|
on Small Business Management |
|
Issue of 2025–05–19
seventeen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Alicia Robb; Adji Fatou Diagne |
| Abstract: | Understanding the dynamics of startup businesses' growth, exit, and survival is crucial for fostering entrepreneurship. Among the nearly 30 million registered businesses in the United States, fewer than six million have employees beyond the business owners. This research addresses the gap in understanding which companies transition to employer businesses and the mechanisms behind this process. Job creation remains a critical concern for policymakers, researchers, and advocacy groups. This study aims to illuminate the transition from non-employer businesses to employer businesses and explore job creation by new startups. Leveraging newly available microdata from the U.S. Census Bureau, we seek to gain deeper insights into firm survival, job creation by startups, and the transition from non-employer to employer status. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:25-26 |
| By: | Daniel Nauck (Magdeburg-Stendal University of Applied Science, Faculty of Economics); Martin Nowak (HAWK University of Applied Sciences and Arts, Hildesheim/Holzminden/Göttingen, Faculty of Management, Social Work, Construction); Michael Herzog (Magdeburg-Stendal University of Applied Sciences, Faculty of Economics) |
| Abstract: | Scholars and policymakers have discussed the emphasis on entrepreneurial growth, especially the importance of cooperation with local and regional stakeholders (e.g. local politics, social or innovation networks, or collaboration with regional universities) to gain inner-city economics resilience and to attract owner-managed retail (OMR) and support entrepreneurial SMEs. We aim to contribute to the discussion by adding an entrepreneurial learning perspective, using insights from an exploratory case study research project, which examined efforts made by entrepreneurial retailers in terms of digitalization during the COVID-19 pandemic through the support of their social network. In doing so, we are introducing and discussing the use of visual data collection within an ego-centered qualitative network analysis (ENA) framework, introducing the method in an entrepreneurship and business management research context. |
| Keywords: | Entrepreneurship, Digital business, Retail, Ego-centred network analysis |
| JEL: | I25 L81 O00 R11 |
| Date: | 2024–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:aoh:conpro:2024:i:5:p:220-228 |
| By: | Chea, Vybol; Chautagnat, Jean Luc; Sophat, Phon |
| Abstract: | Higher education plays an important role in training human resources with real competencies, knowledge, and skills. In this context, it’s improving the quality of higher education is a necessary and urgent thing to do, as Cambodia has a vision of becoming a high-middle-income country by 2030. Innovation and Entrepreneurship refers to an individual’s ability to turn ideas into action. It includes creativity, innovation, and risk-taking, as well as the ability to plan and manage projects in order to achieve objectives. Innovation and Entrepreneurship refers to an individual’s ability to turn ideas into action. It includes creativity, innovation, and risk-taking, as well as the ability to plan and manage projects in order to achieve objectives. This helps everyone in daily life at home and in society, increases employee awareness of the context of their work and their ability to take advantage of opportunities, and forms the basis for entrepreneurs starting a business or social enterprise. An international phenomenon, entrepreneurship has a favorable impact on economic growth worldwide through the birth of fresh and creative business start-ups. Because of their beneficial effects on the economy, these new small firms help create jobs and persuade lawmakers to acknowledge and encourage entrepreneurial start-ups. Cambodia is concerned with promoting entrepreneurship to all people in order to develop successful entrepreneurs. Several entrepreneurship programs have been developed by the government and higher education institutions (HEIs) to support these entrepreneurship movements, but very little is known about the effectiveness of these entrepreneurship programs’ implementation. Therefore, this study has been evaluated to what extent the effectiveness of entrepreneurship subjects in Cambodia which has been selected as the target for higher education levels in the Siem Reap, Kampong Cham and Battambang province. This study uses case study methods and was carried out in two stages. The first stage is a descriptive and evaluative phase. Here, the study focused on the mapping of existing learning and institutional support within HEIs. To gain a better understanding of learning experiences that prepare students to become successful entrepreneurs, data exploration on the learning process within HEIs is assessed from internal viewpoints. The explanation phase is stage two. During this phase, the concepts, categories, and propositions derived from the phenomena are discovered and developed in order to provide a theory and platform for entrepreneurial learning. |
| Keywords: | Innovation, Education |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:316321 |
| By: | Komatsu, Sho; Nguyen-Phung, Hang Thu |
| Abstract: | As entrepreneurial dynamism is widely recognized as a driver of innovation and economic growth, it is important to understand the determinants of entrepreneurship. However, there is little literature examining the role of ICT and its potential mechanisms of individual entrepreneurship in rural China. This study investigates the effect of ICT utilization on entrepreneurship and its potential mechanisms by using China Family Panel Studies (CFPS) data from 2014 to 2020. We identify Internet use via computers, Internet use via mobile devices, and Internet use by computer or mobile devices as proxy variables for ICT utilization. Our empirical results indicate that ICT utilization has a significant and positive effect on entrepreneurship in rural China. The results remain robust after a series of robustness tests. This study also finds that the effect is heterogeneous by gender, generation, educational background, and regions. Furthermore, mechanism analysis shows that the Internet can promote entrepreneurship by facilitating access to information and the formation of social capital. The above finding in rural China will have important implications for economic development and poverty reduction in other developing countries. |
| Keywords: | information communication technology, Internet use, entrepreneurship, rural China |
| JEL: | L26 O18 O33 R11 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:agi:wpaper:02000184 |
| By: | Nina Bo\v{c}kov\'a; Barbora Voln\'a; Mirko Dohnal |
| Abstract: | This paper addresses gender-related aspects of innovation processes in Small and Medium Enterprises (SMEs). Classical analytical and statistical approaches often struggle with the high complexity and insufficient data typical of gender-related innovation studies. We propose a trend-based modelling framework that requires minimal information and uses non-numerical quantifiers: increasing, constant, and decreasing. This approach enables the analysis of ten-dimensional models including variables such as Gender, Product Innovation, Process Innovation, and High-Risk Tolerance. Using trend-based artificial intelligence methods, we identify 13 distinct scenarios and all possible transitions between them. This allows for the evaluation of queries like: Can exports increase while gender parameters remain constant? Two versions of the GASI trend model are presented: the original and an expert-modified version addressing critiques related to scenario transitions. The final model confirms stability and supports the assumption that "no tree grows to heaven." Trend-based modelling offers a practical, interpretable alternative for complex, data-scarce systems. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.08493 |
| By: | Pardy, Martina |
| Abstract: | his article examines the extent to which the presence of multinational enterprises (MNEs) influences the concentration of innovation among patenting firms within US states from 1976 to 2010. Merging patent and regional socioeconomic data, this study explores the effects within 50 US states over more than three decades using Ordinary-Least-Square and Instrumental Variable estimations. It shows that MNEs significantly contribute to the concentration of patenting activity, an effect predominantly driven by domestic-owned MNEs. The impact differs across space: states with a higher share of MNEs experience a sharper increase in patenting concentration. Crucially, it is the non-MNE firms that feel the squeeze the most, with those in the middle of the patenting hierarchy producing fewer patents when domestic MNEs ramp up their activity. This suggests that economic globalisation, while enhancing innovation opportunities for some, reinforces competitive pressures and barriers for others. These findings offer a new perspective on the forces shaping regional innovation dynamics, highlighting the role of MNEs in both amplifying innovation gains and exacerbating disparities in knowledge production. |
| Keywords: | globalisation; multinational enterprises; innovation; concentration; regional development |
| JEL: | J1 |
| Date: | 2025–07–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127983 |
| By: | Giulia Canzian; Elena Crivellaro; Tomaso Duso; Antonella Rita Ferrara; Alessandro Sasso; Stefano Verzillo |
| Abstract: | The Covid-19 pandemic caused a global economic crisis, leading governments to provide substantial State Aid to support firms. This paper examines the effectiveness of Covid-related financial support in Spain and Italy, focusing on its impact on firm recovery. Using a difference-in-differences (DiD) approach combined with propensity score weighting, it compares outcomes of similar firms receiving aid to those without. The results show significant benefits for micro-firms, including mitigated turnover declines and increased investments in both tangible and intangible assets. The findings highlight the critical role of government support in business survival and recovery, especially for SMEs, during the pandemic. |
| Keywords: | state aid, aid effectiveness, temporary framework, Covid, firm growth, investment, difference-in-differences. |
| JEL: | D04 D22 L25 L52 P43 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11835 |
| By: | Hunt, Jennifer; Cockburn, Iain; Bessen, James |
| Abstract: | Using our own data on artificial intelligence publications merged with Burning Glass vacancy data for 2007-2019, we investigate whether online vacancies for jobs requiring AI skills grow more slowly in US locations farther from pre-2007 AI innovation hotspots. We find that a commuting zone which is an additional 200km (125 miles) from the closest AI hotspot has 17% lower growth in AI jobs' share of vacancies. This is driven by distance from AI papers rather than AI patents. Distance reduces growth in AI research jobs as well as in jobs adapting AI to new industries, as evidenced by strong effects for computer and mathematical researchers, developers of software applications, and the finance and insurance industry. 20% of the effect is explained by the presence of state borders between some commuting zones and their closest hotspot. This could reflect state borders impeding migration and thus flows of tacit knowledge. Distance does not capture difficulty of in-person or remote collaboration nor knowledge and personnel flows within multi-establishment firms hiring in computer occupations. |
| Keywords: | technological change; economic geography; growth; technology adoption and diffusion |
| JEL: | O33 R12 |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126840 |
| By: | Marzanna Poniatowicz (Faculty of Economics and Finance, University of Bialystok); Agnieszka Piekutowska (Faculty of Economics and Finance, University of Bialystok) |
| Abstract: | Purpose The dynamic development of the alternative finance sector is a characteristic phenomenon of contemporary times. In the literature, the key reasons identified for this phenomenon are: i. Technological advancement: The development of digital technologies, including the Internet, blockchain, and artificial intelligence, has enabled the creation of innovative financial platforms and services that are more accessible and efficient compared to traditional financial institutions (Taherdoost, 2023; Lekhi, 2024). ii. Financial exclusion issues: Many small and medium-sized enterprises, startups, and individuals have limited access to traditional sources of financing, such as bank loans, due to stringent credit requirements. This exclusion manifests as a lack of access to traditional banking services, high costs and demands of traditional financial institutions, lack of flexibility of traditional financial services, limited geographical availability of specific financial services, low financial awareness, and a lack of trust in traditional financial institutions. Alternative finance, through technological innovations and flexible business models, offers solutions that can reduce the problem of financial exclusion and provide access to essential financial services for entities previously excluded from the traditional financial system (Carbó et al., 2005). iii. The search for higher returns: Investors are looking for new investment opportunities that offer higher returns compared to traditional bank deposits or bonds. Alternative forms of investing, such as crowdfunding, attract investors due to potentially higher profits (Freedman and Nutting, 2015). iv. Changes in consumer behavior in the market: The younger generation, known as Millennials and Generation Z, prefers convenient, fast, and online financial services. Young people are more open to using modern financial technologies and are less attached to traditional banks (CAsfera.pl, 2022). v. Changing regulations and government policies aimed at increasing competition in the financial sector: Many governments and regulatory bodies are introducing regulations that support the development of alternative finance. These include not only regulations regarding crowdfunding but also cryptocurrencies and open banking, which promote innovation and competition in the financial sector (World Bank and Cambridge Centre for Alternative Finance, 2019). The aforementioned conditions contribute to the rapid development of the alternative finance sector, which is becoming an increasingly important part of the global financial system. In this context, the dynamic growth of crowdfunding (CF) as a community financing instrument is also observed. CF appears to be a kind of phenomenon. The term was first used in 2006 by the American blogger M. Sullivan, founder of Fundavlog. One of the most comprehensive definitions of CF is proposed by Mollick (2014). According to him, CF “refers to the efforts by entrepreneurial individuals and groups - cultural, social, and for-profit - to fund their ventures by drawing on relatively small contributions from a relatively large number of individuals using the internet, without standard financial intermediaries” (Mollick, 2014). The research objective set by the authors is to determine the specifics of CF as an alternative financing tool in the Polish context. The authors focus on ten key characteristics of the analyzed instrument, including (1) community financing, (2) accessibility for small and medium-sized enterprises and startups, (3) lower entry barriers compared to traditional financial services, (4) direct interaction with investors, (5) diversity of financing models (e.g., donation-based CF, reward-based CF, royalty-based CF, equity CF, debt CF, etc.), (6) market testing, (7) marketing and promotion, (8) investment risk, (9) administrative support and legal regulations, and (10) community and engagement. Design/methodology/approach The study employed the method of analyzing literature related to the issues of alternative finance and CF, as well as the analysis of legal acts regulating CF for instance Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European crowdfunding service providers for business) and the national level (the Act of 7 July 2022 on crowdfunding for business ventures and assistance to borrowers). Additionally, an analysis was conducted on the functioning of selected crowdfunding platforms and entities authorized to provide crowdfunding services, as well as an analysis of examples of investments financed using this instrument. The article also utilized statistical data from the European Securities and Markets Authority database. Findings The conducted research confirmed the research hypothesis, which states that the development of CF as a financial instrument in Poland is driven by technological advancements that enable the creation of innovative financial platforms, as well as by the ability of the instrument to offer greater financial flexibility (compared to traditional financing instruments), faster access to capital, and the potential to build communities around financed projects. It was shown that in Poland, compared to other EU member states (such as France, Italy, Spain, the Netherlands, and even Lithuania), CF is at an early stage of development (European Securities and Markets Authority Database, 2024). However, it has significant growth potential due to the aforementioned attributes. These features make it not only an attractive instrument for entities that face difficulties in obtaining traditional financing but also contribute to reducing financial exclusion in Poland. It was demonstrated that CF is gaining importance primarily as an alternative source of financing for small and medium-sized enterprises, startups, and various social and cultural projects. Originality/value The legal regulations regarding CF in Poland are relatively new, and analyses of the functioning of crowdfunding platforms and investments financed through this source of funding are limited. This analysis fills that gap. The unique economic context of Poland, with its specific economic and social conditions differing from those of other EU countries, is significant in this regard. The analysis of CF in Poland takes into account the specific conditions of the country, such as the level of digitization of society, trust in new technologies, the level of financial exclusion, and the specific financial needs of small and medium-sized enterprises. Moreover, Poland is one of the fastest growing fintech markets in Europe. Analyzing CF in this context allows us to understand how innovative financial technologies impact the development of alternative sources of financing in the country. Poland is at the stage of developing various types of crowdfunding platforms, including donation-based, equity-based, and reward-based platforms. Examining the functioning of these platforms provides valuable information about their effectiveness and attractiveness to different user groups. It is also worth noting that Poland has a strong community culture (e.g., "Solidarity" as a social movement in the 1980s, which played a key role in overthrowing communism in Poland and is one of the most well-known examples of a strong community and solidarity culture in Europe), which can promote the development of CF. Importantly, our research also considers the aspect of financial education, which is crucial for understanding and accepting alternative forms of financing by society. |
| Keywords: | Crowdfunding, Alternative financing, Investment |
| JEL: | G11 G23 G28 |
| Date: | 2024–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:aoh:conpro:2024:i:5:p:248-250 |
| 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. |
| JEL: | E22 L11 O31 O33 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33588 |
| By: | Luca Fontanelli (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, SSSUP - Scuola Universitaria Superiore Sant'Anna = Sant'Anna School of Advanced Studies [Pisa]); Flavio Calvino (OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development); Chiara Criscuolo; Lionel Nesta (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur); Elena Verdolini (CMCC - Centro Euro-Mediterraneo per i Cambiamenti Climatici [Bologna]) |
| Abstract: | We leverage a uniquely comprehensive combination of data sources to explore the enabling role of human capital in fostering the adoption of predictive AI systems in French firms. Using a causal estimation approach, we show that ICT engineers play a key role for AI adoption by firms. Our estimates indicate that raising the current average share of ICT engineers in firms not using AI (1.66%) to the level of AI users (6.7%) would increase their probability to adopt AI by 0.81 percentage pointsequivalent to an 8.43 percent growth. However, this would imply substantial investments to fill the existing gap in ICT human capital, amounting to around 450.000 additional ICT engineers. We also explore potential mechanisms, showing that the relevance of ICT engineers for predictive AI is driven by the innovative nature of its use, make-vs-buy choices, large availability of data, ICT and R&D intensity. |
| Keywords: | artificial intelligence, human capital, technological diffusion |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05029748 |
| By: | Elena Shkrekova (Ss. Cyril and Methodius University in Skopje, Faculty of Economics - Skopje); Aleksandar Naumoski (Ss. Cyril and Methodius University in Skopje, Faculty of Economics - Skopje) |
| Abstract: | This study explores the determinants of capital structure within industrial firms in North Macedonia, focusing on a decade-long panel of companies listed on the Macedonian Stock Exchange from 2012 to 2022. Using panel regression analysis, the research examines the impact of key factors—firm size, profitability, asset tangibility, growth, risk, and taxation—on the leverage decisions of these firms. The results reveal that firm size and asset tangibility are positively associated with leverage, indicating these companies’ reliance on debt, especially when supported by substantial physical assets. In contrast, profitability demonstrates a negative relationship with leverage, consistent with the Pecking Order Theory, suggesting that profitable firms in this emerging market prefer internal financing. Growth, measured through sales, shows a positive correlation with leverage, though the impact varies with growth metrics. Overall, this study highlights the unique capital structure dynamics in a transitioning economy and provides valuable insights for financial managers operating in similar markets. |
| Keywords: | Capital structure, Leverage, Theories of capital structure, Trade-off theory, Pecking order theory |
| JEL: | G21 G30 G32 G33 |
| Date: | 2024–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:aoh:conpro:2024:i:5:p:251-263 |
| By: | Rodríguez-Pose, Andrés |
| Abstract: | This article examines the role of Swedish higher education institutions (HEIs) in economic development, focusing on the impact of their research capacities on local economic activity. Globally, HEIs are increasingly prioritising research, frequently at the expense of education and local economic engagement, as a means to climb the university ranking ladder. Sweden has been no exception. Our findings indicate that research intensity at Swedish HEIs does not correlate with higher local income. Rather, the opposite is the case: more emphasis on top-end research seems to undermine local income. We explore human capital and innovation as possible mechanisms for the limited local economic influence of Swedish HEIs. The results reveal that HEIs do not significantly improve local human capital. Moreover, despite Swedish HEIs holding intellectual property rights to foster innovation, the actual economic translation of this knowledge faces considerable hurdles, including a misalignment with industry needs and limited local business collaboration. |
| Keywords: | higher education institutions; Sweden; research capacity; innovation; human capital |
| JEL: | I23 I20 R11 |
| Date: | 2025–03–07 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127188 |
| By: | Nada Znady (FSJES - Faculté des Sciences Juridiques, Economique et Sociales de Mohammedia - UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)); Mohamed Bazi (Professeur d’enseignement supérieur à la faculté des sciences juridiques, économiques, et sociales de Mohammedia) |
| Abstract: | In recent years, the world has witnessed significant progress and rapid development in the field of digital technology, leading to the emergence of digital entrepreneurship and the creation of new digital enterprises. Artificial intelligence (AI), as a form of technology, is an ever-evolving domain that continues to transform various sectors, including business. Many companies now rely on AI to streamline tasks, identify opportunities more efficiently, and enhance performance. Indeed, the major advantages of AI include increased productivity and cost optimization, with its impact being particularly pronounced in areas such as e-commerce and healthcare.However, the study reveals persistent challenges, particularly those related to costs, required skills, and ethical concerns. The methodology involves analyzing existing literature and previously studied applications of AI in digital entrepreneurship. In this context, our study aims, from a theoretical perspective, to examine the key elements of AI's contribution to digital entrepreneurship, focusing on the challenges entrepreneurs face during their digital transformation journey. |
| Abstract: | Ces dernières années, le monde a été témoin de progrès et de développement rapide dans le domaine de la technologie numérique, conduisant à une émergence de l'entrepreneuriat numérique et à la création de nouvelles entreprises digitales. L'intelligence artificielle (IA), en tant que forme de technologie, est un domaine en constante évolution qui continue de transformer divers domaines y compris ceux des entreprises. De nombreuses entreprises s'appuient sur l'intelligence artificielle pour simplifier les tâches, identifier plus facilement les opportunités et améliorer la performance. En effet, les atouts majeurs de l'IA incluent une augmentation de la productivité et une optimisation des coûts, son influence est particulièrement marquée dans des domaines comme le e-commerce et la santé.Cependant, l'étude révèle des défis persistants, notammentliés aux coûts, aux compétences requises et aux préoccupations éthiques. La méthodologie repose sur une analyse de la littérature existante et les applications de l'IA dans l'entrepreneuriat digital déjà étudiées. À cet égard, notre étude vise, sur le plan théorique, à étudier les principaux éléments de la contribution de l'intelligence artificielle à l'entrepreneuriat digital, axé sur les défis auxquels les entrepreneurs sont confrontés au cours de leur parcours de transformation numérique. |
| Keywords: | Artificial intelligence, digital entrepreneurship, digitization, technology, machine learning., L’intelligence artificielle (IA), entrepreneuriat digital, numérisation, technologie, machine Learning. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05017909 |
| By: | John Ham; Brian Quistorff; Bruce A. Weinberg |
| Abstract: | We draw on a recombinant view of innovation, where being in a new location and/or multiple locations leads to exposure to novel combinations of ideas that increase the creativity of top scientists. Using a rich, unique dataset we helped assemble, we estimate the empirical relationship between being in a new location and/or multiple locations and the expected interval before an eventual Nobel laureate (ENL) commences their prize-winning work. We find that being in a new location and in multiple locations are substantially and significantly associated with a shorter expected interval before ENLs commence their prize-winning work. |
| JEL: | C41 O31 O38 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33579 |
| By: | Carolina Castaldi; Milad Abbasiharofteh; Sergio Petralia |
| Abstract: | The sustainability transition is high on the European agenda, with an emerging understanding that focusing on green technologies is not enough to achieve disruptive sustainability. An overall green transformation of current systems of production and consumption also requires market formation processes whereby green markets become viable economic opportunities for regions to specialize in. In this study, we draw on insights from evolutionary economic geography and geography of transitions to understand how regions develop green market specializations. To do so, we investigate two key sets of factors. First, we consider the evolutionary capability development process whereby new specializations emerge from existing related regional capabilities, in a path-dependent way. Second, we account for green public procurement initiatives to capture path-creation efforts in the form of deliberate regional policy directed towards green market formation. Our empirical analysis focuses on European regions in the period 2000-2020. We employ original trademark-based metrics to capture regional specializations in green markets and combine them with patent data to construct relatedness linkages between technologies and markets. Our results reveal that only a few regions have been able to develop specializations in green markets. We find that both prior capabilities in related technological domains and markets are positively associated with the emergence of these regional specializations. In addition, we also find that green public procurement is positively associated with the emergence of regional green market specializations. Our findings bear relevance for policy and research alike. |
| Keywords: | sustainability; regions; green markets; relatedness; public procurement; trademarks; patents |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2512 |
| By: | Addis Gedefaw Birhanu (EM - EMLyon Business School) |
| Abstract: | Emerging market multinational enterprises (EMNEs) are vital in achieving the United Nations' Sustainable Development Goals (SDGs) in developing economies that often lack alternative investment avenues. By leveraging an abundant workforce that is largely unskilled and low-skilled, EMNEs not only provide substantial employment opportunities but also contribute to the eradication of poverty (SDG 1). EMNEs' ambitions to expand into adjacent markets offer SMEs valuable opportunities to integrate into regional and global value chains. This in turn spurs economic growth (SDG 8) and reduces inequalities (SDG 10). The access of EMNEs to leapfrogging and relatable technologies mitigates infrastructural bottlenecks and cultivates innovation (SDG 9) in these economies. For EMNEs to successfully deliver on these goals, key stakeholders, especially NGOs and governments, must take an active role in persuading, enabling, and incentivizing these enterprises. |
| Keywords: | Immigrant University Entrepreneurship Startup Venture capital |
| Date: | 2025–03–20 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05004689 |