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on Small Business Management |
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Issue of 2025–06–23
seventeen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Chen, Xiaodong; Lei, Haidong; Wang, Chaowei (Loughborough Business School); Zhou, Peng (Cardiff Business School, Cardiff University) |
| Abstract: | This research aims to investigate the causal relationships among collaborative innovation, R&D human capital, and sustainable innovation, with a focus on the mediating role of R&D human capital. Design/methodology/approach – Using data from Chinese A-share listed companies (2009–2022), we first establish a strong causal link between collaborative innovation and sustainable innovation. We then uncover a masking effect of R&D human capital in this relationship. Grouped and quantile regressions explore how this effect varies by cooperation type, firm size, and industry. Findings – Collaborative innovation promotes sustainable innovation through R&D human capital, although this effect is slightly dampened by a masking mechanism. The positive effect is significant in inter-firm collaborations but not in industry-university partnerships, and it is more pronounced for firms with lower R&D levels. Practical implications – Firms may benefit from HR sharing. Policymakers should support HR integration to improve innovation quality and sustainability. Originality/value – This is the first study to highlight the mediating role of R&D human capital in linking collaborative innovation to sustainability. We show that excessive focus on output quantity may hinder sustainable progress. |
| Keywords: | open innovation; R&D human capital; sustainable innovation; mediation effect; industry-university-research |
| JEL: | O32 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cdf:wpaper:2025/12 |
| By: | Lorena M. D’Agostino (University of Milano-Bicocca, Italy.); Rosina Moreno (AQR-IREA, Universitat de Barcelona, Spain.); Damián Tojeiro-Rivero (ESADE-University Ramon Llull, Spain.) |
| 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: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:ira:wpaper:202423 |
| By: | Damián Tojeiro-Rivero (Employment observatory, Department of Economics, University Rovira i Virgili, Spain.); Rosina Moreno (AQR-IREA Research Group, Department of Econometrics, Statistics and Applied Economics, Universitat de Barcelona, Spain.) |
| Abstract: | Prior literature has argued that, although both captive knowledge sourcing (CKS) and non-captive knowledge sourcing (NCKS) are effective strategies for enhancing firm innovativeness, the former plays a more defined role in determining the likelihood of a firm achieving product innovations. However, we contend that the focus should not only be on the decision to innovate but, more importantly, on the profitability firms derive from such innovations. Given that knowledge acquired from external sources can provide firms with ideas that differ from their existing competencies, NCKS may be more advantageous, as the resulting innovations are likely to exhibit higher levels of novelty. Additionally, we examine the complementarity or substitutability between CKS and NCKS in driving innovation. Our findings for Spanish firms suggest that NCKS yields greater benefits than CKS. Moreover, adopting both strategies simultaneously does not result in higher benefits; instead, a minimum threshold of NCKS, above the median, is necessary to realize observable gains. This indicates that firms must demonstrate a substantial level of commitment to NCKS to effectively exploit its potential for generating returns from their most novel innovations. |
| Keywords: | Radical Innovation, Captive Knowledge Sourcing; Non-Captive Knowledge Sourcing; Spanish firms; Panel data; Complementarity/Substitutability. JEL classification: |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ira:wpaper:202508 |
| By: | Alae-Dine Mamouni (Faculté Polydisciplinaire de Taza - USMBA - Université Sidi Mohamed Ben Abdellah [Fès]) |
| Abstract: | University entrepreneurship is seen by policymakers in many countries as an essential mechanism for stimulating innovation and economic growth. The article tries with a clear and intelligible critical theoretical approach to contribute to the development of a more integrated understanding of the process of institutional transformation of universities to an entrepreneurial model, in order to ensure a risk-free opening to the economic and social mutations of the environment and industry requirements. The university emerges as a key knowledge intermediary of the entrepreneurial university ecosystem while managing its own internal scientific and technological research ecosystem. It also responds to pressure from public policies through the change of its status and injunctions to introduce entrepreneurship and innovation. It is, on the other hand, required to get involved in territorial dynamics to promote the professional integration of its laureates. But with what effect(s)? |
| Abstract: | L'entreprenariat universitaire est perçu par les décideurs de nombreux pays comme un mécanisme essentiel pour stimuler l'innovation et la croissance économique. L'article essaie avec une approche théorique critique claire et intelligible de contribuer au développement d'une compréhension plus intégrée du processus de transformation institutionnelle des universités à un modèle entrepreneurial, afin d'assurer une ouverture sans risque aux mutations économiques et sociales de l'environnement et aux exigences de l'industrie. L'université émerge comme un intermédiaire de connaissances clé de l'écosystème universitaire entrepreneurial tout en gérant son propre écosystème interne de recherche scientifique et technologique. Elle répond, aussi à la pression des politiques publiques à travers le changement de son statut et des injonctions à introduire l'entrepreneuriat et l'innovation. Elle est, d'autre part, tenue de s'impliquer dans la dynamique territoriale pour favoriser l'insertion professionnelle de ses lauréats. Mais avec quel (s) effet (s) ? |
| Keywords: | Innovative university, Policy evaluation, Entrepreneurial university ecosystem, University spin-outs, Financing of scientific research, Financement de la recherche scientifique, Université innovante, évaluation des politiques, Ecosystème universitaire entrepreneurial, Entreprises universitaires dérivées. |
| Date: | 2024–06–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05064653 |
| By: | Alan Kwan; Ben Matthies; Richard R. Townsend; Ting Xu |
| Abstract: | Using a novel firm-level remote work measure created from big data on Internet activity, we show that firms with higher remote work during the pandemic are more likely to see their employees becoming entrepreneurs. This effect holds both unconditionally and relative to other types of job turnovers. We establish causality using instrumental variables and a panel event study. The marginally created businesses are higher quality than the average new firm. The effect is not driven by employee selection, preference change, or forced turnover. Rather, remote work increases spawning by providing the time and downside protection needed for entrepreneurial experimentation. |
| JEL: | E32 J22 J24 L26 M13 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33774 |
| By: | Giuseppe Berlingieri; Maarten De Ridder; Danial Lashkari; Davide Rigo |
| Abstract: | In theories of creative destruction, product innovation is a key driver of aggregate growth. In this paper, we confront the predictions of these theories about product dynamics with empirical patterns in product-level data on the near-universe of French manufacturing firms. We find that the process of product innovation frequently exhibits bursts-episodes in which firms rapidly add multiple products to their portfolio. Such bursts lead to substantial shifts in revenue and explain the majority of the variance in firm-level growth. We introduce a model of firm product innovation compatible with such a process that also nests the canonical models of creative destruction. We show that innovation bursts alter the equilibrium composition of age, size, and innovation efficiency of firms, and further explain the concentration of production among superstar firms. Our model thus enables the joint study of the determinants of industry concentration and growth in a setting consistent with the empirical patterns of product dynamics. |
| Keywords: | productivity, endogenous growth, firms, innovation |
| Date: | 2025–04–29 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2095 |
| By: | Marc Garcia-Ruiz (Faculty of Economics and Business, Universitat de Barcelona, Spain.) |
| Abstract: | In recent decades, decentralization has become a prominent topic in both academic and political discussions, with research increasingly focusing on its implications for economic development. This paper explores a specific facet of this debate by examining how decentralization influences business creation and the survival of new enterprises at the local level. By leveraging a panel dataset covering regions across multiple countries, we assess whether decentralization promotes entrepreneurship and sustains new businesses, particularly through the mediating role of institutional quality. Our findings suggest that while decentralization encourages business creation, it may reduce short-term firm survival rates. Additionally, strong institutional quality seems to amplify decentralization's positive effect on entrepreneurship and mitigate its adverse impact on the survival rate. |
| Keywords: | Local Economies; Decentralization; Entrepreneurship. JEL classification: L26, O43, O52, R11. |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:ira:wpaper:202413 |
| By: | Yukiko YOSHIDA; Yuji HONJO |
| Abstract: | This study clarifies the factors that influence an individual’s entrepreneurial intention in Japan, the United Kingdom (UK), and the Republic of Korea (Korea). Until now, which factors influence entrepreneurial intention have been debated because entrepreneurial intention, in addition to entrepreneurship, is essential for economic growth. However, there is room for further research as to whether such factors are common or unique to Japan. We conduct a questionnaire survey in Japan, the UK, and Korea to elucidate Japan-specific factors of entrepreneurial intention. We find some common factors in Japan, the UK, and Korea, despite Japan-specific factors. For example, entrepreneurial intention is high for individuals who have experience with or interest in side businesses, experience working with or investing in start-up firms, and experience in filing patents. Moreover, while having a family living in the same household increases entrepreneurial intention in the UK and Korea, this relationship is not found in Japan. Furthermore, based on the framework developed by Yoshida and Honjo (2023), we conduct a comparison study of entrepreneurial intention using job change intention as a benchmark. As a result, we find that job change intention is higher than entrepreneurial intention in Japan, entrepreneurial intention is higher than job change intention in the UK, and entrepreneurial and job change intentions tend to be similar in Korea. In the UK and Korea, entrepreneurship and job change are similarly positioned, while in Japan, entrepreneurship and job change are positioned differently. Overall, entrepreneurial intention is lower in Japan than in the other countries, suggesting that factors unique to Japan are behind this low entrepreneurial intention. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:eti:rdpsjp:25012 |
| By: | Carolina Castaldi; Nicola Cortinovis; Milene S. Tessarin |
| Abstract: | Economic geography has offered several insights to understand the role of geography in shaping creativity, innovation and the way they are connected in space. Unfortunately, most attention has been devoted to analyzing cities and urban regions as the ideal context where creativity and innovation come together. Emerging counter-narratives are challenging this urban perspective and proposing that creativity-led innovation can also thrive in rural, often more peripheral, places. Theoretically, different arguments have been proposed, yet a clear conceptualization is lacking. We propose to link these arguments to two complementary ways in which creativity-led innovation might be at play, either as innovation in creative industries or as creative workers contributing to innovation across industries. Methodologically, most evidence comes from intriguing case studies and country-specific surveys, yet comparative quantitative evidence is missing or misleading. In this study, we propose to use trademarks as an alternative indicator to patents, better fitting creativity-led innovation. We illustrate the opportunities from our conceptualization and measurement with a comparative study of European regions. Using a database combining large scale occupational data with patent and trademark activity for the period 2011-2019, we analyze the relationship between creative occupations and innovation activity in rural regions. Our findings suggest that creativity-led innovation processes operate in rural regions but can only be uncovered when using trademarks as innovation indicators. These findings bear key policy implications, as they inform efforts towards formulating and monitoring the role of creativity and innovation for rural contexts. |
| Keywords: | creativity, innovation, regions, rural, urban, creative occupations, patents, trademarks |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2517 |
| By: | Pajarinen, Mika; Rouvinen, Petri |
| Abstract: | Abstract This working paper investigates intangible investments in Finnish firms from 2014 to 2019, utilizing comprehensive, register-based data from Statistics Finland. We analyze seven categories of internal intangible investments and observe that these investments are highly concentrated, with the top 10% of investors accounting for approximately two-thirds of the total. However, this concentration is comparable to that of employment, value added, and tangible investments. Firms that invest in intangibles generally exhibit higher productivity levels. Specifically, organizational capital and new financial products demonstrate a positive and statistically significant correlation with labor productivity. These findings highlight the significance of intangible investments for firm performance and offer insights into their distribution patterns within the Finnish business sector. |
| Keywords: | Intangible investments, Finnish firms, Labor productivity, Concentration |
| JEL: | D22 L25 O32 O34 |
| Date: | 2025–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:rif:wpaper:129 |
| By: | Alessia Matano (Dipartimento di Economia e Diritto, Università di Roma “La Sapienza”, Italy. AQR-IREA, Universitat de Barcelona, Spain.); Paolo Naticchioni (Roma Tre University and IZA, Italy.) |
| 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: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ira:wpaper:202502 |
| By: | Anna Kusetogullari; Huseyin Kusetogullari; Martin Andersson; Tony Gorschek |
| Abstract: | Generative Artificial Intelligence (GenAI) and Large Language Models (LLMs) are recognized to have significant effects on industry and business dynamics, not least because of their impact on the preconditions for entrepreneurship. There is still a lack of knowledge of GenAI as a theme in entrepreneurship research. This paper presents a systematic literature review aimed at identifying and analyzing the evolving landscape of research on the effects of GenAI on entrepreneurship. We analyze 83 peer-reviewed articles obtained from leading academic databases: Web of Science and Scopus. Using natural language processing and unsupervised machine learning techniques with TF-IDF vectorization, Principal Component Analysis (PCA), and hierarchical clustering, five major thematic clusters are identified: (1) Digital Transformation and Behavioral Models, (2) GenAI-Enhanced Education and Learning Systems, (3) Sustainable Innovation and Strategic AI Impact, (4) Business Models and Market Trends, and (5) Data-Driven Technological Trends in Entrepreneurship. Based on the review, we discuss future research directions, gaps in the current literature, as well as ethical concerns raised in the literature. We highlight the need for more macro-level research on GenAI and LLMs as external enablers for entrepreneurship and for research on effective regulatory frameworks that facilitate business experimentation, innovation, and further technology development. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.05523 |
| By: | Philippe Aghion; Antonin Bergeaud; Mathias Dewatripont; Johannes Matt |
| Abstract: | We develop a model of endogenous growth and firm dynamics with soft budget constraints, where firms differ in their innovation speed and slower firms need additional financing in order to eventually innovate. As creditors cannot anticipate refinancing needs in advance nor credibly commit to withholding future refinancing, a Soft Budget Constraint Syndrome emerges, causing excessive entry by slow firms and crowding out potentially more efficient innovators. The resulting trade-off between the positive effects of budget constraint softening on innovation by incumbents and slow-type entrants and its negative effects on entry by fast innovators, generates a hump-shaped relationship between refinancing costs and aggregate growth. Calibrating the model to French firm-level data, we show that the budget constraint softening associated with the decline in interest rates in the aftermath of the Global Financial Crisis accounts for 54% of the observed drop in the aggregate growth rates post-crisis. Although the softening in budget constraints has had a positive effect on incumbent innovation, this was more than offset by the resulting decrease in the entry rates of good firms (by 61% relative to the pre-crisis steady state). |
| Keywords: | firm dynamics, credit growth, soft budget constraint |
| Date: | 2025–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2091 |
| By: | Jonathan Labb\'e (CEREFIGE, IAE Nancy, UL); Typhaine Leb\`egue (VALLOREM, UT); Abdel Malik Ola (VALLOREM, UT) |
| Abstract: | This research examines the empowerment of women entrepreneurs in the context of entrepreneurial financing in France. It explores the factors that allow some women entrepreneurs to access certain categories of external finance more easily. The theoretical framework used is based on the concept of empowerment, explored through its personal and relational dimensions. The study relies on a quantitative approach, using data from a representative of women entrepreneurs. The results show that the status of a founder affects access to external finance in different ways: it increases the chances of successful fundraising, but reduces the chances of obtaining bank finance. This finding highlights the importance of empowerment dynamics, which vary according to the type of financing. In addition, characteristics such as the presence of a spouse in the business, high income, membership of a professional network and the diversity of this network complete the analysis of inequalities in access. This study, the first of its kind in France, suggests ways of enriching our understanding of the diversity of situations experienced by female founders, thus helping to deconstruct the homogeneous image of women's entrepreneurship. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.10064 |
| By: | Fouad Annaki (USMBA - Université Sidi Mohamed Ben Abdellah [Fès], FLDM - Faculté des Lettres et des Sciences Humaines, Dhar El Mahraz, Fès); Aaraj Khaoula El (Université Hassan 1er [Settat], LRMD FEG Settat - Laboratoire de Recherche en Management et Développement - Faculté des Sciences Economiques et de Gestion); Saadeddine Igamane (USMBA - Université Sidi Mohamed Ben Abdellah [Fès], Faculté des Lettres et Sciences humaines; FLSH Saïs, Fès, Maroc) |
| Abstract: | Why do some entrepreneurs do better than others? To respond to this question several attempts to identify and evaluate the factors influencing this and have generally focused either on the entrepreneur, namely: the features of personality, human capital, motivation and social skills ..., i.e. external factors such as accompanying structures, environmental context and social capital. In this regard, entrepreneurship research has indicated that social benefits of entrepreneurs influence the development of their social capital and their success entrepreneurship. Our work is aimed at complementing previous research on skills. social and social capital in the field of entrepreneurship, answering the question the extent to which the entrepreneur's social skills contribute to the developing its social capital and entrepreneurial success? This study is seeking to prove that the entrepreneur's social skills are a key element in exploiting favourable social capital and thus increase its chances of entrepreneurial success. |
| Abstract: | Pourquoi certains entrepreneurs réussissent-ils mieux que d'autres ? Pour répondre à cette question plusieurs tentatives d'identifier et d'évaluer les facteurs influençant cette réussite et se sont généralement concentrées soit sur l'entrepreneur à savoir : les traits de personnalité, le capital humain, la motivation et les compétences sociales …, soit sur des facteurs externes tel que les structures d'accompagnement, contexte environnemental et le capital social. A cet égard les recherches en entrepreneuriat ont indiqué que les compétences sociales des entrepreneurs influencent le développement de leur capital social et leur réussite entrepreneuriale. Notre travail a pour objectif de compléter les recherches antérieures sur les compétences sociales et le capital social dans le domaine de l'entrepreneuriat, en répondant à la question suivante : dans quel mesure les compétences sociales de l'entrepreneur contribuent-elles au développement de son capital social et à sa réussite entrepreneuriale ? Cette étude cherche à prouver que les compétences sociales de l'entrepreneur sont un élément clé pour exploiter un capital social favorable et ainsi augmenter ses chances de réussite entrepreneuriale. |
| Keywords: | Social capital social skills entrepreneurial success JEL Classification : Z130 L260 M130. Paper type: Theoretical Research, Social capital, social skills, entrepreneurial success JEL Classification : Z130, L260, M130. Paper type: Theoretical Research, Le capital social les compétences sociales la réussite entrepreneuriale Social capital social skills entrepreneurial success JEL Classification : Z130 L260 M130, Le capital social, les compétences sociales, la réussite entrepreneuriale Social capital, M130 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05062283 |
| By: | Francesco de Cunzo; Aurelio Patelli; Angelica Sbardella; Andrea Tacchella |
| Abstract: | This paper presents new evidence on how countries are innovating in response to the growing strategic importance of critical raw materials (CRMs). Using millions of patent abstracts from the PATSTAT database, we apply a large language model (LLM) to classify CRM-related inventions into four functional roles: use, refine, recycle, and remove. A fifth category, wrong, flags false positives and improves classification accuracy. This approach moves beyond simple patent counts by identifying the specific roles CRMs play in technological development, enabling a more nuanced view of innovation strategies. Our classification reveals a significant increase in CRM-related innovation over the past two decades, with notable variation across materials, functions, and countries. While use-related patents remain dominant, recent growth in recycle and remove functions points to a shifting emphasis on circularity. Geographically, China leads across all functions, while an upward trend in recycling activity is observed across several advanced economies. A panel data analysis reveals that innovation in refining, recycling, and removing CRMs is positively associated with innovation in their use, suggesting functional complementarities that can enable both technological progress and more sustainable material strategies. These findings have important implications for policy, highlighting the value of supporting functionally diverse CRM innovation, fostering international coordination, and adopting tools for real-time innovation monitoring. By combining text mining with AI-driven functional classification of patented inventions, this study offers a scalable method for tracking material-related innovation and informing policies aimed at sustainability and technological resilience. |
| Keywords: | Critical Raw Materials, Green and Digital Technologies, Large Language Models, Text Mining |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2516 |
| By: | Bauer Peter; Genty Aurelien (European Commission - JRC); Lucke Friedrich |
| Abstract: | Intangible capital is a key driver of productivity growth, competitiveness and resilience. Unlike tangible investment such as machinery and equipment, investment in intangible assets, especially R&D, shows low sensitivity to adverse demand shocks. R&D intensive firms seem to be more resilient (higher employment) during crises and recover faster (higher productivity) afterwards. Productivity growth can contribute to decarbonisation, but in many instances productivity growth and decarbonisation lead to conflicting objectives, which needs to be addressed through policy action. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc140398 |