We provide evidence on the differences in the effective tax rate by firm size, highlighting that effective tax rates tend to follow a bump-shaped curve, increasing from micro to small firms and then decreasing for medium to large firms. Our analysis, based on microdata from several EU countries, shows that both corporate and labour taxation follow this pattern. Econometric analysis reveals that a 1% increase in effective corporate taxation results in a 2.6% decrease in firm turnover growth, with new firms and micro firms being particularly affected. The negative impact of corporate taxation on firm growth is much larger for new firms compared to older firms, and this is especially pronounced in Spain, where a 1% tax hike leads to a turnover growth decrease of 8%. Examining the 2015 Spanish corporate tax reduction for new firms, we find that the reform's overall positive impact was insignificant for micro firms, suggesting the need for more targeted policies considering firm size, age, and ownership. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:taxref:202407&r= |
| By: | Maria del Sorbo (European Innovation Council, Bruxelles, Belgium); Carina Faber (European Innovation Council, Bruxelles, Belgium); Marco Grazzi (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy); Francesco Matteucci (European Innovation Council, Bruxelles, Belgium); Miriam Ruß (Wuppertal Institut für Klima, Umwelt, Energie gGmbH, Wuppertal, Germany) |
| Abstract: | A novel analysis of the European Innovation Council (EIC) Accelerator pilot is presented, marking the first extensive examination of its selection process and the impact of its funding on deep tech ventures, in comparison to its predecessor, the SME Instrument. Utilizing applicant data from both programs, the study assesses the EIC’s effectiveness in targeting firms that align with its objectives of driving breakthrough innovation. The research reveals that the EIC Accelerator pilot attracts younger and smaller firms, in comparison to its predecessor. A significantly higher proportion of applicants are high tech and medium high-tech, indicating a strategic shift towards supporting cutting-edge technologies. Despite this shift, the analysis of funding determinants demonstrates a consistent pattern across both programs, emphasizing the influence of firm size, age, and patent portfolio. Further, a regression discontinuity design analysis is used to estimate the impact of funding during the EIC accelerator pilot on firm-level outcomes, such as patenting, revenue, or employment growth. However, the very recent launch of the program shrinks both the observations and the ex-post window, and due to large standard errors the point estimates are not significant at conventional levels. |
| Keywords: | Innovation Policy, Industrial policy, deep-tech, start-up, regression discontinuity, patent, firm growth |
| JEL: | O3 O31 O32 O38 L25 L26 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ctc:serie5:dipe0037&r= |
| By: | Robert Stehrer; Bernhard Dachs; Maria Yoveska |
| Abstract: | In view of the importance of the export economy for Austria this study examines the role and characteristics of Austrian exporting firms compared with non-exporting firms. Specifically, it assesses how the share of exporting firms has developed in recent years, whether exports have become more important for firms over time and to what extent exporters have an advantage over other firms (export premium). The results show that about two third of the Austrian manufacturing firms are engaged in exporting activities and indicate that – in line with existing literature - exporting firms are larger, more productive, generate higher surpluses, invest more, and spend more on environmental protection than non-exporters. Further, the results highlight that only a small number of firms account for a large share of Austrian manufacturing exports. Finally, the results point towards a mutual positive relationship between export behaviour, productivity, and R&D expenditures. |
| Keywords: | Export premium, Firm-level analysis, productivity and exporting |
| JEL: | F14 D22 |
| Date: | 2022–07 |
| URL: | https://d.repec.org/n?u=RePEc:wsr:ecbook:y:2022:m:07:i:viii-002&r= |
| By: | Pehr-Johan Norbäck; Lars Persson; Joacim Tåg |
| Abstract: | The creation and scaling of startups are inherently linked to risk-taking, with various types of owners handling these risks differently. This paper investigates the influence of an active venture capital (VC) market on startups’ decisions regarding research and scaling. It outlines conditions under which VC-backed startups prefer riskier, yet potentially more rewarding strategies compared to independent startups. VC firms, by means of temporary ownership and compensation structures, introduce ”exit costs” that make high-risk strategies more attractive to VC-backed startups. Moreover, an active VC market prompts startups to undertake higher initial risks, as VC firms provide support for pivoting after setbacks. Additionally, the presence of VC intensifies research risk among established firms, as their research initiatives are strategic complements to the risk choices of startups. |
| Keywords: | entrepreneurship, pivoting, research, scaling, venture capital |
| JEL: | G24 L26 M13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11178&r= |
| By: | Aleksandra Parteka (Gdansk University of Technology, Gdansk, Poland); Piotr PÅ‚atkowski (Gdansk University of Technology, Gdansk, Poland); Sabina Szymczak (Gdansk University of Technology, Gdansk, Poland); Joanna Wolszczak-Derlacz (Gdansk University of Technology, Gdansk, Poland) |
| Abstract: | This paper describes the construction of a microlevel database on knowledge creation by higher education institutions (KC-HEI), accompanying the Global Knowledge Input-Output database (KIO, Davies et al., 2023). The database was created as part of Project Rethink GCS. KC-HEI links PATSTAT information on the patenting activity of 866 universities (HEIs) in 31 European countries over four decades (1980-2019), using citation records and patent quality indicators from OECD/STI Micro-data. KC-HEI makes possible analysis of the Institutions' innovation performance across 128 internationally comparable technological sectors and, separately, with respect to Artificial Intelligence (AI). We also develop a unique crosswalk between PATSTAT and ETER that combines KC-HEI with other institution-level datasets (such as ETER and RISIS) and allows us to build a parallel dataset covering 785 patenting and 2101 non-patenting universities in Europe between 2011 and 2019. We illustrate the potential of the KC-HEI database, providing key stylised facts on the role of universities in knowledge creation, while documenting extreme core-periphery patterns of university patenting in Europe and detecting several key university-level factors that reinforce this disparity. |
| Keywords: | Patents, Innovation, Knowledge, Higher Education Institutions, University |
| JEL: | O31 O33 I23 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:gdk:wpaper:73&r= |
| By: | Emmanuel Dhyne (Economics and Research Department, National Bank of Belgium); Pablo Muylle (Ghent University) |
| Abstract: | While past decades were characterized by economic liberalization and deregulation, there re-mains an enduring presence of political influence over the private economy. Such influence can either benefit (e.g. government support addressed at survival and growth prospects) or harm (e.g. reduced efficiency and innovation) firms. This study investigates the impact of government ownership among suppliers on the behavior and performance of privately-held firms. We argue that this channel of government influence on the private economy plays a prominent role, in addition to that of political connections (i.e. the direct presence of politicians on the boards of firms), a more established channel of political influence. Leveraging Belgian firm-level trans-action data, the research reveals that purchasing inputs from state suppliers is associated with lower firm profitability and productivity, along with higher leverage and employment. Notably, the relationship between state suppliers and performance persists even when controlling for the direct presence of politicians on the boards of firms. These findings underscore the influence of government support on firms’ behavior and financial performance and highlight the importance of considering both state suppliers and political connections when assessing the comprehensive impact of government influence on private enterprises |
| Keywords: | Governmental Influence, SOE Suppliers, Political Connections, Economic Liberalization, Firm Performance. |
| JEL: | D22 D72 G38 H11 H32 L33 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202407-451&r= |
| By: | Naudé, Wim (RWTH Aachen University) |
| Abstract: | This paper identifies conceptual, methodological, and empirical flaws in the first African Entrepreneurial Ecosystem Index (AEEI) that was launched in 2024. These flaws limit the usefulness of the AEEI. Moreover, given that the both the notions of entrepreneurial ecosystems and composite indices are subject to subjectivity and are ad hoc, use of the AEEI can lead to simplistic policy conclusions; worse, a poorly constructed index can detract, mislead and be manipulated. It is concluded that if scholars are to embark on entrepreneurial ecosystem index building despite the concept lacking sound theoretical and empirical foundations, then it is best not to focus on the cross-country level, but to start at the sub-national level and follow best practice in composite index building. This will have the benefits of at least being more consistent with the ideas of entrepreneurship as being place dependent and that ecosystem measures should be concerned with what entrepreneurs want - and less on existing institutions. |
| Keywords: | entrepreneurship, Africa, entrepreneurial ecosystem, composite indices |
| JEL: | L26 L53 O55 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17075&r= |
| By: | İrem Güçeri; Xipei Hou; Jing Xing; Irem Guceri |
| Abstract: | We examine how investor-level tax incentives affect financing for start-ups using the introduction of a generous tax deduction for qualified angel and VC investment in China as a quasi-natural experiment. We find that the tax incentive increases funding for eligible start-ups, with stronger responses from larger and more experienced investors. The tax incentive leads to substitution between eligible and non-eligible investments. There is no evidence that the tax incentive lowers investment quality. We further show that the investor-level tax incentive encourages firm entry into affected industries, especially in cities more exposed to venture capital funds. |
| Keywords: | venture capital, angel investment, tax incentives, entrepreneurship |
| JEL: | G24 G32 H25 L26 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11180&r= |
| By: | Miklós Koren; Álmos Telegdy |
| Abstract: | Using a novel Hungarian dataset on firms and their Chief Executive Officers (CEOs), we estimate the impact of hiring expatriate CEOs. By examining foreign acquisitions where the new owner replaces the incumbent CEO with an expatriate or a local CEO, we address the selection into both acquisition and CEO hiring. Firms led by expatriate CEOs show 13 percent total factor productivity growth, 95 percent sales growth, and increase both exports and domestic sales. Hiring expatriate CEOs enhances firm performance in both international and domestic markets. Our findings suggest that expatriates have superior general management skills. |
| Keywords: | expatriate CEO, foreign acquisition, firm performance, Hungary |
| JEL: | F23 F61 L25 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11164&r= |
| By: | Elodie Carpentier; Jennifer Brant; Utsav Bahl; Aikaterini Kanellia |
| Abstract: | Innovation is a driver of competitive advantage and economic growth, with patent rights playing a critical supporting role. However, differential access to patent rights and relatively less participation in innovation can affect women and people from other historically underrepresented groups, thereby hindering progress and limiting the potential economic benefits generated by innovation. This paper reviews the global literature on these “diversity gaps†, identifies their key drivers, and documents international policies and initiatives that show promise in addressing them. Building upon Shapanka and Fechner (2018), it expands the geographic scope and reinforces the scientific basis of their analysis. The paper also provides recommendations for a wide range of stakeholders and offers insights for fostering more inclusive and equitable innovation ecosystems. |
| Keywords: | Innovation, Diversity Gaps, Intellectual Property |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:wip:wpaper:86&r= |
| By: | Halil Ýbrahim Aydin; Cagatay Bircan; Ralph De Haas |
| Abstract: | Blended finance programs combine public and private funding to ease credit constraints of specific firm segments. While rapidly gaining popularity, little evidence exists on their economic impact. To address this gap, we match credit registry data with firm level tax records to trace out the impacts of a blended finance program for female entrepreneurs in Türkiye. Using a synthetic difference-in-differences estimator, we show that participating banks durably increase lending to women-both in absolute terms and relative to male entrepreneurs. The average treatment effect on treated banks' share of lending to female entrepreneurs is 22 per cent. Banks expand credit to existing borrowers, poach clients from competitors, and crowd in first-time borrowers. Female clients of treated banks increase net borrowing and investment, especially those with higher capital productivity. Beneficiary firms grow their sales and profits, diversify suppliers, and exit less. There are no discernible impacts on aggregate firm populations at the district level, reflecting the program's relatively modest scale. Implications for program design are discussed. |
| Keywords: | Blended finance; Credit access; Female entrepreneurship; Misallocation |
| JEL: | D22 G21 G32 H81 J16 L26 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tcb:wpaper:2408&r= |
| By: | Lee, Seungshin (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Choi, Wonseok (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Moon, Jiyoung (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Na, Suyeob (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Oh, Jonghyuk (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 중국정부가 제조업 기반 강화 및 핵심 부품소재의 국산화율을 제고하기 위해 강소기업 육성전략을 추진하고 있다. 한중 경제관계가 구조적인 변화를 겪고 있는 과정에서 중국 강소기업의 성장에 따른 중국 산업의 경쟁력 변화에 대한 이해와 대응책 마련이 필요하다. 본 보고서는 중국 강소기업 육성전략의 배경, 지원 분야 및 정책, 주요 기업 사례 및 강소기업 경쟁력을 분석하고 정책적 시사점을 제안하였다. China’s policy of nurturing hidden champions is being promoted on the basis of a systematic development system, which has been established by consolidating the economic development policies scattered in each province by linking them to the national strategy. It nurtures hidden champions in the manufacturing industry to strengthen the foundation of the manufacturing industry and improve the localization rate of key basic parts and materials by 2025, which is the goal set by the “manufacturing powerhouse” strategy at the national level. After classifying small and medium-sized enterprises by growth stage, China is nurturing companies that can supplement the technological gap in the supply chain by focusing technology and capital. It is also expanding the establishment of a national-level manufacturing innovation center necessary for promoting national strategies. The main areas of establishment are high-tech areas such as optoelectronics, display, robotics, lightweight materials, semiconductors, and batteries. The national-level manufacturing innovation center will receive financial support from the government when it is established. In addition, it is operated in a structure in which everyone enjoys the intellectual property rights developed here with the participation of research institutes, universities, and private companies for strategic technology research. In particular, in the semiconductor industry, which has recently increased its strategic importance, three innovation centers are in operation, and core process technologies are being developed by concentrating resources under the leadership of leading companies. In addition, SMEs that participated in this are also building an open system so that they can use the infrastructure and databases of innovation centers. As of 2023, there are 12, 950 hidden champions in China, exceeding the 2025 target of 10, 000. In particular, the share of companies in the new materials, next-generation information technology, and advanced mechinery industries increased significantly from about 17% in 2019 to 25.7% in 2023. This seems to be due to the Chinese government’s expansion of support to sectors that are more exposed to U.S. sanctions. Financial support strategies for hidden champions are divided into initial government subsidies and tax incentives, and sustainable financial support using private capital. Various methods of financial support are of great importance in that they provide financial resources to SMEs that have a long management period and are difficult to obtain additional support to enhance the competitiveness of the company and prepare new growth engines(the rest omitted). |
| Keywords: | nurturing hidden champions; China; manufacturing powerhouse strategy |
| Date: | 2023–12–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieppa:2023_032&r= |
| By: | Esa A. Asyahid (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada); Elan Satriawan (The National Team for Acceleration of Poverty Reduction (TNP2K)) |
| Abstract: | The dualistic market model suggests that self-employment in developing countries should be seen as a survival strategy that is taken by those who are locked out of the formal labour market rather than as a manifestation of entrepreneurial spirit. This study aims to provide empirical evidences on the nature of self-employment in Indonesia, and whether it is more appropriately seen as an entrepreneurial activity or merely as a survival mechanism, by examining self-employed workers’ characteristics and the determinants of entry and exit into the self-employment sector. Utilising individual-level panel data from the Indonesian Family Life Survey, this study finds that the self-employment sector in Indonesia is indeed better characterised as a survival strategy as in the dualistic market model. Moreover, entry into the self-employment sector arises in times of economic crisis, implying that it acts as an employment option, namely as a last resort. Consequently, instead of focusing on growing the business of self-employed workers, policies should be directed toward the relaxation of formal labour market entry constraints‒providing more decent jobs and protecting the livelihood of existing self-employed workers. |
| Keywords: | Self-Employment, Indonesia, Dualistic Market Model |
| JEL: | E26 J46 O17 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:gme:wpaper:202403002&r= |
| By: | Ania Thiemann |
| Abstract: | Weak productivity in Egypt is rooted in deep-seated structural causes that impede market competition and prevent a more efficient resource allocation. This implies a number of challenges for economic policy to meet the objectives for long-term sustainable growth as set out in the National Structural Reform Programme, but the government is determined to tackle the issues, and is committed to increase the role of the private sector. Market mechanisms such as business entry and exit, and growth of the most efficient firms, appear to be weaker than in many similar emerging markets. Recent reforms have started to tackle heavy regulatory burdens and barriers that hinder market entry and encourage informality and should be pursued, while the judiciary system still requires improvement. Competition from abroad, and the attraction of foreign direct investment are hampered by trade barriers, implying that Egypt does not fully benefit from global value-chains and spillovers of technology and knowledge that would help lift productivity. The way state-owned companies are operating across a several sectors prevents private businesses from competing on a level playing field, although the government has recently started to take steps to level the playing field for all firms. Moreover, many businesses still face difficulties in accessing finance, as banks overwhelmingly prefer to lend to the government. Enhancing access to finance and improving digitalisation would contribute to a more competitive environment, lifting business sector growth. |
| Keywords: | access to finance, anti-corruption measures, Business climate, competition, corporate governance, digital diffusion, Egypt, foreign investment, informal economy, investment, judiciary efficiency, level playing field, network sectors, private sector development, privatisation, productivity, regulatory reform, resource allocation, SMEs, state-owned enterprises, tax incentives, trade barriers |
| JEL: | D24 E26 F13 F21 G21 G34 G38 H11 H25 K21 K23 K35 K42 L11 L14 L25 L26 L33 L40 L50 O19 O33 O53 |
| Date: | 2024–07–16 |
| URL: | https://d.repec.org/n?u=RePEc:oec:ecoaaa:1808-en&r= |
| By: | Park, Timothy A.; Holmes, Marionette |
| Keywords: | Community/Rural/Urban Development, Productivity Analysis, Agribusiness |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343903&r= |
| By: | Chen, Kevin; Hu, Shuang; Ji, Chen |
| Keywords: | Agribusiness, Environmental Economics And Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:344015&r= |
| By: | OECD |
| Abstract: | This background note reviews the relationship between competition and innovation in both directions. This is, how competition can help boosting innovation and how innovation can shape competition. It focuses on the theoretical perspective to try to understand whether competition is indeed a driver of innovation and how it interacts with other drivers. It was prepared as a background note for discussions on “The Relationship between Competition and Innovation” taking place at the June 2023 session of the OECD Competition Committee. |
| Date: | 2023–05–05 |
| URL: | https://d.repec.org/n?u=RePEc:oec:dafaac:294-en&r= |
| By: | Jaedo Choi; Andrei A. Levchenko; Dimitrije Ruzic; Younghun Shim |
| Abstract: | We quantify the contribution of the largest firms to South Korea's economic performance over the period 1972-2011. Using firm-level historical data, we document a novel fact: firm concentration rose substantially during the growth miracle period. To understand whether rising concentration contributed positively or negatively to South Korean real income, we build a quantitative heterogeneous firm small open economy model. Our framework accommodates a variety of potential causes and consequences of changing firm concentration: productivity, distortions, selection into exporting, scale economies, and oligopolistic and oligopsonistic market power in domestic goods and labor markets. The model is implemented directly on the firm-level data and inverted to recover the drivers of concentration. We find that most of the differential performance of the top firms is attributable to higher productivity growth rather than differential distortions. Exceptional performance of the top 3 firms within each sector relative to the average firms contributed 15% to the 2011 real GDP and 4% to the net present value of welfare over the period 1972-2011. Thus, the largest Korean firms were superstars rather than supervillains. |
| JEL: | F12 F16 L11 N15 O40 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32648&r= |
| By: | Christiansen, Anna Gade (Department of Economics, Copenhagen Business School); Llorca, Manuel (Department of Economics, Copenhagen Business School); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Zhao, Tian (School of Economics and Management, Beihang University, China) |
| Abstract: | This paper investigates how energy networks in the European Union can be encouraged to increase innovation to reach the decarbonisation goals. We design and analyse a tripar-tite evolutionary game model with the European Commission, national energy regulators, and energy network companies being the groups of players in the game. We find that the only evolutionary stable state of the game is where the three groups of players choose cooperation strategies. For the Commission and the national regulatory authorities, induc-ing innovation involves adopting new policy and regulatory mechanisms, respectively. For the energy networks, it involves investing in innovation with decarbonisation goals. We assume that the initial probability of the Commission choosing its cooperation strategy is relatively high and the initial probabilities of the regulators and the energy networks choosing cooperation strategies is relatively low. Numerical simulations suggest that the convergence rate to the evolutionary stable state can be increased if the Commission in-creases the probability of energy networks receiving external funding and penalty im-posed on regulators to adapt their incentive mechanisms to induce innovation. The Com-mission clearly plays a key role in reaching the stable state. |
| Keywords: | Energy networks; innovation; regulation; green transition; tripartite evolutionary game |
| JEL: | C70 L50 L90 O30 Q40 Q50 |
| Date: | 2024–06–24 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_011&r= |
| By: | Luca Barbaglia (European Commission, Joint Research Centre (JRC), Ispra (VA), Italy); Serena Fatica (European Commission, Joint Research Centre (JRC), Ispra (VA), Italy, Money and Finance Research Group); Caterina Rho (European Commission, Joint Research Centre (JRC), Ispra (VA), Italy) |
| Abstract: | We document that banks charge higher interest rates on loans granted to European small and medium-sized firms located in areas at high risk of flooding. The risk premium, at 6.4 basis points on average, rises with loan duration, and in the case of smaller borrowers and local specialised banks. By contrast, at-risk firms that rely heavily on intangible and movable assets do not face a higher cost of credit, reflecting lower vulnerability to physical risk. Realised flood risk increases SMEs’ financial vulnerability, as firms in flooded counties are more likely to default on their loans than non-disaster borrowers. |
| Keywords: | climate change, loan default, loan pricing, natural disasters |
| JEL: | G24 F21 D81 E22 E44 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:anc:wmofir:186&r= |
| By: | Sefa Awaworyi Churchill (School of Economics, Finance and Marketing, RMIT University.); Simon Chang (University of Western Australia Business School, University of Western Australia.); Russell Smyth (Department of Economics, Monash University.); Trong-Anh Trinh (Centre for Health Economics, Monash University.) |
| Abstract: | This paper extends prior theory linking present-day sex ratios to present-day propensity for entrepreneurship among men backward in time to explore the long-run gender origins of entrepreneurship. We argue that present-day propensity for entrepreneurship among men will be higher in neighbourhoods which had historically high sex ratios. We propose that high sex ratios generate attitudes and behaviours that imprint into cultural norms about gender roles and that vertical transmission within families create hysteresis in the evolution of these gender norms. To empirically test the theory, we employ the transport of convicts to the British colonies of New South Wales and Van Diemen’s Land in the eighteenth and nineteenth centuries as a natural experiment to examine the long-run effect of gender norms on entrepreneurship in present-day Australia. We use a representative longitudinal dataset for the Australian population that provides information on the neighbourhood in which the participant lives, which we merge with data on the sex ratio in historical counties from the mid-nineteenth century. We find that men who live in neighbourhoods which had high historical sex ratios have a higher propensity for entrepreneurship. We present evidence consistent with the vertical transmission of gender norms within families being the likely mechanism. Arguments for policies to promote female entrepreneurship are typically couched in terms of gender norms representing a barrier to more women starting their own business. We present evidence consistent with gender norms contributing to gender differences in rates of entrepreneurship by being a spur for higher male entrepreneurship rather than a barrier to female entrepreneurship. |
| Keywords: | gender norms, sex ratios, entrepreneurship, Australia. |
| JEL: | I31 J21 J22 N37 O10 Z13 Z18 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:mos:moswps:2024-11&r= |
| By: | Pinelopi K. Goldberg; Réka Juhász; Nathan J. Lane; Giulia Lo Forte; Jeff Thurk |
| Abstract: | The resurgence of subsidies and industrial policies has raised concerns about their potential inefficiency and alignment with multilateral principles. Critics warn that such policies may divert resources to less efficient firms and provoke retaliatory measures from other countries, leading to a wasteful "subsidy race." However, subsidies for sectors with inherent cross-border externalities can have positive global effects. This paper examines these issues within the semiconductor industry: a key driver of economic growth and innovation with potentially significant learning-by-doing and strategic importance due to its dual-use applications. Our study aims to: (1) document and quantify recent industrial policies in the global semiconductor sector, (2) explore the rationale behind these policies, and (3) evaluate their economic impacts, particularly their cross-border effects, and compatibility with multilateral principles. We employ historical analysis, natural language processing, and a model-based approach to measure government support and its impacts. Our findings indicate that government support has been vital for the industry's growth, with subsidies being the primary form of support. They also highlight the importance of cross-border technology transfers through FDI, business and research collaborations, and technology licensing. China, despite significant subsidies, does not stand out as an outlier compared to other countries, given its market size. Preliminary model estimates indicate that while learning-by-doing exists, it is smaller than commonly believed, with significant international spillovers. These spillovers likely reflect cross-country technology transfers and the role of fabless clients in disseminating knowledge globally through their interactions with foundries. Such cross-border spillovers are not merely accidental but result from deliberate actions by market participants that cannot be taken for granted. Firms may choose to share knowledge across borders or restrict access to frontier technology, thereby excluding certain countries. Future research will use model estimates to simulate the quantitative implications of subsidies and to explore the dynamics of a ``subsidy race'' in the semiconductor industry. |
| JEL: | F13 F61 L63 N60 O38 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32651&r= |
| By: | CALDAROLA Bernardo; MAZZILLI Dario; NAPOLITANO Lorenzo (European Commission - JRC); PATELLI Aurelio; SBARDELLA Angelica |
| Abstract: | Economic Complexity (EC) methods have gained increasing popularity across fields and disciplines. In particular, the EC toolbox has proved particularly promising in the study of complex and interrelated phenomena, such as the transition towards a greener economy. Using the EC approach, scholars have been investigating the relationship between EC and sustainability, proposing to identify the distinguishing characteristics of green products and to assess the readiness of productive and technological structures for the sustainability transition. This article proposes to review and summarize the data, methods, and empirical literature that are relevant to the study of the sustainability transition from an EC perspective. We review three distinct but connected blocks of literature on EC and environmental sustainability. First, we survey the evidence linking measures of EC to indicators related to environmental sustainability. Second, we review articles that strive to assess the green competitiveness of productive systems. Third, we examine evidence on green technological development and its connection to non-green knowledge bases. Finally, we summarize the findings for each block and identify avenues for further research in this recent and growing body of empirical literature. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:wpaper:202401&r= |
| By: | OECD |
| Abstract: | This paper reviews how competition authorities have incorporated innovation as part of their assessment in enforcement cases. It explores scenarios that have considered innovation from a static perspective, mostly analysing current and potential competition in well-identified product markets (incentives-based approach), as well as scenarios that have considered innovation from a dynamic perspective, often defining innovation markets (impact-based approach). It also looks at cases that have considered increases in innovation as potential justifications for decreases in competition. This note reviews how these different approaches have shaped market definition, the theories of harm considered, and even the design of remedies and commitments. |
| Date: | 2023–10–24 |
| URL: | https://d.repec.org/n?u=RePEc:oec:dafaac:301-en&r= |
| By: | Miranda De Souza Almeida, Felipe; Spolador, Humberto F.S. |
| Keywords: | Productivity Analysis, Production Economics, International Development |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343554&r= |
| By: | Christian Reimsbach-Kounatze; Andras Molnar |
| Abstract: | Data portability enhances access to and sharing of data across digital services and platforms. It can empower users to play a more active role in the re-use of their data and can help stimulate competition and innovation by fostering interoperability while reducing switching costs and lock-in effects. However, the effectiveness of data portability in enhancing competition depends on the terms and conditions of data transfer and the extent to which competitors can make use of the data effectively. Additionally, there are potential downsides: data portability measures may unintentionally stifle competition in fast-evolving markets where interoperability requirements may disproportionately burden SMEs and start-ups. Data portability can also increase digital security and privacy risks by enabling data transfers to multiple destinations. This note presents the following five dimensions essential for designing and implementing data portability frameworks: sectoral scope; beneficiaries; type of data; legal obligations; and operational modality. |
| Keywords: | data portability |
| Date: | 2024–06–29 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaad:25-en&r= |
| By: | Gabriel Chodorow-Reich; Plamen T. Nenov; Vitor Santos; Alp Simsek |
| Abstract: | We use data on stock portfolios of Norwegian households to show that stock market wealth increases entrepreneurship by relaxing financial constraints. Our research design isolates idiosyncratic variation in household-level stock market returns. An increase in stock market wealth increases the propensity to start a firm, with the response concentrated in households with moderate levels of financial wealth, for whom a 20 percent increase in wealth due to a positive stock return increases the likelihood to start a firm by about 20%, and in years when the aggregate stock market return in Norway is high. We develop a method to study the effect of wealth on firm outcomes that corrects for the bias introduced by selection into entrepreneurship. Higher wealth causally increases firm profitability, an indication that it relaxes would-be entrepreneurs’ financial constraints. Consistent with this interpretation, the pass-through from stock wealth into equity in the new firm is one-for-one. |
| JEL: | E22 E44 G50 L26 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32643&r= |
| By: | Baki Cem Sahin |
| Abstract: | [EN] The debates surrounding zombie firms have been reinvigorated by the implementation of support programs to mitigate the effects of the COVID-19 pandemic. Zombie lending poses threats to the economy by distorting the efficient allocation of resources and diminishing overall production capacity. Furthermore, zombie lending raises financial stability risks. This study delves into zombie lending, with particular interest in how it evolves and its effects in Turkiye. The findings reveal important outcomes. Firstly, the ratio of zombie firms in Turkiye has decreased after the COVID-19 pandemic subsequent to reaching its peak in 2020. Secondly, main creditor banks have been less inclined to cut credit lines to financially distressed firms, and this may have contributed to zombification. Lastly, zombie firms exert negative spillover to other firms. These findings emphasize that the challenges posed by zombie lending should be addressed to ensure the efficient allocation of resources, strengthen production, and safeguard financial stability. [TR] COViD-19 pandemisinin etkilerini azaltmaya yonelik destek programlariyla zombi firmalara iliskin tartismalar yeniden canlanmistir. Zombi krediler kaynaklarin verimli dagilimini bozarak ve ekonomideki uretim kapasitesini azaltarak ekonomiye tehdit olusturmaktadir. Ayrica zombi krediler finansal istikrara yonelik riskleri artirmaktadir. Bu calisma, zombi kredileri Turkiye'deki gelisimi ve etkileri ozelinde incelemektedir. Bulgular onemli sonuclar ortaya koymaktadir. Oncelikle, Turkiye'deki zombi firmalarin orani COVID-19 pandemisi sonrasinda 2020'de zirveye ulastiktan sonra azalmistir. Ikinci olarak, ana bankalar mali sikinti icindeki firmalara kredi kisitlamasini daha az uygulamis ve bu zombilesmeye katkida bulunmus olabilir. Son olarak, zombi firmalar diger firmalar uzerinde olumsuz etkiye sahiptir. Bu bulgular, kaynaklarin etkin dagilimini saglamak, uretimi artirmak ve finansal istikrari korumak icin zombi kredilerin ortaya cikardigi zorluklarin ele alinmasi gerektigini vurgulamaktadir. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tcb:econot:2410&r= |