|
on Small Business Management |
|
Issue of 2024‒08‒19
forty papers chosen by |
| By: | CONFRARIA Hugo (European Commission - JRC); FAKO Peter (European Commission - JRC); GAVIGAN James (European Commission - JRC); COMPANO Ramon (European Commission - JRC) |
| Abstract: | This brief provides JRC firm-level microdata-based analyses of innovation dynamics in the global automotive industry comparing EU firms to their global competitors. It takes the sector's top global players from the 2023 EU Industrial R&D Investment Scoreboard as a starting point, analyses clusters of R&D intensity, examines past financial performance and analyses participation in start-ups via corporate venturing. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138139 |
| By: | Cristiana Bendetti-Fasil; Giammario Impullitti; Omar Licandro; Petr Sedlacek; Adam Hal Spencer |
| Abstract: | R&D is procyclical and a crucial driver of growth. Evidence indicates that innovation activity varies widely across firms. Is there heterogeneity in innovation cyclicality? Does innovation heterogeneity matter for business cycle propagation? We provide empirical evidence that more productive firms are less procyclical in innovation. We develop a model replicating this observation, with selection as the driver of heterogeneous innovation cyclicality. We then examine how heterogeneous innovation and growth influence business cycle propagation. Dynamics of firm entry and exit, coupled with heterogeneous cyclicality, significantly amplify TFP shock propagation. Business cycle fluctuations give substantial welfare losses, with firm heterogeneity contributing significantly. |
| Keywords: | Growth, Business Cycles, Innovation, Heterogeneous Firms |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:not:notcfc:2024/03 |
| By: | Autio, Erkko (Imperial College Business School); Chiyachantana, Chiraphol (Singapore Management University); Castillejos-Petalcorin, Cynthia (Asian Development Bank); Fu, Kun (Loughborough University London); Habaradas, Raymund (De La Salle University); Jinjarak, Yothin (Asian Development Bank); Muftiadi, Anang (Universitas Padjadjaran); Park, Donghyun (Asian Development Bank); Prasarnphanich, Pattarawan (Chulalongkorn University); Quyên, Pham Minh (Thu Dau Mot University); Smit, Willem (Fulbright University Vietnam) |
| Abstract: | This report investigates the impact of digitalization on firm-level performance using survey data from 681 digital entrepreneurs across six Association of Southeast Asian Nations (ASEAN) countries. Results show that the reliance of the business on select digital applications and the digitalization of different aspects of the firm’s business models were found to be potent drivers of business model experimentation in entrepreneurial businesses. We also observed consistent mediation effects of digitalization variables on performance through their effect on business model experimentation, although the digitalization variables also exhibited strong direct effects on performance. This last observation signals that the adoption of digital technologies by entrepreneurial businesses has more wide-ranging beneficial impacts than their facilitating effect on business model experimentation. We consider the findings reported here to be of significant value for the design of entrepreneurial and digitalization policies in Asian developing economies and in emerging economies more widely. Our analysis points to important performance implications of digital technology adoption by entrepreneurial businesses. |
| Keywords: | digitalization; business model innovation; entrepreneurial performance; ASEAN; sustainability performance |
| JEL: | L26 O32 O33 |
| Date: | 2024–07–22 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0734 |
| By: | ESPARZA MASANA Ricard; WOOLFORD Jayne (European Commission - JRC) |
| Abstract: | Higher education institutions (HEIs) are increasingly expected to contribute to regional development and transformative innovation and a diversity of EU funding initiatives look to translate this strategic agenda across diverse institutional and territorial contexts. The European Institute of Innovation and Technology (EIT) has as an objective to increasingly capture the regional dimension through developing links to Smart Specialisation Strategies (RIS3), and, through its pilot HEI Initiative, to increase the innovation and entrepreneurial capacity of HEIs and better integrate them into with their innovation ecosystems. This report explores the varying role of, or approach to, this initiative in strengthening HEI’s contribution to and participation in territorial transformation, and aligning the different university missions to connect HEI entrepreneurship and innovation to the territory. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138229 |
| By: | Chong Yu (Graduate School of Business Administration, Kwansei Gakuin University); Masatoshi Kato (School of Economics & Research Center for Entrepreneurship (RECENT), Kwansei Gakuin University) |
| Abstract: | This study explores whether firms founded by user entrepreneurs have an advantage in raising external capital at start-up, distinguishing between end-user and professional user entrepreneurs. Drawing on the concept of user entrepreneurship in combination with the resource-based view of the firm, we argue that being user entrepreneurs serves as a positive signal to external providers of capital under information asymmetry. Using data based on original questionnaire survey for start-ups in Japan, it is shown that firms founded by user entrepreneurs, especially professional user entrepreneurs, are more likely to raise external capital at start-up. Furthermore, the advantage of user entrepreneurs is found to be more pronounced in firms that engaged in business-to-consumer (B2C) than in business-to-business (B2B). |
| Keywords: | User entrepreneur, end-users, professional users, resource-based view, B2C |
| JEL: | L26 M13 G30 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:kgu:wpaper:275 |
| By: | Kim, Jongduk (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Koo, Kyonghyun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kang, Gusang (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Hyuk-Hwang (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | This study investigates the role of Korean investors' outward foreign direct investment (OFDI) in the U.S. as a conduit for knowledge spillovers. Specifically, we focus on the impact of M&As and patent acquisitions on the innovation activities of acquiring firms, and the subsequent financial performance of both the acquirers and their domestic partners (vendors) within supply chains. The findings are as follows: First, the M&A investments in the U.S. firms have played a role in facilitating knowledge spillover from the U.S. to Korea, as shown by an increase in the cumulative number of backward patent citations after such deals. Second, the patent quality of Korean acquirers significantly explains variations in their domestic financial performance. Notably, the relationship between U.S. patent citations and financial performance strengthens in magnitude and significance when considering citations from earlier periods, especially within high-tech industries. Third, The U.S. patent quality of acquirers in high-tech is also positively correlated with the financial performance of their domestic first-tier suppliers. It appears that it takes an additional one to two years for U.S. patent quality improvement of Korean acquirers to translate into the financial performance of parent companies in Korea. Finally, policy Implication. The fact that it takes some time for innovation gains to be realized by domestic firms and to spill over to other related domestic agents in supply chains highlights the need for support policies to focus on improving performance over the medium to long term rather than the short term. |
| Keywords: | outward FDI; innovation acitivity and financial performance; Korea |
| Date: | 2024–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:2024_021 |
| By: | Mr. JaeBin Ahn; Chan Kim; Ms. Nan Li; Andrea Manera |
| Abstract: | This paper examines the impact of Foreign Direct Investment (FDI) on knowledge diffusion by analyzing the effect of firm-level FDI activities on cross-border patent citations. We construct a novel firm-level panel dataset that combines worldwide utility patent and citations data with project-level greenfield FDI and crossborder mergers and acquisitions (M&A) data over the past two decades, covering firms across 60 countries. Applying a new local projection difference-indifferences methodology, our analysis reveals that FDI significantly enhances knowledge flows both from and to the investing firms. Citation flows between investing firms and host countries increase by up to around 10.6% to 13% in five years after the initial investment. These effects are stronger when host countries have higher innovation capacities or are technologically more similar to the investing firm. We also uncover knowledge spillovers beyond targeted firms and industries in host countries, which are particularly more pronounced for sectors closely connected in the technology space. |
| Keywords: | Greenfield FDI; Brownfield FDI; cross-border M&A; Inward FDI; Outward FDI; Knowledge spillover; Patent citation; LP-DiD |
| Date: | 2024–07–12 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/152 |
| By: | RADOVANOVIC Nikola (European Commission - JRC); OZBOLAT Nida Kamil |
| Abstract: | The successful implementation of the Smart Specialisation approach in the EU has brought this concept to the attention of the EU Enlargement and Neighbourhood Region. Over the past six years, the majority of countries and economies in this region have initiated the Smart Specialisation process. Many have progressed to the final stages of the design process, while a few are already deeply engaged in the implementation phase. To support this process, the Joint Research Centre has developed targeted frameworks for the application of Smart Specialisation in a specific non-EU context. As Türkiye prepares to re-launch the development of Smart Specialisation Strategies (S3), it aims to apply the guidelines delineated in the S3 design and implementation frameworks used in the EU Enlargement and Neighbourhood Region. This study seeks to explore the capacities of the national and regional innovation ecosystems in Türkiye to adopt appropriate Smart Specialisation frameworks and methodologies, leveraging their innovation potential. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136212 |
| By: | Myriam Raymond (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université, DiPLab - Digital Platform Labor - SES - Département Sciences Economiques et Sociales - Télécom ParisTech, GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | The COVID-19 pandemic posed formidable challenges for small and medium-sized enterprises (SMEs) globally, with distinct impacts on those in Africa. This empirical study, conducted across five African countries, delves into the critical question of how African SMEs perceived, navigated, and implemented health-related information amidst the complexities of the pandemic. The study reveals multifaceted challenges faced by SMEs, emphasizing the importance of reliable information for their growth and resilience. Drawing from a diverse set of survey respondents, the research explores SMEs' responses to public measures, the clarity of messages, and the implications for public policy. Findings indicate that while technology plays a crucial role, challenges persist in accessing business information. The study also evaluates SMEs' perceptions of government communication, their responses to pandemic measures, and their trust in information sources. The nuanced insights contribute to discussions on effective governance, communication strategies, and technology use, providing valuable considerations for supporting SMEs in navigating crises. Despite limitations stemming from aggregated responses across diverse regions, this study offers key empirical evidence specific to COVID-19, shedding light on the intricate challenges faced by African SMEs and underscoring the need for targeted interventions to enhance their resilience. |
| Keywords: | Information Governance, Access to Information, Covid-19 pandemic, Health-Information Reliability, African SMEs. |
| Date: | 2024–05–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04634750 |
| By: | Reher, Leonie; Runst, Petrik; Thomä, Jörg; Bizer, Kilian |
| Abstract: | In order to better capture non-R&D based processes related to Learning by Doing, Using and Interacting (DUI) as a basis for policy advice, this paper empirically identifies DUI mode drivers of SME innovation. For the first time, a large set of conceptually derived indicators is used in a self-conducted survey. Using lasso regression as a data-driven selection technique capable of handling such a large number of potential predictors, we find that DUI learning involves a wide range of elements beyond interaction with external actors. Moreover, our results suggest that the relevance of DUI learning for predicting SME innovation depends on both the region and the type of innovation output. SME innovation in lagging regions is strongly related to the DUI mode, which is particularly pronounced in the case of intra-firm learning processes. These results suggest that R&D capacity is not the only main driver of SME innovation, especially in lagging regions, and therefore provide an indication of how firms can compensate for unfavourable conditions in their regional innovation environment. This in turn implies going beyond innovation policy in the narrow sense to a more holistic approach that may include links with other policy areas. |
| Abstract: | Um die nicht auf formaler Forschung und Entwicklung (FuE) basierenden Prozesse im Zusammenhang mit dem handwerksnahen Innovationsmodus des "Learning by Doing, Using and Interacting (DUI)" als Grundlage für die Gestaltung innovationspolitischer Maßnahmen besser zu erfassen, werden in diesem Forschungspapier die DUI-Treiber von Innovationen in kleinen und mittleren Unternehmen (KMU) empirisch ermittelt. Erstmals wird ein umfangreiches Set konzeptionell hergeleiteter DUI-Indikatoren in einer eigenen Erhebung erhoben und ausgewertet. Unter Verwendung der Lasso-Regression als datengetriebene Selektionsmethode, die in der Lage ist, mit einer so großen Anzahl potenzieller Prädiktoren umzugehen, zeigt sich, dass DUI-Lernen in KMU eine breite Palette von Elementen umfasst, die über die Interaktion mit externen Akteuren hinausgehen. Darüber hinaus deuten unsere Ergebnisse darauf hin, dass die Relevanz des DUI-Lernens als Treiber von Innovationen in KMU sowohl von der Region als auch von der Art des Innovationsoutputs abhängt. So hängt die Innovationstätigkeit von KMU in strukturschwachen Regionen besonders stark mit dem DUI-Modus zusammen, was im Fall von unternehmensinternen Lernprozessen besonders ausgeprägt ist. Diese und andere Ergebnisse deuten darauf hin, dass die FuE-Kapazität insbesondere in strukturschwachen Regionen nicht der einzige Treiber für Innovationen in KMU ist, und geben damit einen Hinweis darauf, wie Unternehmen ungünstige Bedingungen in ihrem regionalen Innovationsumfeld zumindest teilweise kompensieren können. Dies wiederum setzt voraus, dass man über die Innovationspolitik im engeren Sinne hinausgeht und einen ganzheitlicheren Ansatz verfolgt, der auch Verbindungen zu anderen Politikbereichen wie Arbeitsmarkt oder Bildung beinhaltet. |
| Keywords: | innovation measurement, innovation indicator, modes of innovation, SME innovation, regional innovation, lagging regions, lasso regression, variable selection, group lasso, ordinal predictors |
| JEL: | C50 C81 O3 O31 R11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifhwps:300235 |
| By: | Huseyin Ince (Department of Economics, Gebze Technical University); Salih Zeki Imamoglu (Department of Science and Technology Studies, Gebze Technical University); Mehmet Ali Karaköse (Department of Management, Gebze Technical University); Ufuk Cebeci (Department of Industrial Engineering, Istanbul Technical University); Murat Sagbas (National Defense University) |
| Abstract: | The concept of resilience, which has been studied extensively in different disciplines and has recently gained an increasing interest in organisational science, has rarely been studied in the absorptive capacity and innovation literature. In this study, we empirically tested the relationships between organisational resilience capacity, organisational absorptive capacity, and firm innovativeness. By studying 211 firms in Turkey, we found that: (1.a) competence orientation and broad resource networks are positively related to all absorptive capacity variables, (1.b) conceptual orientation is positively related to all absorptive capacity variables except knowledge transformation, (1.c) behavioural preparedness is positively related to knowledge assimilation, (1.d) deep social capital is positively related to knowledge transformation and (2) knowledge assimilation and knowledge exploitation are positively related to firm innovativeness. Also, we found that absorptive capacity mediates the relationship between resilience capacity and firm innovativeness. |
| Keywords: | Organisational resilience capacity, absorptive capacity, firm innovativeness. |
| JEL: | L20 L29 |
| Date: | 2024–07–12 |
| URL: | https://d.repec.org/n?u=RePEc:geb:wpaper:2024-02 |
| By: | CARAYANNIS Elias |
| 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 climate risks within different biogeographical regions, 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 features. This Report provides the findings for the regions of Attica and North Aegean regions, Greece, 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: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137322 |
| By: | Mr. Nathaniel G Arnold; Guillaume Claveres; Jan Frie |
| Abstract: | Relative to the US, productivity growth and investment in R&D in lagging in the EU, where it is more difficult to finance and scale up promising, innovative startups. Many of the most successful EU startups move elsewhere for financing, causing the EU to lose out on both the direct growth benefits and positive spillovers from these innovative firms. The EU could nurture innovative startups by accelerating the development of its venture capital (VC) ecosystem. Reducing regulatory frictions, especially ones that deter pensions funds and insurers from investing in VC, combined with well-designed tax incentives for R&D investments could help accelerate the development of the VC sector. These and other key CMU initiatives, such as the consolidation of stock markets and reforming and harmonizing insolvency regimes, will take time. Given the urgency to boost innovation, giving public financial institutions like the European Investment Fund a more active and expanded role in kickstarting VC markets where needed and in familiarizing investors with the VC asset class can be a helpful interim step. |
| Keywords: | Startups; Venture capital; Productivity; Capital Markets Union |
| Date: | 2024–07–12 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/146 |
| By: | Pedro Bento; Diego Restuccia |
| Abstract: | The well-documented decline in business dynamism, measured by the net entry rate of employer firms, has been proposed as an explanation for the productivity growth slowdown in the United States. We examine the role of nonemployers, firms without paid employees, in business dynamism and aggregate productivity. Between 1982 and 2014, the total number of firms per worker including nonemployers increased by 41\%, whereas employer firms per worker declined by -8.7%. Using a standard model of firm dynamics, we derive the implications for aggregate productivity associated with changes in firms per worker and relative size distributions. We find that firm dynamics imply an increase in aggregate productivity of 15.6%, about half the growth observed in the data, that is equally shared by the changes in firms per worker and relative sizes. These results contrast markedly with the much weaker 2.1% growth in aggregate productivity from firm dynamics when abstracting from nonemployer firms. Our results suggest the productivity growth slowdown is not due to changes in net firm entry, and highlight the quantitative importance of comprehensive measures of business dynamism in the U.S. data. |
| Keywords: | nonemployers, employer firms, business dynamism, productivity, TFP. |
| JEL: | O4 O51 E1 |
| Date: | 2024–07–20 |
| URL: | https://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-780 |
| By: | Brown, J. David (U.S. Census Bureau); Denes, Matthew (Carnegie Mellon University); Duchin, Ran (Boston College); Hackney, John (University of South Carolina) |
| Abstract: | Industry size standards that determine eligibility for small business subsidies have vastly increased over the past decade. We exploit quasi-random variation in the implementation of size standard increases to study the effects on small firms, subsidy allocation, and industry outcomes using Census Bureau microdata. Following size standard increases, revenues decline for an industry's smallest firms, and they are less likely to survive. We link these effects to a reallocation of government procurement contracts from smaller to larger firms. Consequently, industries become more concentrated and growth declines. These findings highlight the broad economic effects of changing eligibility for small business subsidies. |
| Keywords: | government subsidies, small firms, procurement |
| JEL: | E24 G38 H25 H57 L25 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17092 |
| By: | Cameron, Aliénor (Climate Economics Chair; EconomiX (Université de Paris-Nanterre); ADEME, Paris, France); Garrone, Maria (European Commission, DG GROW, Chief Economist Team (A1), Brussels, Belgium) |
| Abstract: | This paper analyses the relationship between firms' emission intensity and their corporate performance based on a constructed dataset providing detailed micro-level information of industrial firms covered by the EU ETS |
| Keywords: | EU ETS, heavy industry, emission intensity, corporate performance. |
| JEL: | D22 H23 L51 Q58 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:bda:wpsmep:wp2024/24 |
| By: | Karam Jo; Seula Kim |
| Abstract: | We study how friction in learning others’ technology, termed “imperfect technology spillovers, ” incentivizes firms to use different types of innovation and impacts the implications of competition through changes in innovation composition. We build an endogenous growth model in which multi-product firms enhance their products via internal innovation and enter new product markets through external innovation. When learning others’ technology takes time due to this friction, increased competitive pressure leads firms with technological advantages to intensify internal innovation to protect their markets, thereby reducing others’ external innovation. Using the U.S. administrative firm-level data, we provide regression results supporting the model predictions. Our findings highlight the importance of strategic firm innovation choices and changes in their composition in shaping the aggregate implications of competition. |
| Keywords: | competition, innovation, technology spillover, endogenous growth |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:24-40 |
| By: | Duygu Buyukyazici; Eva Coll-Martinez; ; ; |
| Abstract: | Despite the growing literature on the cultural and creative industries (CCIs) within the last decades, the understanding of the actual human capital that characterises these industries is still limited. The need for a framework to unfold the CCIs’ human capital increases when considering their long-attributed role in knowledge spillovers, cross-fertilisation, and innovation processes in the larger economy. In this regard, the present study provides the first conceptual and empirical framework to identify and evaluate the CCIs’ skill compositions by utilising the revealed skill requirements method based on the relative skill advantage, relatedness and complexity measures. Based on this framework, essential and complementary skills for the CCIs are identified and discussed in terms of the implications for regional specialisation. |
| Keywords: | cultural and creative industries, skill relatedness, skill complexity, regional specialisation. |
| JEL: | R39 Z10 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2421 |
| By: | LALANNE Marie (European Commission - JRC); MEYER Niels (European Commission - JRC) |
| Abstract: | Co-patents data show that Research and Innovation (R&I) collaborations are fragmented nationally and with a strong cross-border effect in the EU. The two main EU R&I policies (Framework Programme and Interreg Europe Programme) help overcoming these effects by steering R&I collaborations across Europe. Additionally, the two EU R&I policies seem to display some synergies: participation in Interreg 2014-2020 Europe Programme is positively correlated with participation in Horizon 2020 (H2020). Finally, being well-positioned in the network of R&I collaborations created through the Framework Programme has a positive impact on the patenting activity of EU regions. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136781 |
| By: | Martin Beraja; Wenwei Peng; David Y. Yang; Noam Yuchtman |
| Abstract: | Venture capital plays an important role in funding and shaping innovation outcomes, characterized by investors’ deep knowledge of the technology, industry, and institutions, as well as their long-running relationships with the entrepreneurship and innovation community. China, in its pursuit of global leadership in AI innovation and technology, has set up government venture capital funds so that both national and local governments act as venture capitalists. These government-led venture capital funds combine features of private venture capital with traditional government innovation policies. In this paper, we collect comprehensive data on China’s government and private venture capital funds. We draw three important contrasts between government and private VC funds: (i) government funds are spatially more dispersed than private funds; (ii) government funds invest in firms with weaker ex-ante performance signals but these firms exhibit growth rates exceeding those of firms in which private funds invest; and (iii) private VC funds follow government VC investments, especially when hometown government funds directly invest on firms with weaker ex-ante performance signals. We interpret these patterns in light of VC funds’ traditional role overcoming information frictions and China’s unique institutional environment, which includes important frictions on mobility and information. |
| JEL: | G18 G24 G28 G30 H19 O3 O38 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32701 |
| By: | Joyce P. Jacobsen (Hobart and William Smith Colleges, and Wesleyan University); Sooyoung A. Lee (Department of Economics, Hobart and William Smith Colleges) |
| Abstract: | A literature has developed in labor economics regarding employer discrimination and how it may be detrimental to firms, particularly firms operating in more competitive sectors. A second literature in international trade considers the effects of import competition and export orientation on gender employment and earnings gaps. Finally, factors affecting firm survival have been increasingly studied as more panel data have become available for firms. We unite these diverse literatures and test several pertinent hypotheses from them using a 2005-2018 panel of Vietnamese firms. We find that firms with higher proportions of female labor are more likely to survive, controlling for other firm-level and industry-level characteristics, and that exporting and foreign- owned firms have higher proportions of female labor. We also examine earnings and women-run firms to consider other dimensions of firm gendering and their effects on firm survival. |
| Keywords: | Vietnam, gender discrimination, trade competition |
| JEL: | D22 F16 J16 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:wes:weswpa:2024-009 |
| By: | HAMAGUCHI Nobuaki; João Carlos FERRAZ |
| Abstract: | Japanese start-ups are active in product development, but their human resource enhancement and intellectual property strategies are not advanced. In terms of funding, founder self-funding and loans are emphasized and reliance on venture capital funding is increasing. In terms of location, the emphasis is on attracting human resources and proximity to sales outlets, and they are looking for areas where it is easy to hire high-quality labor and obtain government support. Financing that emphasizes self-financing and private venture capital, location strategy that emphasizes access to hiring qualified employees, and entrepreneurial qualities that combine youthfulness and business experience are correlated with higher rates of sales growth. The results of the analysis suggest that policies that support start-ups' efforts in intellectual property strategy and talent acquisition, increasing the diversity of funding sources, and entrepreneurial support targeted to young and experienced personnel will promote the medium- to long-term growth of start-ups. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:eti:rdpsjp:24019 |
| By: | Dwi Rahmadi Nur Fathoni (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada); Evi Noor Afifah (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada) |
| Abstract: | This study aims to determine the effect of internet usage on entrepreneurship in Indonesia. Probit regression is used in this study because the dependent variable is a binary category that indicates a family’s involvement in entrepreneurial activities. The data used in this study is secondary data sourced from the Survei Sosial Ekonomi Nasional (Susenas) in 2020 and 2021. The results show that internet usage increases the probability of entrepreneurship in Indonesia by 7.4 percentage points and is statistically significant. Further analysis shows that the effect of the internet is greater for necessity-based entrepreneurship and only affects rural areas in Indonesia. This research may have implications to add to the literature for entrepreneurship development in Indonesia to compete globally. |
| Keywords: | internet, entrepreneurship, probit, susenas, Indonesia. |
| JEL: | D1 J1 M2 O1 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:gme:wpaper:202403005 |
| By: | LARANJA Manuel; REIMERIS Ramojus (European Commission - JRC) |
| Abstract: | This study reveals that five regions in Europe are embracing a new form of "discovery-oriented" industrial and innovation policy thinking and planning, characterized by open discovery processes that involve extended collaboration between regional authorities and external stakeholders. The study identifies two distinct types of "discovery" in the context of industrial and innovation policy-domain. First, "problem-discovery" involves the process of moving from global directives to regional-specific agendas, resulting in the definition of transformational goals that serve as an intermediary layer for concrete action roadmaps. Second, "system-discovery" focuses on understanding and sensing the system, identifying key actors and existing efforts in the territory aligned with the defined agenda. These processes also involve identifying barriers to change, with the creation of platforms that enable diverse stakeholders to collaborate, define shared goals, and develop actions with transformative potential. The regions are driven by the need to adapt and improve previous practices, but also to break the traditional approaches. However, the implementation of these new approaches remains an emerging experimental practice, very much dependent on the capacities of the owners of the processes. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138135 |
| By: | DI PIETRO Giorgio (European Commission - JRC) |
| Abstract: | There is a relatively large body of evidence suggesting that skill shortages have an adverse effect on firm performance. We use data from a recent Eurobarometer survey in an attempt to identify strategies that firms can implement to mitigate the negative effects of skill shortages. Our results indicate that the use of temporary work contracts, increased reliance on automation, and the abandonment of certain product lines are all successful measures that help companies prevent the detrimental effect of skill shortages on their turnover. On the other hand, we find that upskilling and reskilling current staff is a less successful measure to respond to skill shortages, though this result only holds for SMEs. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138816 |
| By: | Zouhour Ben Hamadi (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie); Helena Karjalainen (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie) |
| Abstract: | This study aims to deepen the knowledge of the profiles of SME managers in the Tunisian context. In this study, a quantitative analysis was conducted on a sample of 116 Tunisian SME managers. The first result is the typology of three different managerial identities: young managers with an accentuated Tunisian culture, managers with a mixed culture and senior managers with a reinforced Arab culture. Secondly, these three profiles are mainly differentiated by three pillars: (1) generation: age; (2) education and (3) attachment to a culture. This study shows the importance of avoiding amalgams between the different types of Tunisian managers when trading with Tunisian SMEs. |
| Abstract: | Cette étude vise à approfondir la connaissance des profils des dirigeants de PME dans le contexte tunisien. Une analyse quantitative a été menée sur un échantillon de 116 dirigeants de PME tunisiennes. Le premier résultat est la typologie de trois identités managériales différentes : les jeunes managers à la culture tunisienne accentuée, les dirigeants à la culture mixte et les doyens à la culture arabe renforcée. Deuxièmement, ces trois profils se différencient principalement par trois piliers : (1) la génération : l'âge ; (2) l'apprentissage et (3) l'attachement à une culture. Cette étude montre l'importance d'éviter les amalgames entre les différents types de dirigeants tunisiens lors des échanges commerciaux avec les PME tunisiennes. |
| Keywords: | SME, Tunisia, Generation, Managerial identity, Identité managériale, PME, Tunisie, Culture, Génération, Apprentissage |
| Date: | 2024–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04624721 |
| By: | Jantos, Louisa; Bäumle, Philipp; Feser, Daniel |
| Abstract: | There is a growing scholarly and political consensus about the potential of entrepreneurial ecosystems (EEs) to further sustainability by fostering sustainable start-ups. However, little is known about how the constituents of EEs as institutional framework for entrepreneurship affect the success of sustainable start-ups. Based on institutional theory, this paper develops and tests a conceptual framework to assess how the configuration of EE components affect mature EEs in their ability to support sustainable start-ups. Based on semi-structured interviews with EE stakeholders from Tel Aviv and Berlin, along with site visits and participatory observations, this cross-country analysis demonstrates that the attributes represent a promising explanatory approach for the sustainability alignment of an EE. The empirical results are threefold: (1) sustainable start-ups have special needs regarding their institutional environment and (2) require a more distinctive support structure surpassing the level of an EE. Hence, (3) each institutional component has to be tackled according to its spatial relevance to further sustainability. This translates into differentiated policy implications for fostering sustainability and theoretical advancements in EE research regarding spatial integration of sustainable start-up support. We contribute to institutional and entrepreneurship literature by implementing the idiosyncrasies of an EE's ability to further sustainability through their attributes. |
| Abstract: | Ein wachsender wissenschaftlicher und politischer Konsens besteht darüber, dass unternehmerische Ökosysteme (EEs) durch die Förderung nachhaltiger Unternehmensgründungen zur Nachhaltigkeit beitragen können. Jedoch ist nur wenig darüber bekannt, wie die Bestandteile von Ökosystemen als institutioneller Rahmen für Unternehmertum den Erfolg nachhaltiger Unternehmensgründungen beeinflussen. Auf der Grundlage der Institutionstheorie wird in diesem Beitrag ein konzeptioneller Rahmen entwickelt und getestet, um zu beurteilen, wie die Konfiguration der EE-Komponenten reife EEs in ihrer Fähigkeit, nachhaltige Unternehmensgründungen zu unterstützen, beeinflusst. Auf der Grundlage von semi-strukturierten Interviews mit EE-Akteur*innen aus Tel Aviv und Berlin sowie Standortbesuchen und teilnehmenden Beobachtungen zeigt diese länderübergreifende Analyse, dass die Attribute einen vielversprechenden Erklärungsansatz für die nachhaltige Ausrichtung eines EEs darstellen. Die empirischen Ergebnisse zeigen folgendes: (1) Nachhaltige Gründungen haben besondere Anforderungen an ihr institutionelles Umfeld und (2) benötigen eine ausgeprägtere Unterstützungsstruktur, die über das Niveau eines EEs hinausgeht. Folglich muss (3) jede institutionelle Komponente entsprechend ihrer räumlichen Relevanz für die Ausrichtung auf Nachhaltigkeit angegangen werden. Daraus ergeben sich differenzierte politische Implikationen für die Nachhaltigkeitsförderung und theoretische Weiterentwicklungen innerhalb der EE-Forschung in Bezug auf die räumliche Integration nachhaltiger Gründungsförderung. Indem die Besonderheiten der Fähigkeit eines EEs zur Förderung der Nachhaltigkeit durch ihre Eigenschaften umgesetzt werden, wird hiermit ein Beitrag zur Institutions- & Unternehmertumsliteratur geleistet. |
| Keywords: | entrepreneurial ecosystem, sustainable start-ups, case study, institutional theory |
| JEL: | O31 O38 Q01 R11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifhwps:300234 |
| By: | WOOLFORD Jayne (European Commission - JRC); BACHTRÖGLER-UNGER Julia; BURTON Anna; LALANNE Marie (European Commission - JRC); GULDA Krzysztof |
| Abstract: | The significant role of human capital and higher education in place-based development and innovation in response to the twin transition is increasingly recognised within the European policy and funding context. This research attempts to quantify the extent to which the ERDF – as one of the most significant sources of public investment for research and innovation - and ESF – as Europe’s main instrument investing in human capital - supported the provision of high-quality education and training relevant to the needs of territories and their smart specialisation (S3) domains in the 2014-2020 programming period. Through the application of a keyword search approach to data reported on projects under the two funds throughout the 2014-2020 programming period, the research identified that between 8 and 10% of projects funded concerned skills-related activity relevant to S3. This represented around 24.0 bn € (11%) of ERDF and 14.9 bn € (17%) of ESF investment. Moreover, around 9% of all analysed ERDF as well as ESF lead beneficiaries were identified as Higher Education Institutes (HEIs) with, specifically, 1% of all ERDF (c. 6, 130 projects) and 4% of all ESF (c. 2, 580 projects) corresponding to S3 Skills projects led by a HEI. The share of Skills for S3 funding at national level varied from 48% to 2% under ERDF and between 53% and 2% under ESF, reflecting factors such as varying eligibility and funding strategies, levels of economic development and educational attainment, demographic, economic and labour market factors as well as the diversity of education systems and HEIs across the EU territory. The results enable a better understanding of the size of investments in skills for territorial development from different funding sources, and the variables that reflect territorial differences, for example the positive territorial correlation between high investments in S3 skills and thriving innovation eco-systems. The ex-post analysis can inform the alignment of funding in support of skills for S3 and productivity ex-ante across different funds and will be supported by a similar analysis on initial allocations and programming priorities for the 2021-2027 programming period, as well as for investments from the Recovery and Resilience Fund (RRF). |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137083 |
| By: | MOLICA Francesco (European Commission - JRC); MARQUES SANTOS Anabela (European Commission - JRC) |
| Abstract: | The EU operates at least three major instruments supporting R&I across its regions: cohesion policy, Horizon Europe, and the Recovery and Resilience Facility. Cohesion policy and Horizon 2020 combined contribute critically to the R&D expenditure in most regions of Eastern Europe (often to the extent of 20% or higher) as well as many Mediterranean regions. R&I cohesion policy and Horizon 2020 funds exhibit very different regional concentration levels along North-South and East-West lines. However, Horizon 2020 funds are much more territorially concentrated than cohesion policy ones, with the bulk going to few areas leading in R&I, which may heighten the risk of regional disparities. In Eastern Europe and some parts of the Mediterranean even middle-income and more developed regions in Eastern European countries fail to attract higher amounts of Horizon 2020 than their cohesion policy allocation. RRF Third, the RRF provide substantial support to R&I in both countries with a weak and good innovation performance, placing it in-between cohesion policy and Horizon in terms of concentration. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136780 |
| By: | Brändle, Tobias |
| Abstract: | Unions and collective bargaining play a central role in shaping wages and influencing firms' employment decisions and firm survival, especially in industrialised countries, and where they are traditionally strong. Their impact depends on the institutional role unions (can) play in different countries, on the economic conditions, and it varies strongly between industries. Overall, the literature has analysed union wage effects quite extensively, and to a lesser degree also their effects on employment. Unions typically increase wages and other working conditions for their members and often all employees working in firms where collective bargaining applies. There is strong evidence for a union-non-union wage premium, even for individuals working similar jobs. At the same time, wages are higher in firms under collective bargaining, even in similar firms in the same industry. The size of these premiums can vary widely, however, between countries, time periods, and context. The union wage premium is typically stronger at the lower end of the wage distribution, such that strong unions are associated with lower wage inequality. This result is more or less undisputed in the literature. The union effect on employment is theoretically more ambiguous, but empirically labelled as 'the one constant' among the effects of unions: employment growth is two to four percent lower in firms with union bargaining. There may, however, also be positive effects of union bargaining on the quality of employment or employment duration from an individual perspective. A union effect on firm survival is the least well analysed among the three effects presented here. If unions redistribute rents to employees and if 'the one constant' holds, then firm survival might be negatively affected by union bargaining. The empirical evidence is, however, inconclusive. |
| Keywords: | collective bargaining, trade unions, wages, employment, firm survival |
| JEL: | J31 J51 J23 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1457 |
| By: | MARQUES SANTOS Anabela (European Commission - JRC); MOLICA Francesco (European Commission - JRC); CONTE Andrea (European Commission - JRC) |
| Abstract: | This brief investigates regional economic disparities within the European Union. The analysis focuses on GDP per capita and compares each region’s performance to two benchmarks: the highest GDP per capita in the EU (EU regional gap) and the highest GDP per capita within that region’s country (in-country gap). EU regional economic gaps narrowed on average from 2000 to 2021, while intra-country disparities widened, especially in regions with emerging or moderate innovation levels. A higher innovation capacity at regional level generally correlated with smaller economic gaps, both relative to the EU and within countries. Reduction in the economic gap is positively correlated with higher value of R&D expenditure per capita in the previous year, although this relationship does not imply causation. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136779 |
| By: | Patrick Mellacher (University of Graz, Austria) |
| Abstract: | I develop a simple Schumpeterian agent-based model where the entry and exit of firms, their productivity and markup, the birth of new industries and the social structure of the population are endogenous and use it to study the causes of rising inequality and declining “business dynamism†since the 1980s. My hybrid model combines features of i) the so-called Schumpeter Mark I (centering around the entrepreneur), ii) the Mark II model (emphasizing the innovative capacities of firms), and iii) Cournot competition, with firms using OLS learning to estimate the market environment and the behavior of their competitors. A scenario which is quantitatively calibrated to US data on growth and inequality replicates a large number of stylized facts regarding the industry life-cycle, growth, inequality and all ten stylized facts on “declining business dynamism†proposed by Akcigit and Ates (AEJ:Macro, 2021). Counterfactual simulations show that antitrust policy is highly effective at combatting inequality and increasing business dynamism and growth, but is subject to a conflict of interest between workers and firm owners, as GDP and wages grow at the expense of profits. Technological factors, on the other hand, are much less effective in combatting declining business dynamism in my model. |
| Keywords: | Agent-based economics, Joseph Schumpeter, Evolutionary economics, Innovation. |
| JEL: | B25 C63 D33 L11 O11 O33 O41 |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:grz:wpaper:2023-04 |
| By: | Pierre-Alex Balland; Ron Boschma; ; ; |
| Abstract: | This paper proposes an evolutionary take on regional development traps. Our definition of regional traps centers around the structural inability of regions to develop new complex activities. We distinguish between several different traps. Using industry data, we follow European regions over time and provide evidence on which regions in the EU are trapped, and what kinds of traps they have fallen into. Our econometric analysis shows that being trapped has a negative impact on employment and wage growth in regions. We also find evidence that our development trap indicator explains well whether regions are stuck in a regional development trap, as defined by Iammarino et al. (2020). |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2420 |
| By: | Dekkera, Thekla; Jantos, Louisa |
| Abstract: | Sustainability transformation needs regional engagement of the entirety of actors within. One central actor is the university with its mission and activities to transfer knowledge. This paper provides a first approach to identifying best practice regions for sustainability transformation within Europe and addresses potential literature gaps. By composite indexing of systemic sustainability indices and knowledge transfer metrics on a regional level as well as a subsequent systematic literature review, this work aims at (1) providing best practice regions for sustainability transformation and actor collaboration as well as (2) future research avenues. The study selects Copenhagen, Zurich, Stockholm, and Helsinki as regions of interest. It advocates exploring the dynamics within entire regions, emphasizing the interplay of actors in Regional Innovation Systems (RIS). |
| Abstract: | Die Transformation in Richtung Nachhaltigkeit erfordert ein regionales Engagement der Gesamtheit der Akteure. Ein zentraler Akteur ist die Universität mit ihrem Auftrag und ihren Aktivitäten des Wissenstransfers. Diese Studie bietet einen ersten Ansatz zur Identifizierung von Best-Practice-Regionen für die Nachhaltigkeitstransformation in Europa und geht auf mögliche Literaturlücken ein. Durch eine zusammengesetzte Indexierung von systemischen Nachhaltigkeitsindizes und Wissenstransfer-Metriken auf regionaler Ebene sowie eine anschließende systematische Literaturrecherche zielt diese Arbeit darauf ab, (1) Best-Practice-Regionen für die Nachhaltigkeitstransformation und die Zusammenarbeit von Akteuren zu identifizieren sowie (2) zukünftige Forschungsansätze zu identifizieren. Die Studie wählt Kopenhagen, Zürich, Stockholm und Helsinki als Regionen von Interesse aus. Sie plädiert dafür, die ganzheitliche Dynamik innerhalb der Regionen zu untersuchen und dabei das Zusammenspiel der Akteure in regionalen Innovationssystemen (RIS) zu betonen. |
| Keywords: | Regional Innovation System, Knowledge Transfer, best practice, Europe, University |
| JEL: | I23 O31 O35 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifhwps:300696 |
| By: | Silliman, Mikko (Dept. of Economics, Norwegian School of Economics and Business Administration); Willén, Alexander (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | This paper examines how worker power shapes the allocation of immigrants across firms, and the subsequent consequences of such sorting on firm performance and the careers of incumbent workers. Our analysis highlights several key results. First, unions push immigrants to enter less unionized, lower-paying, and lower-quality firms. Second, the less unionized firms are able to utilize the access to cheaper immigrant labor to scale up production, thereby outcompeting the more unionized firms and capturing market share. Third, incumbent workers in less unionized firms benefit by shifting into management positions and capturing some of the firm’s increased rents. Fourth, despite benefiting incumbent workers in less unionized firms, these workers are more likely to become union members themselves in response to greater contact with new immigrants. Broadly, our results cut across nearly all sectors, but are heightened in labor intensive firms, and muted in competitive markets. |
| Keywords: | Immigration; Worker Power; Unions; Firms |
| JEL: | J12 J13 J15 J16 |
| Date: | 2024–07–05 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhheco:2024_013 |
| By: | SIGNORELLI Serena (European Commission - JRC); TORRECILLAS JODAR Juan (European Commission - JRC); PAPAZOGLOU Michail (European Commission - JRC) |
| Abstract: | This technical report quantifies and analyses the parts of the EU’s long-term budget which have the potential to impact the Digital Decade targets and general objectives. In doing so, we first map five key funding instruments — Recovery and Resilience Facility, Cohesion Policy, Horizon Europe, Digital Europe Programme and Connecting Europe Facility-Digital — onto each Digital Decade target. Results of this exercise indicate that, out of the EUR 957 billion planned in total across these funding instruments, EUR 177 billion could potentially impact the domains related to the Digital Decade targets and EUR 27 billion for its general objectives. The digitalisation of businesses and of public services are the main cardinal points of focus, receiving 64% of the total mapped budget with potential to impact Digital Decade targets. The online provision of key public services and the basic digitalisation of small and medium enterprises are the two targets that receive the largest allocations. We also find that the allocation by Digital Decade target is homogeneous across countries with a few, interesting exceptions. From our findings, we conclude that the fund distribution seems balanced, with the exception of some targets that receive little specific attention, like edge nodes, electronic identification or quantum computing. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138243 |
| By: | Song, H.; Sarange, C.; Oderoh, A.; Dahl, Hauke; Jacobs-Mata, Inga |
| Abstract: | 1.5 billion people live in fragility and conflict-affected settings (FCAS) and they face an increased risk of food insecurity and poverty trap. A systems approach in collaboration with innovators in FCAS is needed to produce practical and inclusive solutions that can improve the resilience of food, land, and water systems (FLWS). CGIAR is in the unique position to produce transformative policies, programming, and market strategies to bring science-driven innovation to improve resilience among FCA communities and create a bridge between the humanitarian, development, and peace (HDP) nexus. This market report conducts a market assessment across 14 countries in Africa, the Middle East, and South Asia to inform a science-driven acceleration programme to scale CGIAR innovations in FCAS. The analysis in the report is from a newly developed database on FLWS-HDP innovation ecosystem actors, which includes 600+ innovator data covering 90+ solution types and 200+ funding supporters, including investors, governments, NGOs, hubs, and other collaborative ecosystem enablers. Additionally, the report draws insights from consultations with experts in the ecosystem ranging from CGIAR practitioners to innovation hubs and innovators (Chapter 1). The ecosystem mapping shows that the FLWS-HDP innovation ecosystem is still nascent in many FCA countries, and is largely concentrated on food production. Water resources, migration, and anticipatory action innovations only take up 20% of all innovations. Financial support to enable private innovators has been rising and 25% of the innovators mapped in the selected countries have raised funding amounting to over $330M as of November 2023, with investors from the private sector paving the way and with public-private partnerships (PPPs) increasingly playing an important role. Funding support from private investors and PPPs support early-stage innovation development by creating hubs, de-risking funding by co-investing with the private sector, and directly providing financial support to the innovators. International donors, governments and investors from the Global North are also prevalent in the ecosystem as 90% of actors supporting innovators are from outside the FCA countries. Local actors often work with international actors to implement programmes, co-invest, and help source high-impact innovators. There is little evidence of international research organisations’ activities in the FCAS so far (Chapter 2). Developing a sustainable FLWS-HDP innovation ecosystem in FCAS is met with challenges related to limited infrastructural resources, value chain disruptions, and heightened security risks. However, opportunities also exist, especially when innovators flexibly adapt innovations to address local challenges, and in settings where the solutions become tools to better facilitate and coordinate humanitarian, government, and private sector initiatives. Hence, supporting private sector innovation should prioritise localising solutions for the specific context to increase longerterm sustainability. Research organisations should support by developing systems to bring science to sector value chains and becoming expert support for innovators. Lastly, partnerships with governments, local actors, and international NGOs should be leveraged to bring innovations to tackle local challenges (Chapter 3). Finally, he report provides an overview of the macroeconomic and FCA context and an analysis of the FLW-HDP innovation ecosystem for each of the 14 countries The country overviews highlight that each country has a unique set of challenges and opportunities for developing a resilient innovation ecosystem, yet there are strong signals that innovators, support initiatives, and actors are making an impact in improving the conditions for FLW and HDP systems in FCA contexts (Chapter 4). |
| Keywords: | Food Security and Poverty, International Development, Land Economics/Use |
| Date: | 2023–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iwmirp:344119 |
| By: | Pierre Cotterlaz; Arthur Guillouzouic |
| Abstract: | This paper shows that the negative effect of geographical distance on knowledge flows stems from how firms gain sources of knowledge through their existing network. We start by documenting two stylized facts. First, in aggregate, the distance elasticity of patent citations flows has remained constant since the 1980s, despite the rise of the internet. Second, at the micro level, firms disproportionately cite existing knowledge sources, and patents cited by their sources. We introduce a framework featuring the latter phenomenon, and generating a negative distance elasticity in aggregate. The model predicts Pareto-distributed innovator sizes, and citation distances increasing with innovator size. These predictions hold well empirically. We investigate changes of the underlying parameters and geographical composition effects over the period. While the distance effect should have decreased with constant country composition, the rise of East Asian economies, associated to large distance elasticities, compensated lower frictions in other countries. |
| Keywords: | Knowledge Diffusion;Innovation Networks;Spatial Frictions;Patent Citation |
| JEL: | L14 O33 R12 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cii:cepidt:2024-08 |
| By: | DI PIETRO Giorgio (European Commission - JRC) |
| Abstract: | Skill shortage is an impediment to innovation and economic growth. It is a serious problem in the EU that may undermine its competitiveness, Data from a recent Eurobarometer survey suggest that EU companies perceive more problems in recruiting staff with adequate skills than comparable companies outside the EU. Additionally, the former are also more likely to report than the latter that they have difficulties in filling jobs for master's or PhD degree holders and in recruiting R&D experts. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138167 |
| By: | Paul Heidhues (Heinrich Heine University Düsseldorf); Mats Kösters (Central European University, Vienna); Botond Kőszegi (University of Bonn) |
| Abstract: | We develop a model of digital ecosystems based on the assumption that a multimarket firm can use a sale in or data from one market to steer users toward its products in other markets. Due to this “cross-market leverage, ” a market leader at an “access point” (where users begin their online journeys) has a high value from offering services in connected markets (where users continue their journeys), and can thus make profitable takeovers. Indeed, because the firm has the threatening outside option of acquiring, and steering users toward, its target’s competitor, it can take over the target at a discount. In contrast, other firms have no or smaller incentives for takeovers, explaining why ecosystems grow out of market leaders at access points. Conversely, cross-market leverage also implies that once an ecosystem has grown, it has an increased value of controlling access points, so it may go to great lengths to dominate these markets. Our theory’s logic suggests that ecosystems have mixed implications for consumer welfare. Under plausible assumptions, a to-be ecosystem takes over market leaders, and this consolidation of good services across markets benefits consumers in the short run. But an ecosystem’s takeovers and dominance of access points lower incentives for entry and innovation, and lower the efficiency of access-point markets with superior alternatives. Hence, the long-run welfare implications of ecosystem growth are often negative. |
| Keywords: | Digital ecosystems, takeover, contestability, entry, envelopment, default effects, steering |
| JEL: | L41 L86 L22 D43 D83 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkdps:329 |