|
on Small Business Management |
|
Issue of 2025–04–14
thirty papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Lorena M. D’Agostino (University of Milano-Bicocca); Rosina Moreno (AQR-IREA, University of Barcelona); Damián Tojeiro-Rivero (ESADE-University Ramon Llull) |
| Abstract: | Taking the long-established evidence on knowledge spillovers that states that part of the new created knowledge spills over to other firms mostly located in the physical proximity, we aim at providing evidence on the role of green knowledge spillovers on firms’ innovation. We posit that in addition to internal factors, firm innovation is determined by external regional factors, among which we specifically focus on the spillovers generated by environmental EU-funded research at the regional level. The results indicate that the presence of partners engaged in EU-environmental projects in a region has a positive and significant effect on process innovation. |
| Keywords: | innovation; environment; EU-funded research; Framework Programme; region; firm JEL classification: R11; O31; O44 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:aqr:wpaper:202409 |
| By: | Becker, Annette; Hottenrott, Hanna; Mukherjee, Anwesha |
| Abstract: | Personality drives human decision-making. Research on corporate research and development(R&D), however, typically considers strategic decision-making to be independent of the decisionmaker's personality traits. This study investigates the impact of CEO personality on scaling activities in young firms. In particular, we focus on R&D and investment decisions building on an entrepreneurial decision model that illustrates the different roles of major personality trait (ROCEAN: risk tolerance, openness to experience, conscientiousness, extraversion, neuroticism) in taking both R&D and investment decisions. Results based on detailed data from founders in 4, 732 startups founded between 2011 and 2017 in Germany, show that scaling decisions in entrepreneurial firms are strongly imprinted by the CEO's personality. We find that higher risk tolerance and openness to experience result in a higher likelihood that the firm engages in R&D but only the former matters for levels of R&D expenditures. Comparing R&D decisions to tangible investments, we find that risk tolerance plays a more prominent role in the former but higher scores for openness also drive tangible investments. Founders with higher scores for agreeability and neuroticism are less likely to invest in growth in terms of R&D and tangible investments. More conscientious founders show lower R&D engagement but invest more in tangible assets. We discuss implications for entrepreneurship research and policy. |
| Keywords: | Start-ups, Research & Development, Investment Decisions, Personality Traits, Risk tolerance |
| JEL: | D91 G11 L26 O32 O33 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:314416 |
| By: | Silva Neira, Ignacio; Rodríguez González, Carlos; Pédussel Wu, Jennifer |
| Abstract: | Globalization has significantly influenced economic policy in Latin America. After the debt crisis of the 1980s, capital controls were removed leading to a substantial increase in Foreign Direct Investment (FDI) to the region. Chile, in particular, has extensively promoted free international integration, with the import of technology through FDI playing a major role in its economic development. During the 1990s, Chile experienced a period of rapid GDP growth, increased exports, and higher productivity. However, its productive dynamism has since stalled, trapping the country in an income plateau. Insights from evolutionary economics provide a framework for understanding this phenomenon, where neoclassical theory falls short. This study seeks to provide empirical evidence on whether FDI has promoted or hindered the innovative performance of domestic firms in Chile. Using firm-level data, the research employs the well-known CDM model to address selection bias in innovation efforts. The econometric analysis measures the impact of foreign competition on local innovation, specifically examining how foreign ownership and competition within economic sectors influence innovation outputs in local firms. The findings indicate that firms facing higher levels of foreign competition are less likely to implement new processes or products. These results offer valuable policy implications, highlighting the nuanced effects of FDI on host economies. The impact of FDI varies depending on the type of investment, the economic sector, and the technology introduced. Consequently, strategies aimed at leveraging FDI for economic catch-up must account for these variances and focus on fostering local innovation and technological advancement. |
| Keywords: | Foreign Direct Investment, CDM Model, Innovation, Technology transfer |
| JEL: | F21 O33 L25 O54 D22 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ipewps:313642 |
| By: | Moore, Bradley Adam |
| Abstract: | This essay aims to investigate the significant role that entrepreneurship, marketing, Internet of Things (IoT), and artificial intelligence (AI) play in the transformation of startups into global enterprises. It explores how the integration of these four domains can drive innovation, enhance customer engagement, optimize operations, and foster business growth. The essay also discusses the challenges and opportunities that arise when leveraging entrepreneurship, marketing, IoT, and AI in the context of scaling up a business. Through a comprehensive analysis of relevant literature and case studies, this essay provides valuable insights into the interplay between these domains and their impact on the success of startups in the global marketplace. |
| Date: | 2023–06–05 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:hw9qm_v1 |
| By: | Sanja Samirana Pattnayak |
| Abstract: | This study contributes to the literature on digitalisation in developing countries by examining its role in export intensity and firm productivity in Indian manufacturing from 2000 to 2021. Using fixed effects and the system generalised method of moments (GMM) model, the analysis draws on firm-level data from the Prowess database, encompassing approximately 11, 000 manufacturing firms. The findings reveal that digitalisation amongst India’s manufacturing firms is positively associated with both export intensity and productivity, after accounting for firm characteristics and heterogeneity. Specifically, a 1% increase in digital intensity corresponds to a 0.16% increase in exports. This effect is further enhanced when expenditure on internet services and software development is included, raising the export impact to 0.21% per 1% increase in digital intensity. Additionally, the results indicate that a 1% increase in digitalisation intensity leads to a 0.8% growth in total factor productivity. These findings have significant policy implications, particularly as digitalisation increasingly shapes the global and Indian economies. They underscore the need for strategies to promote digital adoption in manufacturing to enhance competitiveness and productivity. |
| Keywords: | digitalisation; productivity; exports; servicification; manufacturing; India |
| JEL: | C33 D24 F14 J24 L60 O33 |
| Date: | 2025–03–19 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2024-39 |
| By: | Vivarelli, Marco; Piva, Mariacristina; Tani, Massimiliano |
| Abstract: | Labor mobility is considered a powerful channel to acquire external knowledge and trigger complementarities in the innovation and R&D investment strategies; however, the extant literature has focused on either scientists' mobility or migration of high-skilled workers, while virtually no attention has been devoted to the possible role of short-term business visits. Using a unique and novel database originating a country/sector unbalanced panel over the period 1998-2019 (for a total of 8, 316 longitudinal observations), this paper aims to fill this gap by testing the impact of BVs on R&D investment. Results from GMM-SYS estimates show that short-term mobility positively and significantly affects R&D investments; moreover, our findings indicate - as expected - that the beneficial impact of BVs is particularly significant in less innovative countries and in less innovative industries. These outcomes justify some form of support for BVs within the portfolio of the effective innovation policies, both at the national and local level. |
| Keywords: | Business visits, labor mobility, knowledge transfer, R&D investments |
| JEL: | O3 F2 J6 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1586 |
| By: | Gert Bijnens (Economics and Research Department, National Bank of Belgium); Sam Desiere (Ghent University); Tiziano Toniolo (IRES/LIDAM, UCLouvain) |
| Abstract: | Policies supporting small businesses are popular among policymakers but often criticised by economists for their potential to distort the economy. This paper provides a comprehensive evaluation of a unique policy that subsidises the first employee. Empirically, we find that the policy led to a surge in the number of firms employing exactly one employee, without a noticeable effect on the number of firms with two or more employees. A simple frictionless general equilibrium model of occupational choices predicts the empirical facts remarkably well. Leveraging our model, we show that the general equilibrium effects on wages and aggregate output are likely to be small. However, the policy is expensive. Our findings support the traditional view that size-dependent subsidies distort the optimal allocation of resources.. |
| Keywords: | size-dependent policies; firm entry; small firms; wage subsidies; payroll taxes. |
| JEL: | D22 H25 J08 L25 L26 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202503-473 |
| By: | Weiss, Tim |
| Abstract: | Modern-day entrepreneurship ideology prominently features religious characteristics. When viewed through the analytical foil of religion, the sacred cosmos of entrepreneurial capitalism comes into relief, endowing entrepreneurship with a meaning structure of mysterious, awesome, and seductive qualities. |
| Date: | 2023–06–19 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:gam6k_v1 |
| By: | Jameel, Alaa S. (Cihan University-Erbil); Harjan, Sinan Abdullah; Ahmad, Abd Rahman |
| Abstract: | The purpose of this study is to examine the measure the Behavioral intentions (BI) to use artificial intelligence (AI) among managers in small and medium enterprises. the targets population of this study was the SMEs managers in Baghdad City after ensuring that the managers were using some form of AI. 184 valid questionnaires have been analyzed by Smart-PLS. The results indicated that performance expectancy (PE), Social influence (SI), Facilitating Conditions (FC), and Top management support (TMS) have a positive and significant impact on behavioral intention to use AI among the managers in SMEs; on the other hand, the effort expectancy (EE) has an insignificant impact on behavioral intention to use AI among the managers. |
| Date: | 2023–07–10 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:w69yh_v1 |
| By: | Abdoulaye Kané; Nadine Levratto |
| Abstract: | This paper investigates how local factors at the local and firm levels affect French construction firms' productivity (labour productivity and total factor productivity). We use a multilevel model to disentangle firm-specific and location-specific effects. The results cover the period 2009-2019 and confirm the importance of firm-specific determinants of productivity, mainly age and size. Our results also emphasise the influence of location and local characteristics. We find that the local unemployment rate hurts productivity, and our results bring some evidence of the existence of positive external agglomeration effects. These results remain robust to analysis by company size. |
| Keywords: | French construction firms; Heterogeneity of productivity; Localisation Factors; Multilevel Models |
| JEL: | C31 D24 L74 R15 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:drm:wpaper:2025-19 |
| By: | Mufaddal Baxamusa |
| Abstract: | I investigate whether the differences in R&D expenditures as reported in BRDIS and Compustat can be explained by the firm having multiple R&D establishments by using the data from LBD and BRDIS to classify the firms into single R&D establishments and multi-R&D establishment firms. |
| Keywords: | BRDIS, LBD, Compustat |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cen:tnotes:25-04 |
| By: | Fontanelli, Luca; Guerini, Mattia; Miniaci, Raffaele; Secchi, Angelo |
| Abstract: | While artificial intelligence (AI) adoption holds the potential to enhance business operations through improved forecasting and automation, its relation with average productivity growth remain highly heterogeneous across firms. This paper shifts the focus and investigates the impact of predictive artificial intelligence (AI) on the volatility of firms’ productivity growth rates. Using firm-level data from the 2019 French ICT survey, we provide robust evidence that AI use is associated with increased volatility. This relationship persists across multiple robustness checks, including analyses addressing causality concerns. To propose a possible mechanisms underlying this effect, we compare firms that purchase AI from external providers (“AI buyers”) and those that develop AI in-house (“AI developers”). Our results show that heightened volatility is concentrated among AI buyers, whereas firms that develop AI internally experience no such effect. Finally, we find that AI-induced volatility among “AI buyers” is mitigated in firms with a higher share of ICT engineers and technicians, suggesting that AI’s successful integration requires complementary human capital. |
| Keywords: | Dairy Farming, Production Economics, Research and Development/Tech Change/Emerging Technologies, Resource/Energy Economics and Policy |
| Date: | 2025–04–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:355806 |
| By: | Zainab Iftikhar (University of Bonn & CEPR); Anna Zaharieva (Bielefeld University) |
| Abstract: | In this study we evaluate the effects of low-skilled immigration on small businesses, wages and employment in Germany. We develop a search and matching model with heterogeneous workers, cross-skill matching, and endogenous entry into entrepreneurship. The model is calibrated using German Socio-Economic Panel (SOEP) data. Quantitative analysis shows that low-skilled immigration benefits high-skilled workers while negatively affecting the welfare of low-skilled workers. It leads to the endogenous expansion of immigrant entrepreneurial activities, generating positive spillovers for all demographic groups except native entrepreneurs. Overall, there is a marginal loss to the economy in terms of per worker welfare. This loss is mitigated with increased skilled migration from India. Policies restricting immigrant entrepreneurship relax competition for native small businesses but reduce welfare for all other worker groups. Ethnic segregation of small businesses benefits low-skill native entrepreneurs. |
| Keywords: | Entrepreneurship, small business, self-employment, search frictions, immigration |
| JEL: | J23 J31 J61 J64 L26 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkdps:358 |
| By: | Botsari, Antonia; Gvetadze, Salome; Lang, Frank |
| Abstract: | This working paper provides an updated overview of the key markets the EIF focuses on, highlighting the challenges and opportunities in SME financing during these uncertain times. It reviews the overall market environment, explores developments in SME equity, guarantees, securitisation, and inclusive finance markets, and discusses how these areas are shaping the support available to SMEs. The paper reflects the EIF's commitment to addressing financing gaps and fostering sustainable growth across Europe. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eifwps:313620 |
| By: | Rouvinen, Petri; Ylhäinen, Ilkka |
| Abstract: | Abstract Finnish businesses face fewer financial challenges than their European peers. To the extent financial challenges do exist, they disproportionately affect young, small, innovative, internationally focused, and growth-seeking companies. Our findings are based on extensive firm-level data. The data and our approach dictate that the results should be interpreted from the point of view of a representative firm and from a long-term, structural perspective, with a focus on debt financing. Finland’s financing challenges stem primarily from equity, not debt. The nation’s bank-centric financial system inadequately supports growth driven by intangible assets. Moreover, the growth ambitions and abilities of company owners, boards, and executives leave something to be desired. We posit that Finland’s fundamental issue is demand, not supply, of financing. Capital availability is sufficient. The core problem is insufficient initiative in identifying, capitalizing on, and scaling new ideas. |
| Keywords: | Business finance, Financial constraints, Debt finance, Economic growth |
| JEL: | E22 G30 G32 O16 |
| Date: | 2025–04–08 |
| URL: | https://d.repec.org/n?u=RePEc:rif:report:161 |
| By: | Tanu Goyal (Indian Council for Research on International Economic Relations (ICRIER)); Havishaye Puri (Indian Council for Research on International Economic Relations (ICRIER)); Riya Khanna |
| Abstract: | This report presents comprehensive inter-temporal and cross-sectional insights based on a survey of 2, 365 MSMEs, spread over 12 states and more than 20 clusters. It examines the year-on-year performance of firms and compares firms which are integrated on e-commerce platforms with the non-integrated firms, focusing on business metrics and well as other parameters like the firms' ability to access finance and international markets. The report highlights that e-commerce integration that began as a post-pandemic necessity, is now becoming a strategic choice to address some structural bottlenecks that the MSMEs face such as lack of access to finance and international markets. It shows that digitalisation is a key driver of accelerated growth. Moreover, it has important second order benefits that contributes to enterprise development. |
| Keywords: | MSMEs, digitalisation, survey, e-commerce, Infrastructure, icrier |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:bdc:report:25-r-10 |
| By: | Martha Stinson; Sean Wang |
| Abstract: | We introduce the Business Dynamics Statistics of Human Capital (BDS-HC) tables, a new Census Bureau experimental product that provides public-use statistics on the workforce composition of firms and its relationship to business dynamics. We use administrative W-2 filings to combine population-level worker demographic data with longitudinal business data to estimate the demographic and educational composition of nearly all non-farm employer businesses in the United States between 2006 and 2022. We use this newly constructed data to document the evolution of employment, entry, and exit of employers based on their workforce compositions. We also provide new statistics on the interaction between firm and worker characteristics, including the composition of workers at startup firms. We find substantial changes between 2006 and 2022 in the distribution of employers along several dimensions, primarily driven by changing workforce compositions within continuing firms rather than the reallocation of employment between firms. We also highlight systematic differences in the business dynamics of firms by their workforce compositions, suggesting that different groups of workers face different economic environments due to their employers. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:25-20 |
| By: | Juliana Oliveira-Cunha; Bruno Serra-Lorenzo; Anna Valero |
| Abstract: | In this policy brief, we present new data from a survey of 373 UK firms conducted in May 2024 in partnership with the Confederation of British Industry (CBI). This is a follow-up to our two earlier surveys which revealed that firms adopted more new digital technologies in response to the Covid-19 pandemic. The surveys showed that such innovative activity had persisted, but that innovation patterns were uneven - with larger and more digitised businesses being more likely to adopt new technologies since the pandemic. Since then, UK businesses and consumers have faced significant challenges, including the cost-of-living and energy crises, while continuing to adapt to changes brought about by Brexit. This survey wave provides an updated view on business innovation through crises and change in the early 2020s. |
| Keywords: | Covid-19, Technological change, Brexit |
| Date: | 2025–04–02 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepsps:50 |
| By: | Rossana Mastrandrea (Department of Management, University of Turin, Torino, Italy); Fabio Montobbio (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy – ICRIOS, Bocconi University, Milano, Italy – BRICK, Collegio Carlo Alberto, Torino, Italy); Gabriele Pellegrino (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy); Massimo Riccaboni (IMT School for Advanced Studies, Lucca, Italy – IUSS, Pavia, Italy); Valerio Sterzi (Bordeaux School of Economics (BSE), University of Bordeaux, CNRS, UMR 6060, Bordeaux, France) |
| Abstract: | This study examines the roles of public and private sector actors in the development of mRNA vaccines, a breakthrough innovation in modern medicine. Using a dataset of 151 core patent fam- ilies and 2, 416 antecedent (cited) patents, we analyze the structure and dynamics of the mRNA vaccine knowledge network through network theory. Our findings highlight the central role of biotechnology firms, such as Moderna and BioNTech, alongside the crucial contributions of univer- sities and public research organizations (PROs) in providing foundational knowledge. We develop a novel credit allocation framework, showing that universities, PROs, government and research cen- ters account for at least 27% of the external technological knowledge base behind mRNA vaccine breakthroughs—representing a minimum threshold of their overall contribution. Our study offers new insights into pharmaceutical and biotechnology innovation dynamics, emphasizing how Mod- erna and BioNTech’s mRNA technologies have benefited from academic institutions, with notable differences in their institutional knowledge sources. |
| Keywords: | breakthrough innovation, innovation networks, patent analysis, mRNA vaccines, COVID- 19 |
| JEL: | I10 I18 L65 O31 O34 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ctc:serie5:dipe0047 |
| By: | Enriques, Luca; Nigro, Casimiro A.; Tröger, Tobias |
| Abstract: | Venture capital ("VC") has built a solid reputation for spurring innovation and economic growth, thus emerging as a crown jewel of the U.S. economy since the 1980s. The development of the U.S. VC market has benefited from the enabling nature of U.S. (Delaware) corporate law, which allows parties to devise a complex contractual framework that economists consider the best realworld solution to the market frictions bedeviling the finance of high-tech innovative projects. The law and finance literature has paid attention to corporate law as one of the determinants of VC investments by examining how variations in shareholder protection shape VC contracting. It has underscored the importance of flexible corporate law to enable the tailor-made arrangements that define VC-backed firms' unique governance structure. Vice versa, it has also documented anecdotally how mandatory corporate laws can impede the adoption and use of some specific components of the U.S. contractual framework. This article contributes to this literature, first, by conceptualizing, in a general theoretical framework, the role that flexible or rigid corporate law in action plays in supporting or hindering VC. Second, it identifies the channels through which mandatory corporate law constrains VC contracting. Third, it documents the real-world significance of these phenomena by illustrating how the constraints stemming from the corporate law regimes in force in two European jurisdictions, namely Germany and Italy, impact the transplant of the contractual framework governing VC deals in the U.S. |
| Keywords: | Comparative Corporate Law, Comparative Corporate Governance, Entrepreneurship, Financial Contracting, Private ordering, Start-ups, Venture Capital |
| JEL: | G38 K22 L26 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:lawfin:313659 |
| By: | Yuwandono, Rr Jihan Faadhilah; Maisyaroh, Siti; Ridayati, Salija; Pandin, Maria Yovita R |
| Abstract: | The purpose of this study was to determine the level of understanding and concern of Micro, Small and Medium Enterprises in the gate Garment ethical paper relating to the application of green accounting in its business. Green Accounting is the development of accounting information, which has its own role through voluntary reporting in the company's financial statements related to environmental costs. Observation, interview and documentation techniques were used to collect research data. Data analysis in this qualitative descriptive research using Miles and Huberman data analysis model in (Sugiyono, Metode Penelitian Kuantitatif, Kualitatif, dan R&D., 2017) specifically reduces data, presents data, then makes conclusions. The results of this study indicate that two out of three Micro, small and medium Garment business actors in Gerbang Kertasusila understand and understand about good care in maintaining the work environment as a form of green accounting. Although for details about the expenditure of business costs garment and the environment they have not telesuri in detail but they realize that the environmental cost is a responsibility that is loaded on the financial statements of their businesses that do not include details, but they recognize that the environmental cost is the responsibility of reporting on their business finance research. |
| Date: | 2023–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:ztq9p_v1 |
| By: | Drake, Samielle (Department of Economics, Umeå University) |
| Abstract: | This study examines the impact of local market concentration on the participation and success of small and medium enterprises (SMEs) in Swedish municipal cleaning service procurement auctions. A 10 percentage point reduction in the joint market share of the four largest firms (CR4), while maintaining a constant Herfindahl-Hirschman Index (HHI), results in a 7.5% increase in SME participation and raises the likelihood of an SME winning by 2.4%. Furthermore, the 2014 revisions to the EU public procurement directives mitigated the adverse effects of market concentration. However, despite the increase in participation, there is no evidence that the success rates of SMEs improved following the implementation of the revised EU directives. |
| Keywords: | Public Procurement; Market Concentration; SMEs; Competition; Regulations |
| JEL: | D44 H57 L13 L33 |
| Date: | 2025–03–11 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:umnees:1034 |
| By: | Enriques, Luca; Nigro, Casimiro A.; Tröger, Tobias |
| Abstract: | Policymakers around the globe have sought to stimulate Venture Capital (VC) investments, and an extensive literature has inquired into the institutional determinants of a vibrant VC market, including corporate law. We contribute to that literature by exploring the significance of corporate law for VC contracting and hence VC investments. Corporate law's relative rigidity or flexibility is key to the efficiency of the contractual technology governing VC deals. Importantly, it can hamper such transactions through a number of "constraints, " which we have identified in a companion paper. To illustrate our point, in another companion paper, we take German and Italian corporate laws as two case studies and show how they are largely averse to VC contracting. In addition, we show that the regulatory constraints they impose stem from blackletter corporate law much less often than from scholarly constructs and courts' interpretations. This chapter anticipates two objections that cast doubt over the importance of our findings as to the construction of vibrant VC markets in Germany and Italy. Specifically, the first of these objections is that VC funds and entrepreneurs planning to run their startups in Germany and Italy can circumvent the strictures of local corporate laws by incorporating abroad, and the other is that formal contracts are inconsequential in VC deals, meaning that the regulatory constraints we document are irrelevant. Meanwhile, the chapter also shows that the detailed understanding of regulatory constraints unveiled by our research can inform more effective policymaking. Ultimately, we make two policy recommendations: first, we propose the adoption of a statutory provision that would explicitly insulate the arrangements that typically shape U.S. VC deals from undue interventions; and, second, we argue in favor of a standard charter aligned with U.S. VC transactional practice that the law itself should declare entirely enforceable. |
| Keywords: | Comparative Corporate Law, Comparative Corporate Governance, Entrepreneurship, Financial Contracting, Private Ordering, Startups, Venture Capital, Entrepreneurial Finance |
| JEL: | G38 K22 L26 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:lawfin:313660 |
| By: | Jesús Fernández-Villaverde; Yang Yu; Francesco Zanetti |
| Abstract: | Defensive hiring of researchers by incumbent firms with monopsony power reduces creative destruction. This mechanism helps explain the simultaneous rise in R&D spending and decline in TFP growth in the US economy over recent decades. We develop a simple model highlighting the critical role of the inelastic supply of research labor in enabling this effect. Empirical evidence confirms that the research labor supply in the US is indeed inelastic and supports other model predictions: incumbent R&D spending is negatively correlated with creative destruction and sectoral TFP growth while extending incumbents’ lifespan. All these effects are amplified when ideas are harder to find. An extended version of the model quantifies these mechanisms’ implications for productivity, innovation, and policy. |
| Date: | 2025–03–11 |
| URL: | https://d.repec.org/n?u=RePEc:oxf:wpaper:1072 |
| By: | Evrard, Johanne; Parisi, Laura; Rouveyrol, Clément; van Overbeek, Fons; Arampatzi, Alexia-Styliani; Christie, Rebecca |
| Abstract: | The European Union requires a single market for capital. Well-developed and integrated capital markets support economic growth and resilience across the region, offering benefits for businesses, households, and financial stability. This paper examines the importance of CMU in achieving five strategic objectives: supporting innovation and productivity, financing the twin transition, shoring up pension savings, strengthening alternatives to bank financing, and fostering convergence and inclusion. It highlights the progress made over the past decade, the challenges encountered, and the renewed impetus behind the CMU initiative. The paper proposes concrete steps to move forward, building on long-standing priorities supported by the ECB and the current policy debate on CMU. First, it suggests facilitating access to capital markets, via the creation of a new standard for a European savings and investment product. Second, it emphasises the importance of expanding capital markets across-borders which would be facilitated by improvements towards a more integrated supervisory ecosystem, an integrated trading and post-trading landscape leveraging on the potential benefits of digitalisation, and a more active securitisation market that does not compromise on financial stability. Third, the paper highlights the need to channel capital towards innovative and competitive firms by increasing opportunities for equity and venture capital financing. These actions should be complemented by longer-term initiatives, including continuing to address barriers stemming from the lack of harmonisation in insolvency, corporate and taxation regimes, designing a safe asset for Europe, completing the Banking Union, and promoting financial literacy and inclusion. JEL Classification: E61, F36, G18, G24, G51, O16 |
| Keywords: | capital markets union, convergence, financial integration, innovation financing, savings |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbops:2025369 |
| By: | Alessia Matano (AQR-IREA, University of Barcelona and Università di Roma “La Sapienza”); Paolo Naticchioni (Roma Tre University and IZA) |
| Abstract: | This paper investigates the relationship between China’s import competition and the innovation strategies of domestic firms. Using firm level data from Italy spanning 2005-2010 and employing IV fixed effects estimation techniques, we find that the impact of China’s import competition on innovation varies depending on the type of goods imported (intermediate vs. final). Specifically, imports of final goods boost both product and process innovation, while imports of intermediate goods reduce both. Additionally, we extend the analysis to consider the role of unions in moderating these responses. We find that, in unionized firms, imports' impact on innovation is mitigated, specifically to protect workers' employment prospects |
| Keywords: | China’s Import Competition, Final and Intermediate Goods, Product and Process Innovation, Unions, IV Fixed effects estimations. JEL classification: C33, L25, F14, F60, O30, J50 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:aqr:wpaper:202501 |
| By: | Ziruo Chen; Bifei Tian; W. Robert Reed (University of Canterbury); Zhengxin Wang |
| Abstract: | This paper empirically investigates the effects of bilateral investment treaties (BITs) on entrepreneurship through the lens of social network analysis (SNA), focusing on two key network characteristics: centrality and brokerage. We begin by developing a set of hypotheses regarding how a country’s position within the BIT network influences entrepreneurial activity. These hypotheses are tested using a panel dataset of 102 countries spanning 2006–2018. We also examine how these relationships are moderated by economic development and trade integration, and whether they vary across different types of entrepreneurship—including formal vs. informal, male vs. female, and domestic vs. international entrepreneurship. Our findings indicate that centrality has a positive effect on entrepreneurship, while brokerage exerts a negative influence. Moreover, both economic development and trade integration are found to weaken these effects. We also observe differential impacts of BIT network structure across the various entrepreneurship subgroups. |
| Keywords: | BITs network; Entrepreneurship; Centrality; Brokerage; Economic development; Trade integration |
| JEL: | F21 L26 F63 F15 |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cbt:econwp:25/06 |
| By: | World Bank |
| Keywords: | Social Development-Social Inclusion & Institutions Social Protections and Labor-Employment and Unemployment Poverty Reduction-Employment and Shared Growth Gender-Gender and Social Policy |
| Date: | 2023–10 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40537 |
| By: | Alloysius Joko PURWANTO (Economic Research Institute for ASEAN and East Asia (ERIA)); Ridwan Dewayanto RUSLI (Cologne University of Applied Sciences and University of Luxembourg); Hafis Pratama Rendra GRAHA (Bandung Institute of Technology); Sirichai KOONAPHAPDEELERT (Chiang Mai University); Reza Miftahul ULUM (University of Indonesia); Citra Endah Nur SETYAWATI (Economic Research Institute for ASEAN and East Asia (ERIA)); Nadiya PRANINDITA (Economic Research Institute for ASEAN and East Asia (ERIA)); Ryan Wiratama BHASKARA (Economic Research Institute for ASEAN and East Asia (ERIA)) |
| Abstract: | This study analyses the impact of the COVID-19 pandemic on a firm's total factor productivity (TFP) using Korean firm-level data from 2016 to 2021. The study reveals that the pandemic had a heterogeneous impact on firm TFP depending on the firm's operational characteristics, specifically whether the firm is a multinational enterprise (MNE) or a pure exporter (non-MNE). Whilst the pandemic had a more significant negative impact on the TFP of pure exporters than other firms, MNEs were less affected by the pandemic shock than pure exporters. This implies that whilst both firms were exposed to negative demand shocks on a global scale, MNEs were better equipped to handle supply-side uncertainties through international diversification. The study identifies certain characteristics of MNEs that helped buffer the pandemic shock, such as shedding labour, high R&D intensity, and more diversification via foreign subsidiaries. These characteristics enabled MNEs to mitigate the pandemic shock and even increase their TFP during the pandemic. |
| Keywords: | Global Pandemic; COVID-19; firm productivity; resource allocation; labour shedding; R&D; MNEs; international diversification; pure exporting firms |
| JEL: | D24 F23 F40 H12 I18 |
| Date: | 2025–03–04 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2024-38 |
| By: | Estianingtyas, Farah; Jofanka, Alinda Dwi; Sa’diyah, Shofiatus; Pandin, Maria Yovita R |
| Abstract: | The purpose of this study was to determine the effect of intelligence and financial literacy on the financial resilience of Micro, Small and Medium Enterprises in the Jambangan Culinary Tourism Center, Surabaya. This research was conducted on the type of business, namely in the culinary or trading business sector with a sample size of 30 micro, small and medium enterprises. In this study using a quantitative approach method. This study uses multiple linear regression techniques for hypothesis analysis. The results of the study show that intelligence and financial literacy have a high impact of 57, 1% on the financial resilience of Micro, Small and Medium Enterprises in the Jambangan Culinary Tourism Center, Surabaya. |
| Date: | 2023–06–15 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:6ej8d_v1 |