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on Small Business Management |
| By: | Nobuya FUKUGAWA |
| Abstract: | Universities, embedded within regional innovation systems, promote entrepreneurship through intermediary functions, including resource provision, consulting, and networking. Drawing on perspectives from entrepreneurial ecosystems and innovation intermediation, this study examines how the effectiveness of these university functions varies according to regional innovation contexts and institutional types. The analysis integrates comprehensive panel data from 1, 027 universities (2019–2023) with detailed patent and basic research funding databases. Fixed-effects negative binomial regression models with lagged independent variables are employed to control for unobserved time-invariant heterogeneity and to mitigate simultaneity bias. The results show that basic research capacity is consistently and positively associated with startup formation, highlighting its foundational role in academic entrepreneurship. However, the effects of other support functions are highly context-dependent: human resource and knowledge service linkages promote startup activity only when universities are embedded within innovation agglomerations. Investor linkages show no significant overall effect but become positively associated with startup formation in peripheral regions where access to capital is limited. These findings underscore the need for differentiated, ecosystem-sensitive intermediation strategies and highlight the importance of aligning university support mechanisms with the structure and maturity of surrounding innovation environments. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25044 |
| By: | Meier, Andre Klaus; Kock, Alexander |
| Abstract: | Firms increasingly apply agile approaches in their development processes, and therefore researchers started investigating how agility affects innovation performance. However, previous research on agility often only considers software development or approaches the concept only from an outcome perspective (i.e. increased adaptability to changes) instead of from a capability perspective (i.e. how to organise for adaptability to be successful). Consequently, research failed to investigate how the organisation of agile research and development (R&D) units in physical new product development (NPD) affects innovation performance. We apply structural equation modelling on 162 R&D units in a large industrial firm and analyse the interplay of agile R&D units' organisation, the resulting agility, front‐end success and NPD success. Moreover, we consider contingency factors of environmental turbulence. The study extends research on agility's neglected capability perspective in innovation management, thus providing a better understanding of agility's relationship with innovation performance and showing managers how to increase their unit's NPD success. |
| Date: | 2025–05–12 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:154762 |
| By: | Bachmann, Federico; Kataishi, Rodrigo |
| Abstract: | This study conducts a comprehensive meta-regression analysis to examine the relationship between firm size and innovative performance, utilizing 95 empirical studies published between 1993 and 2017. By incorporating 655 econometric estimations from these studies, we aim to identify key factors contributing to the heterogeneity observed in the empirical literature. Our findings confirm a positive average effect of firm size on innovative performance, reinforcing the theoretical expectation that larger firms tend to be more innovative due to economies of scale and greater resource availability. However, this relationship is moderated by various contextual and methodological factors that affect results, such as the measures used for firm size and innovation, the type of innovation considered (product or process), and the geographic context (developed or developing countries). This study contributes to the literature by presenting one of the most comprehensive meta-analyses on this topic to date, introducing new moderator variables, and offering deeper insights into the sources of heterogeneity. The results not only reinforce the most common hypotheses on the size-innovation relationship but also provide a nuanced understanding of the variations in empirical results. By highlighting the importance of measurement choices and firm characteristics in understanding the firm size-innovation nexus, this study offers valuable guidance for future research, enabling a more refined approach to investigating this complex relationship. |
| Keywords: | Tamaño de la Empresa; Innovación; Análisis de Regresión; Investigación y Desarrollo; 1993-2017; |
| Date: | 2025–05–09 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4327 |
| By: | Riku Watanabe |
| Abstract: | This study introduces two heterogeneous industries into an endogenous growth model in a circular economy. In our model, there are two types of industries, brown industries using exhaustible resources for production, and green industries using recycled goods which are reproduced from the used final good by a recycling firm. Each industry switches the state as a result of R&D activities for innovation and greening. Innovation improves the level of productivity and occurs in both industries. In contrast, only firms in brown industries invest in R&D activities for greening, which transfers the brown industries toward the green industries. This paper examines the effect of recycling and the share of green industries on the growth rate. We show that an increase in the recycling rate does not have a negative effect on the economy, and improves the welfare of households. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:dpr:wpaper:1286 |
| By: | Katrin Hussinger (DEM, Université du Luxembourg); Lorenzo Palladini (Stockholm School of Economics, SE) |
| Abstract: | China’s special economic zones (SEZs) have been established to foster business growth and innovation by improving the institutional context of specific sub-regional areas. We examine the effect of SEZs on the contribution of research and development (R&D) to the market value of firms located in these areas. The market value reflects investors’ expectations of future returns to R&D, providing crucial information for strategic investment decisions. Larger R&D contributions to the market value create stronger incentives for firms to invest in innovation. Empirical results suggest that the contribution of R&D to the market value increases through the SEZs program, particularly for R&D intensive firms. This suggests that regional policies, while increasing incentives to innovate, may widen the gap between less and more R&D intensive firms, potentially impacting competition and long-term growth. |
| Keywords: | Special economic zones (SEZs); China; Market value; R&D; Institutional development; Innovation incentives. |
| JEL: | O32 R58 O25 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:25-10 |
| By: | Walenta, Danilo C.; Glauben, Adrian; Wahl, Nihal; Vetter, Oliver A.; Buxmann, Peter |
| Abstract: | The collaborative approach to innovation is crucial for sharing ideas, solving problems, and implementing new ways of working that rely on human creativity and communication. As generative AI (genAI) becomes increasingly integrated into work environments, understanding its role and implications in the innovation process becomes essential. The literature suggests that genAI can support creative processes by generating business ideas, but no research has examined in detail how genAI affects collaboration in innovation. Remarkably, rather than creating information overload, genAI promotes positive team dynamics and enhances the key elements of collaboration: Shared understanding, organization/structuring, and task execution. This paper uses a diary study to investigate the influence of genAI on creative processes, communication, and decision-making in teams and provides insights into the role of genAI in the innovation process. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:154894 |
| By: | Chowdhury, Emon |
| Abstract: | This paper analyzes the impact of economic, socio-cultural, and institutional factors on entrepreneurial success in Bangladesh. Using primary data from a structured survey with judgmental sampling, factor analysis and regression models are used to examine these relationships. The findings show that a strong economic climate fosters entrepreneurship, but challenges such as limited access to financing and inadequate infrastructure hinder success. Socio-cultural factors, like traditional family structures and gender roles, significantly restrict women's participation. Institutional support, including policies and organizations, is crucial for success. The study highlights the need for targeted interventions to promote inclusive entrepreneurship. Policymakers should improve access to financing, reduce interest rates, and invest in infrastructure. Promoting gender equality and supportive policies is essential to enhance women's participation and guide entrepreneurs. Creating a conducive entrepreneurial ecosystem in Bangladesh can drive economic growth, reduce poverty, and empower marginalized groups, especially women. |
| Keywords: | Entrepreneurship; Bangladesh; economic factors; socio-cultural factors; institutional factors; mindset |
| JEL: | G2 L1 L6 M1 |
| Date: | 2024–10–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124873 |
| By: | Katrin Hussinger (DEM, Université du Luxembourg); Issah Wunnam (University of Leicester, UK) |
| Abstract: | We investigate whether family ownership is associated with a preference for patents or trade secrets. Using a sample of S&P 500 firms, we show that family ownership is negatively associated with patenting and positively associated with the usage of trade secrets. We further show that both relationships are moderated by firm performance below the aspiration level, i.e. the performance benchmark level that an organization sets. These results can be explained with a mixed gambles behavioral agency framework. When family firms perform below their aspiration level, prospective financial gains become relatively more important as compared to current socio emotional wealth so that patents become more and trade secrets less attractive. |
| Keywords: | Family firms, patents, trade secrets, mixed gambles, aspiration gap. |
| JEL: | O34 O32 G32 M14 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:25-11 |
| By: | Sergio Palomeque |
| Abstract: | This paper examines the processes of generating new technical knowledge, aim- ing to contribute to an understanding of how less developed economies can diversify their knowledge base to support economic development. We study the structure of relatedness of required knowledge between technologies at a global level, conceived as a network where technologies are connected according to the intensity with which they co-occur in the inventors’ portfolios. Based on this, topological characteristics of the network are studied using node-level metrics to propose diversification strate- gies that alleviate the lock-in effects suffered by less developed economies. The paper contributes to the literature by proposing two indicators that can be used to analyse relevant dimensions of the innovation system of cities in less developed regions. One of the indicators enables us to compare the levels of stability of the technologies that comprise the knowledge base of the cities. The second provides a measure of the level of alternatives available to the city for each diversification decision. The results, based on the analysis of Latin American cities, show that the stability of the technologies present in a city, as well as the alternatives available to choose its diversification path, are relevant to designing diversification strategies that could contribute to overcoming the constraints generated by the characteristics of the knowledge base of those cities. |
| Keywords: | relatedness; innovation systems; patents; cities; Latin America; Evolu- tionary Economic Geography |
| JEL: | B52 D85 O31 O32 O34 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2515 |
| By: | Laura Bisio; Valeria Cirillo; Matteo Lucchese; Andrea Mina; Stefania Scrofani |
| Abstract: | This study investigates the impact of new digital technologies on the resilience of firms to external shocks. Using rare comprehensive data on both the adoption of single and multiple new digital technologies, we employ a Difference-in-Differences methodology with propensity score matching to evaluate how digitalization influenced firms' ability to withstand the COVID-19 crisis. We isolate the effects of adopting 1) a single technology, 2) multiple technologies (the breadth of adoption), and 3) technologies that are complementary to one another. The findings provide novel insights into how firms can shape their investments in new digital technologies to increase the benefits of digitalization, and enhance their ability to navigate future crises. |
| Keywords: | digital technologies; resilience; technological complementarities |
| Date: | 2025–05–26 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2025/21 |
| By: | Ferrando, Annalisa; Mulier, Klaas; Ongena, Steven; Delis, Manthos |
| Abstract: | Monetary policy can have contrasting effects on economic inequality via distinct channels. We examine the effect working via the credit channel, whereby monetary policy induces heterogeneous access to credit for business owners based on their wealth. Using unique data on business loan applications from small firms, we find that monetary expansions increase the bank’s likelihood to approve loan applications, particularly so for low-wealth entrepreneurs, translating to higher future income and wealth. Survey data from 19 euro area countries on loan applications by SMEs confirms these findings, and shows that the effect transmits especially via weakly capitalized and less liquid banks. JEL Classification: E51, E52, D63 |
| Keywords: | bank credit, business loans, entrepreneurs’ private wealth, monetary policy |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253058 |
| By: | Casas, Pablo; Christou, Tryfonas; Ferreira, Valeria; García Rodríguez, Abián; Lazarou, Nicholas Joseph; Pedauga, Luis Enrique; Rueda Cantuche, José Manuel; Bernard, Hannah; Volpe, Roberto; Neicu, Daniel; Salotti, Simone |
| Abstract: | This paper presents a macroeconomic evaluation of the impact of the Horizon Europe Framework Programme for Research and Innovation, for which projects have been signed between 2021 and 1 July 2024, using the general equilibrium models RHOMOLO (Regional Holistic Model) and FIDELIO (Fully Interregional Dynamic Econometric Long-term Input-Output). The RHOMOLO model simulations suggest that the GDP gains in 2024 for the European Union would be up to 0.10% compared to GDP in 2020. The GDP gains are also expected to be significant in the medium term, with a cumulative GDP multiplier of more than 4, ten years after the end of the injection. The impact then gradually diminishes due to the obsolescence of the new knowledge and innovations generated by the policy intervention. The model results also show significant interregional spillovers in some, but not all, countries of the European Union. The FIDELIO model is used to disaggregate the impact of Horizon Europe funds on EU R&D expenditure and by sector, complementing the analysis of the RHOMOLO model. The results indicate that the positive effects on innovation gains, with business investment contributing to substantial GDP gains after the four-year intervention period, are mainly directed towards business R&D in manufacturing. Within manufacturing, the most important sub-sectors are the manufacture of machinery and equipment; computer, electronic and optical products; motor vehicles, trailers and semi-trailers; and fabricated metal products. |
| Keywords: | Innovation policy, regional growth, industry impact, general equilibrium. |
| JEL: | C68 O30 R13 |
| Date: | 2025–05–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124687 |
| By: | Marques Anabela (European Commission - JRC); Lelli Francesco; Molica Francesco (European Commission - JRC) |
| Abstract: | This paper explores the spatial patterns associated with large-scale relocation events in the European Union. It examines both relocation within national borders and delocalisation across countries, using data from 2002 to 2023 at the NUTS2 level. The study draws on Eurofoundâs European Restructuring Monitor (ERM) dataset and applies Probit and Poisson regression models to identify key regional characteristics linked to these events. The findings suggest that cost efficiency plays a central role in driving both types of relocation. Regions with greater access to Cohesion Policy funds tend to experience fewer internal relocations, while a higher availability of State aid is associated with a lower incidence of cross-border delocalisations. The analysis also indicates that manufacturing sectors - particularly electronics, automotive, and computer industries - are most frequently affected, likely due to the nature of their production processes. Moreover, such relocation dynamics appear more dominant in more developed regions, possibly due to the cost advantages offered by less developed regions. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:termod:202503 |
| By: | Diego A. Comin; Danial Lashkari; Martí Mestieri |
| Abstract: | We document the structural transformation of innovation using historical patent data since the 1850s, along with R&D expenditure and TFP growth for the post-war period. Over time, innovation has shifted from agricultural sectors to manufacturing, and, more recently, to services. We develop and quantify a multi-sector semi-endogenous growth model of structural change in innovation and production, incorporating the classical demand-pull and technology-push drivers of innovation. Sectors differ in their innovation technologies, and the extent to which they benefit from knowledge spillovers (technology-push). Nonhomothetic demand shifts the market shares toward income-elastic sectors along the growth process (demand-pull). A calibrated version of our model replicates the structural transformations of innovation and production observed in the US data. Using the model, we evaluate the future impact of Baumol’s disease on aggregate productivity and find it to be minimal. Our results suggest that aggregate productivity growth may recover in the coming decades as the service sector becomes increasingly innovation-driven. |
| JEL: | E02 O1 O4 O5 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33855 |
| By: | Schuhmacher, Monika C. |
| Abstract: | This DFG project addressed the research question of how specific decision errors in innovation endeavors occur and subsequently influence individual and organizational behavior. The phenomena under scrutiny comprise innovation failure and missing out on an innovation opportunity. While the former results from pursuing an inherently bad project, the latter results from not pursuing an inherently good project further. Focusing on these distinct decision errors, particularly the latter, three empirical subprojects fill relevant research gaps and help to formulate implications for scholars and practitioners. |
| Keywords: | Decision Errors |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esrepo:318550 |
| By: | Coelli, Federica (Dept. of Economics, University of Zurich); Pelzl, Paul (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | Using oil and gas shocks as an exogenous source of business cycles at the U.S. commuting zone level, we provide novel evidence that local booms increase local patenting, especially in non-metropolitan areas. This reflects agglomeration economies that make incumbent inventors more productive. In contrast to total patenting, innovation in oil and gas – the sector closest to the boom – is countercyclical, consistent with higher opportunity costs of innovation in a booming industry. Our findings shed new light on the spatial dimension of innovation, inform recent debates on place-based industrial policy, and help to reconcile mixed evidence on the cyclicality of innovation. |
| Keywords: | Innovation; patents; local economic booms; agglomeration; natural resources |
| JEL: | L71 O12 O31 |
| Date: | 2025–05–26 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhhfms:2025_020 |
| By: | Jaroslav Vlach (Faculty of Economics) |
| Abstract: | This study explores the financial dynamics, strategic growth, and innovation within the sugar production sector in Central and Eastern Europe (CEE) over the period 2013-2022. It focuses on six countries-Czech Republic, Austria, Germany, Poland, Hungary, Slovakia and analyzes 14 major sugar-producing companies using a combined methodological approach based on time-series trend analysis and Principal Component Analysis (PCA). Key financial metrics such as capital structure, working capital, operating revenue, profitability, and employment are examined to assess differences in performance across firms and countries. The research is framed by three central questions that investigate the interaction between company size, financial stability, national market context, and development potential. A major turning point for the sector-the abolition of the EU sugar quota system in autumn 2017-marked the beginning of a fully liberalized market environment, intensifying global competition and reshaping regional production strategies. The results indicate that larger firms tend to provide financial stability but exhibit limited growth trajectories, while smaller companies are more adaptable and often demonstrate stronger development potential. National differences are also significant: the Czech Republic and Poland emerge as dynamic and competitive markets; Austria and Germany reflect mature industries with constrained growth prospects; Hungary and Slovakia show financial challenges yet offer opportunities for development. By identifying structural trends and regional disparities, the study contributes to a deeper understanding of the post-quota sugar market. It offers relevant insights for policymakers and industry leaders aiming to balance financial health, innovation, and sustainability in order to ensure the sector's long-term competitiveness in a volatile global economy. |
| Keywords: | principal component analysis, dynamics of the sugar market, financial stability, company development, equity, Central and Eastern Europe |
| JEL: | C38 G30 L66 Q13 |
| Date: | 2025–04–22 |
| URL: | https://d.repec.org/n?u=RePEc:boh:wpaper:01_2025 |
| By: | Acosta Henao, Miguel (Central Bank of Chile); Amado, María Alejandra (Bank of Spain); Pérez Reyna, David (Universidad de los Andes); Martí, Montserrat (Central Bank of Chile) |
| Abstract: | This paper investigates the granular transmission of U.S. monetary policy shocks to deviations from the uncovered interest rate parity (UIPDs) in emerging economies. Using a comprehensive dataset from Chile that accounts for firm-bank relationships and the time-variant characteristics of both firms and banks, we uncover several key findings: (1) Shocks to the federal funds rate (FFR) increase banks’ costs of foreign borrowing; (2) these higher credit costs disproportionately affect small firms, raising their UIPDs more than for large firms; (3) this size-differentiated impact stems from the relatively higher interest rates on domestic currency loans faced by small firms; (4) in contrast, interest rates on dollar-denominated loans respond homogeneously across all firms; (5) we find no differential effect on loan quantities, suggesting an active role of credit supply and demand. We rationalize these findings with a small open economy model of corporate default that incorporates heterogeneous firms borrowing from domestic banks in both foreign and domestic currencies. In our model, a higher FFR reduces the marginal cost of defaulting on domestic-currency debt for small firms more than for large firms |
| Keywords: | Uncovered interest rate parity; U.S. monetary policy; bank lending; firm financing; firm heterogeneity |
| JEL: | E43 E44 F30 F41 |
| Date: | 2025–06–04 |
| URL: | https://d.repec.org/n?u=RePEc:col:000089:021387 |
| By: | Wadho, Waqar; Chaudhry, Azam |
| Abstract: | We estimate the impact of international standards certification on the export performance of firms in a developing economy using a unique panel data from Pakistan's textile and apparel sector. To address endogeneity, we implement a novel instrumental variable strategy that leverages the prevalence of certified non-rival firms within the same district as an exogenous source of variation in certification adoption. We find that certification significantly increases the likelihood of exporting by 44 percentage points, raises export volumes by nearly ten times, and boosts annual export growth by 68 percent. We, then, explore the underlying mechanisms and find that certification facilitates product diversification, enhances knowledge networks, promotes both product and process innovation, and yields significant gains in labor productivity. However, certification does not lead to greater product complexity, suggesting that while it results in horizontal expansion and strengthens external linkages, it is not sufficient for vertical upgrading. |
| Keywords: | ISO, standards certification, export, technological innovation, productivity |
| JEL: | L14 L15 F14 M21 O31 J24 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1611 |
| By: | Hutschenreiter, Dennis; Liu, Qianshuo |
| Abstract: | Institutional common ownership of firm pairs in the same industry increases the likelihood of a preexisting social connection among their CEOs. We establish this relationship using a quasi-natural experiment that exploits institutional mergers combined with firms' hiring events and detailed information on CEO biographies. In addition, for peer firms, gaining a CEO connection from a hiring firm's CEO appointment correlates with higher returns on assets, stock market returns, and decreasing product similarity between companies. We find evidence consistent with common owners allocating CEO connections to shape managerial decision-making and increase portfolio firms' performance. |
| Keywords: | CEO appointments, CEO connections, common ownership, firm performance, product similarity |
| JEL: | G23 G32 G34 L21 L22 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwhdps:319068 |
| By: | Amy Wenxuan Ding (EM - EMLyon Business School); Shibo Li (Indiana University [Bloomington] - Indiana University System) |
| Abstract: | Scientists are interested in whether generative artificial intelligence (GenAI) can make scientific discoveries similar to those of humans. However, the results are mixed. Here, we examine whether, how and what scientific discovery GenAI can make in terms of the origin of hypotheses and experimental design through the interpretation of results. With the help of a computer-supported molecular genetic laboratory, GenAI assumes the role of a scientist tasked with investigating a Nobel-worthy scientific discovery in the molecular genetics field. We find that current GenAI can make only incremental discoveries but cannot achieve fundamental discoveries from scratch as humans can. Regarding the origin of the hypothesis, it is unable to generate truly original hypotheses and is incapable of having an epiphany to detect anomalies in experimental results. Therefore, current GenAI is good only at discovery tasks involving either a known representation of the domain knowledge or access to the human scientists' knowledge space. Furthermore, it has the illusion of making a completely successful discovery with overconfidence. We discuss approaches to address the limitations of current GenAI and its ethical concerns and biases in scientific discovery. This research provides insight into the role of GenAI in scientific discovery and general scientific innovation. |
| Keywords: | Scientific discovery, Generative artificial intelligence, Large Language models, ChatGPT |
| Date: | 2025–03–20 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05053017 |
| By: | muhammad islam, Muqeem |
| Abstract: | The evolution of innovation dates back to ancient civilizations and continues to shape modern economies through high-tech advancements. Reverse engineering—a process of deconstructing and enhancing technologies—has been instrumental in industrial growth worldwide, notably in countries like China and Japan. Pakistan’s potential in leveraging reverse engineering remains underutilized, hindered by outdated infrastructure, inadequate R&D investments, weak institutional frameworks, and fragmented policies. Initiatives like STZs and the Digital Pakistan Policy offer promise but suffer from misaligned execution. This study underscores the transformative potential of reverse engineering in Pakistan’s defense, agriculture, pharmaceuticals, and renewable energy sectors. By fostering academia-industry-government collaboration, improving infrastructure, and adopting global best practices, Pakistan can bridge its technological gaps, enhance export competitiveness, and reduce its import dependency. A robust reverse engineering strategy will catalyze innovation, strengthen industrial output, and pave the way for long-term economic sustainability and self-reliance. |
| Keywords: | Reverse engineering, innovation, economic sustainability, high-tech industries Pakistan |
| JEL: | O2 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124837 |
| By: | Bosker, M.; Haasbroek, M. |
| Abstract: | We use detailed historical data on India’s domestic infrastructure to show how its high domestic transport costs have conditioned the local labour market consequences of its drastic import tariff liberalization in the early 1990s. We find that districts located farther away from the country’s main international gateways are better shielded from the resulting increased foreign import competition: their non-agricultural employment falls less than in otherwise similarly exposed districts located closer to India’s major ports. At the same time, they also benefit less from improved access to foreign intermediates: non-agricultural employment increases less than in districts with a similar input-output structure but located closer to the country’s main ports. These employment responses also vary across firms of different sizes: employment in small to medium sized firms is hit hardest by increased import competition, whereas employment in medium to large firms benefits most from better access to foreign intermediates. This difference between small and large firms is also most pronounced in districts best-connected to India’s major ports. |
| Keywords: | Words Gains from Trade, Domestic Infrastructure, Local Labour Demand, India |
| JEL: | F14 F15 R11 |
| Date: | 2025–04–29 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camjip:2512 |
| By: | Ron Boschma |
| Abstract: | The paper reviews how the concept of institutional complementarities has been approached in the Varieties of Capitalism and Policy Mix literatures. Based on a critical review, we propose instead an evolutionary framework to analyze institutional complementarities that is inspired by the principle of relatedness. We discuss promising future applications in economic geography, such as how complementarities across institutions may promote regional diversification in regions, how this institutional complementarity framework may shed light on the question what is feasible when implementing institutional change in specific territorial contexts, and how it may contribute to understand better how regional innovation policy may become effective in particular institutional contexts. |
| Keywords: | institutions, institutional complementarities, institutional relatedness, institutional change, institutional space, varieties of capitalism, policy mix, policy space, regional diversification, Evolutionary Economic Geography |
| JEL: | B15 B52 P51 R11 R58 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2514 |
| By: | Elena Simintzi; Sheng-Jun Xu; Ting Xu |
| Abstract: | We study the effects of government-subsidized childcare on women's careers and firm outcomes using linked tax filing data. Exploiting cohort-level variation in childcare access based on a Quebec universal childcare reform, we show that earlier access to childcare not only increases new mothers' employment and earnings, but also prompts them to reallocate careers to firms previously unattractive to new mothers. These firms subsequently benefited from the reform, drawing more young, productive female workers and experiencing better performance. Our results suggest that childcare frictions hamper women's career progression and the allocation of human capital in the labor market. |
| JEL: | G30 G38 J13 J16 J2 J6 M5 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33835 |