|
on Small Business Management |
|
Issue of 2025–07–28
thirty papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Pichyada Pheunpha (Department of Business Management, Faculty of Management Science, Ubon Ratchathani University) |
| Abstract: | SMEs are widely acknowledged as essential economic growth, employment, and innovation drivers in both developed and developing economies. However, to survive and remain competitive, strong business performance is crucial for their success. The research aimed to examine the influence of entrepreneurial characteristics and innovative business creativity on the performance of SMEs in Ubon Ratchathani Province, Thailand. A questionnaire with a reliability coefficient (0.97) at a very high level was used in this study. Area sampling collected 271 small and medium enterprises in Ubon Ratchathani province, Thailand. The statistics used were descriptive statistics and multiple linear regression analysis. The results showed that eight sub-independent variables correlated with the business performance at a very high level (r = 0.87) and can explain or predict the variance of business performance at a high level with 74% (Adjusted R-Square). Seven variables affected the business performance of SMEs with statistical significance at 0.01** and 0.05*, which were entrepreneurial characteristics of management (? = 0.183**), taking risks (? = 0.181**), learning of business innovative creativity (? = 0.17**), creativity (? = 0.16**), innovation (? = 0.159*), operational (? = 0.15*), and autonomy (? = 0.12**), respectively. To enhance the performance of SMEs in Ubon Ratchathani Province, entrepreneurs should focus on improving their business management skills through workshops and tailored training, fostering a culture of calculated risk-taking by creating safe environments for experimentation, such as pilot projects, and investing in continuous learning and development to bolster innovative thinking, including seminars and mentorship programs. Additionally, organizing brainstorming sessions can promote creativity and lead to actionable outcomes from innovative ideas, and supporting employee autonomy will further enhance motivation and innovation. On the government side, creating support programs and facilitating networking opportunities will allow entrepreneurs to share best practices and challenges. Collaboration with research institutions can also drive innovation, while regular assessments of SME needs will ensure relevant and effective policy adjustments. Implementing these strategies will cultivate a more innovative and resilient business environment. |
| Keywords: | Entrepreneurial Characteristics, Business Innovative, Creativity, Business Performance, SMEs |
| JEL: | F14 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iacpro:14916813 |
| By: | Gibson, Gráinne; Lenihan, Helena; Perez-Alaniz, Mauricio; Rammer, Christian |
| Abstract: | Climate change can cause major challenges for Small and Medium-sized Enterprises (SMEs). Responding and adapting to such challenges is crucial, as SMEs are vital for driving economic growth and employment in most countries. Investing in R&D is a key way in which SMEs can build the capacities required for responding and adapting to climate change-related challenges. However, the extent to which such challenges affect SMEs' R&D activities remains a critical gap in existing knowledge. Using detailed firm-level data on 1, 730 SMEs in Ireland, our study is the first to explore this issue. We achieve this, using information on SMEs' climate changerelated challenges, from a new module of the 2018-2020 wave of the Irish part of the Community Innovation Survey (CIS), the Innovation in Irish Enterprises Survey (IIE). By combining a matching approach with probit regression analysis, we find that climate changerelated challenges can increase the probability of SMEs investing in R&D. Such challenges can also increase the probability of SMEs engaging in continuous, as opposed to occasional R&D. Based on our findings, the above impacts are mainly driven by climate change, resulting in higher costs/input prices. Our study highlights the importance of R&D for SMEs to adapt and respond to climate change and provides critical insights for SMEs and policymakers alike. |
| Keywords: | Climate change-related challenges, small and medium sized enterprises, research and development, climate change adaptation, climate change mitigation |
| JEL: | Q54 Q55 O32 O33 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:319901 |
| By: | Yoshiki Ando |
| Abstract: | Motivated by the substantial growth and upfront investments of venture capital (VC) backed firms observed in administrative US Census data, this paper develops a firm dynamics model over the life cycle. In the model, startups choose the source of financing from VC, Angel investors, or banks, depending on their growth potential, and invest in innovation. The calibrated model explains the life-cycle dynamics of firms with different sources of financing and implies that venture capitalists’ advice accounts for around 22% of the growth of VC-backed firms. A counterfactual economy without VC financing would lose aggregate consumption by around 0.4%. |
| Keywords: | Venture capital, firm dynamics, innovation, upfront investment, defaultable debt, endogenous sorting |
| JEL: | D22 D25 E22 G24 G30 O32 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:25-38 |
| By: | Bhargava, Pranay |
| Abstract: | In India, entrepreneurship is often reduced to skilling combined with nano-finance. Public programs largely wash their hands after budgeting for short-term training, linking to microfinance, and creating shared infrastructure — all designed to serve large numbers of mass entrepreneurs at subsistence levels. This paper takes a 180-degree sharp reversal of that approach. It argues that by ignoring the more aspirational, growth-ready entrepreneurs — those sitting at the top of the local entrepreneurial networks — current policies are actually promoting enterprises sub-optimally, and failing to unlock the real potential of India’s unincorporated sector. The paper proposes an Acceleration Model focused on identifying and backing Barefoot Unicorns — the high-aspiration HWEs and αHWEs strategically positioned at the top of local entrepreneurial networks — through adaptive incubation, behavioral conditioning, flexible finance (revenue-based financing, micro-equity), and network-driven scale, aligned to the unpredictable, non-linear journey toward Product–Market Fit (PMF). Even a modest shift could unlock 18 crore new jobs. This paper offers a strategic blueprint for governments, catalysts, CSR, incubators, investors, lenders, and DPI ecosystem actors to move beyond outcome-poor schemes towards high-leverage, ROI-maximizing entrepreneurship models. |
| Keywords: | MSME policy India; MSME job creation; Revenue-based financing; Rural entrepreneurship; Micro enterprises; MSME cluster development; High-growth entrepreneurship; MSME incubation; Mass entrepreneurship vs high-growth entrepreneurship; Entrepreneurial ecosystem design; Barefoot Unicorns; Hired Worker Enterprises (HWE); Micro-equity; Flexible Finance; Incubator micro enterprises; |
| JEL: | G23 I38 J21 L26 M13 O12 O17 O31 |
| Date: | 2025–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125170 |
| By: | Shailender Kumar Hooda (Institute for Studies in Industrial Development, New Delhi) |
| Abstract: | Given the crucial role of enhancing investment in Research and Development (R&D) to drive innovation, improve competitive performance, and foster industrial growth through technological advancements, this study investigates the current status, quantum, and trends in R&D investment behaviour at the firm level within India’s organized manufacturing sector. By using unit-level data of Annual Survey of Industries (ASI), study provides nationally representative estimates of R&D propensity and intensity, distinguishing it from prior research constrained by data availability. The study assesses the contributions of small and medium size (SMS) versus large firms in R&D investments across various technology levels in the registered manufacturing sector. Our unique dataset makes this the first research to explore the impact of industry concentration and government incentives such as product-subsidy on R&D activities and intensity for SMS and large units using Cragg double-hurdle model and Heckman selection model, while accounting for other firm-level characteristics. Findings indicate that while overall R&D spending and activity levels are on the rise, though R&D intensity see a declining trend. Notably, SMS firms demonstrate higher R&D intensity in both low- and high-tech sectors compared to larger firms, though their intensity have been dwindling in the wake of pandemic, especially in high-tech industries segment. R&D spending in pharmaceutical industry now accounts for more than half of the overall organized manufacturing sector’s R&D, while the recent decline in R&D spending within the motor vehicle industry is concerning. The double hurdle regression analysis shows that larger firms, those with foreign capital, and those in high-tech industries are more likely to engage in R&D and invest more in it. Factors such as firm age and location in high industrial activity concentration areas also significantly influence R&D investment. Although the product subsidy coefficients were positive, they were less significant in impacting the R&D engagement likelihood, suggesting that while subsidies can support R&D, their direct impacts are often limited. However, firms receiving subsidies on a larger number of products experienced a significant positive influence on their R&D activities. For SMS firms, the results indicate that they may benefit more from subsidies and technology imports, pointing towards potential policy interventions to enhance their R&D efforts. |
| Keywords: | Manufacturing, R&D behaviour, R&D intensity, SMEs, Technology Intensity, Industrial Concentration, Product-Subsidy, India |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sid:wpaper:285 |
| By: | Yankova Dima; Abbasiharofteh Milad |
| Abstract: | European innovation policy combines place-based and spatially blind instruments that operate under distinct logics. Building synergies between them requires not only regulatory alignment, but a better understanding of how economic actors interact across policy levels. This study examines how companies’ participation in the European Framework Programmes (FP) influences their propensity to engage in regional R&D partnerships, supported by Cohesion Policy. We analyse longitudinal data on Valencian firms using inferential network analysis (i.e., Temporal Exponential Random Graph Models). Results indicate that FP beneficiaries are more active in regional tie formation than non-FP firms, especially when academic intermediaries are involved. Yet, they also tend to collaborate with each other, limiting opportunities for knowledge diffusion among firms that do not benefit from the international collaboration premium. |
| Keywords: | rR&D network, innovation policy, intermediaries, TERGM |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2520 |
| By: | Jun Cui |
| Abstract: | This study examines the relationship between AI-driven digital transformation and firm performance in Chinese industrial enterprises, with particular attention to the mediating role of green digital innovation and the moderating effects of human-AI collaboration. Using panel data from 6, 300 firm-year observations collected from CNRDS and CSMAR databases between 2015 and 2022, we employ multiple regression analysis and structural equation modeling to test our hypotheses. Our findings reveal that AI-driven digital transformation significantly enhances firm performance, with green digital innovation mediating this relationship. Furthermore, human-AI collaboration positively moderates both the direct relationship between digital transformation and firm performance and the mediating pathway through green digital innovation. The results provide valuable insights for management practice and policy formulation in the context of China's evolving industrial landscape and digital economy initiatives. This research contributes to the literature by integrating perspectives from technology management, environmental sustainability, and organizational theory to understand the complex interplay between technological adoption and business outcomes. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.11558 |
| By: | Galinoma Lubawa (The Open University of Tanzania); Saganga Mussa Kapaya (The Open University of Tanzania) |
| Abstract: | While family business studies on socioemotional wealth and family-owned firms' financial performance are growing globally, most have focused on European, Asian and American family firms, where economic and cultural changes have altered traditional family structures. These prior studies have predominantly examined private family-owned firms with diverse ownership structures, with limited attention paid to single-family-owned firms. Therefore, to address the identified research gap, this study analysed 267 Tanzanian single-family-owned food processing firms to assess the influence of family firm culture on socioemotional wealth and firms' financial performance using generalised structural equation modelling. The study's findings indicate that family firm culture significantly influenced the socioemotional wealth dimensions of family continuity, family prominence and family enrichment, positively affecting firms' financial performance. This study recommends that family business owners prioritise family firm culture in their socioemotional wealth and financial performance strategies. The study suggests that future research should develop qualitative instruments for measuring socioemotional wealth dimensions. |
| Keywords: | Socioemotional wealth, Family firm culture, Financial performance, Family-owned firms, Food processing firms |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05096004 |
| By: | Kendzia, Michael Jan (Zurich University of Applied Sciences (ZHAW)); Neville, Tomas (Zurich University of Applied Sciences (ZHAW)); Gadgil, Maya (Zurich University of Applied Sciences (ZHAW)) |
| Abstract: | This study investigates the key drivers behind the wealth accumulation of America’s 100 richest self-made billionaires, using data from the Forbes 400 list. Focusing on five individual and contextual factors—education, innovation, networks, inheritance, and geographic origins—the research applies regression analysis to evaluate the statistical significance and predictive power of each. The results show that education, especially from elite institutions, is a strong and consistent predictor of wealth. Innovation, measured by patents and entrepreneurial activity, shows the strongest correlation, emphasizing its centrality in modern wealth creation. Networks—both personal and professional—also play a crucial role, though they interact with other variables. In contrast, inheritance and geographic origins, while influential, exhibit weaker statistical associations. Notably, 89% of the cohort received little or no family funding, underscoring the importance of individual agency and external investment. The findings challenge assumptions about inherited wealth and highlight the role of human capital, innovation ecosystems, and urban opportunity structures in financial success. |
| Keywords: | wealth accumulation, entrepreneurship, education and innovation, social mobility, economic mobility |
| JEL: | J24 D31 L26 O31 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17994 |
| By: | Tarik Alperen Er; Burak Deniz; Ibrahim Yarba |
| Abstract: | This paper investigates the firm heterogeneity in the evolution of loan spreads over the credit cycle in Türkiye. Using the combination of credit registry and administrative datasets, our bankfirm level analysis shows that small- and medium-sized enterprises (SMEs) and firms that are riskier and more prone to financial frictions pay higher loan interest rates. The results also reveal that loan spreads of these firms decrease and converge to the spreads of large and financially sound firms during expansion periods. Our firm-level analysis indicates that these findings persist at the firm level. Our results suggest that SME loan spreads rise more than those of larger firms during tightening periods. This reveals the asymmetric deterioration in SMEs’ lending conditions relative to large firms. On the other hand, the significant role of firm riskiness on loan spreads weakens during expansion periods. However, these findings are valid only for loans extended by private banks but not state-owned banks. Our findings lend support to policy makers’ prudent approaches over the credit cycle. |
| Keywords: | Loan Spreads, Credit Cycle, SMEs, State-Owned Banks |
| JEL: | E32 E5 G21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:tcb:wpaper:2510 |
| By: | Sara Amoroso; Randolph L. Bruno; Laura Magazzini |
| Abstract: | This paper identifies the dichotomous role (bright and dark sides) of Intellectual Property Rights (IPR) protection on labor productivity among highly innovative globalised firms. The role of appropriability conditions -such as IPR protection- as "Schumpeterian" incentive to innovation has been largely explored in the empirical literature. In this paper, we contribute to this strand explore the role of appropriability conditions on firm labor productivity under different configurations of R&D activities in highly globalized companies. In line with the literature, we show that labor, capital and R&D investments lead to productivity gains, and that the strength of the patent system the firm is embedded into is positively linked to the firm’s labor productivity too. We call this the 'bright side' of IPR. However, stronger intellectual property rights might have a detrimental effect on the R&D returns, which appear to be maximized around the median level of IPR protection. In other words, too much protection might actually reduce R&D returns, again in line with the "Schumpeterian prediction". Then, we call this the ‘dark side’ of IPR. To our knowledge, this is the first paper highlighting such dichotomy (bright and dark sides of IPR) on a purpose-built high-quality database of globalized firms, which tend to be the most innovative firms in the world. |
| Keywords: | panel data, appropriability, productivity |
| Date: | 2025–07–24 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2025/26 |
| By: | Laurence Jacquet; Stéphane ROBIN (CY Cergy Paris Université, THEMA) |
| Abstract: | We re-examine the R&D - innovation - productivity nexus in 8 EU countries in the context of a possible EU-wide "super deduction" on R&D expenditures, using panels of industries with a long time dimension. We introduce dynamics in the innovation production function and extended production function models, taking the availability/unavailability of R&D tax credits (R&DTC) into account. Our benchmark estimates, obtained with panel ARDL models, yield positive longrun elasticities of innovation and productivity with respect to R&D intensity. R&D conducted under an R&DTC either reinforces an already-existing positive elasticity or makes it significantly positive if it was not before. Disentangling the respective effects of ’pure’ business R&D and of government-supported R&D reveals a wider diversity of situations, however. The effect of R&DTC is less often significant, sometimes superseded by other forms of public support to R&D. The main policy implication of these results is that a harmonized "super-deduction" on R&D at the EU level may be slightly premature. Complementary analyses suggest that targeting specific industries may make such a policy more effective and accurate. |
| Keywords: | Innovation, Productivity, Dynamic Panel Data Models, Public Support to R&D, European Science and Technology Policy |
| JEL: | O30 O38 H25 H54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ema:worpap:2025-09 |
| By: | Dr Souiabou Samba Traore (Université des sciences sociales et de gestion de Bamako - USSGB - Université des sciences sociales et de gestion de Bamako); Dr Bakary Berthe (Université des sciences sociales et de gestion de Bamako - USSGB - Université des sciences sociales et de gestion de Bamako); Etienne Fakaba Sissoko (Université des sciences sociales et de gestion de Bamako - USSGB - Université des sciences sociales et de gestion de Bamako, CRAPES MALI - Centre de Recherche et d'Analyses Politiques, Economiques et Sociales du Mali); Dr Ousmane Mariko (Université des sciences sociales et de gestion de Bamako - USSGB - Université des sciences sociales et de gestion de Bamako) |
| Abstract: | This article examines the determinants of entrepreneurial intention among students of the Faculty of Economic Sciences and Management at the University of Social Sciences and Management of Bamako (FSEG/USSGB), in the context of Mali. Faced with unemployment and underemployment among young graduates, entrepreneurship is perceived as a key driver of economic development. The authors analyze the effect of entrepreneurship programs and individual attributes on students' entrepreneurial aspirations. Adopting a quantitative approach and relying on multinomial logistic regression to process data from 567 students, this research identifies attitudes towards entrepreneurship, subjective norms, and perceived behavioral control -in line with the theory of planned behavior and Shapero and Sokol's model of entrepreneurial intentions -as major influences on entrepreneurial intention. Contextual variables, such as place of residence and gender, also reveal their significance. The results highlight the crucial role of entrepreneurship education programs, positively influencing the orientation of students' entrepreneurial intentions. Significant variations between the entrepreneurial intentions of men and women, as well as according to place of residence, are observed, suggesting the need for differentiated approaches to stimulate entrepreneurship. The article enriches the literature by providing a detailed analysis of factors affecting entrepreneurial intention in a specific African context. It underscores the importance of entrepreneurship programs in activating this intention among young graduates. The authors encourage future research on gender dynamics in entrepreneurship and the effectiveness of pedagogical approaches. Finally, it discusses implications for the development of policies and programs promoting entrepreneurship in Mali and similar contexts. |
| Keywords: | Entrepreneurial intention Entrepreneurship programs Contextual factors Multinomial logistic regression Mali, Entrepreneurial intention, Entrepreneurship programs, Contextual factors, Multinomial logistic regression, Mali |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04750957 |
| By: | Krieger, Bastian; Rainville, Anne Marie |
| Abstract: | Public procurement requirements and voluntary standards are increasingly used to foster environmental product innovations. However, quantitative evidence on their individual and joint effects is absent, and their conceptualization remains at an early stage. This paper makes two contributions. First, it introduces the distinction between rigid threshold and flexible benchmark uses of voluntary standards in public tenders, theorizing their opposing effects on environmental product innovations. Second, using data from 5, 127 firms in the 2021 German Innovation Survey and applying linear probability models, it provides the first quantitative analysis of their individual and joint effects across varying degrees of environmental significance. Results show that public procurement requirements and voluntary standards individually increase the probability of firms introducing environmental product innovations with high environmental significance. However, their interaction reveals a negative effect - discomplementarity - likely driven by rigid standard use, which offsets the effectiveness of procurement requirements. For environmental product innovations with low environmental significance, only voluntary standards exhibit a positive effect. These findings suggest that voluntary standards might limit the capacity of public procurement to foster more radical or disruptive environmental product innovations, while supporting more incremental innovations when used independently. |
| Keywords: | Public procurement, Voluntary standards, Environmental innovation |
| JEL: | O31 O38 Q55 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:319896 |
| By: | Reher, Leonie; Thomä, Jörg; Bizer, Kilian |
| Abstract: | This paper advances the empirical measurement of the Doing-Using-Interacting (DUI) mode of innovation, based on the conceptual framework of Alhusen et al. (2021) and its survey-based operationalization of Reher et al. (2024b). Using data from German SMEs, we examine whether the three-dimensional structure of DUI learning theorized in the literature can be mirrored empirically. Exploratory factor analysis (EFA) confirms this latent structure by identifying three main learning processes: (1) DUI internal (learning-by-doing and internal interaction), (2) DUI user-driven (learning-by-using), and (3) DUI external (learning-by-externalinteraction). However, some factor loadings are problematic, suggesting that not all of the original indicators are suitable for measuring the DUI mode of innovation. Secondly, building on the latent structure identified through EFA, short scales of various lengths are developed using Ant Colony Optimization (ACO) to address practical constraints in innovation surveys. This provides a starting point for the further development of DUI innovation indicators that are particularly suited to less RD-intensive innovation contexts, such as small firms, low-tech sectors, and lagging regions, as well as corresponding short scales. |
| Abstract: | Diese Studie verbessert die empirische Messung des Doing-Using-Interacting (DUI)-Innovationsmodus auf Grundlage des konzeptionellen Rahmens von Alhusen et al. (2021) und der umfragebasierten Operationalisierung von Reher et al. (2024b). Anhand von Daten deutscher KMU wird untersucht, ob sich die in der Literatur theoretisch hergeleitete dreidimensionale Struktur des DUI-Lernens auch empirisch abbilden lässt. Eine explorative Faktorenanalyse (EFA) bestätigt diese latente Struktur, indem sie drei zentrale Lernprozesse identifiziert: 1. DUI internal: beschreibt die innerbetriebliche Bedeutung von Schulungen, Fehlerkultur, (informellen) Wissensaustauschs oder des Personalmanagements im Innovationsprozess. 2. DUI user-driven: bezieht sich auf die Einbindung von Kundenwissen in Innovationen durch Kooperation, Kundenkontakt oder Produktspezifikationen. 3. DUI external: umfasst innovationsbezogenes Lernen durch den Austausch mit Zulieferern, Wettbewerbern, Akteuren innerhalb und außerhalb des eigenen Sektors, Beratungsunternehmen und öffentlichen Institutionen sowie die Bedeutung von Netzwerken und Branchenverbänden. Einige Faktorladungen sind jedoch problematisch, was darauf hindeutet, dass nicht alle ursprünglichen Indikatoren zur Messung des DUI-Innovationsmodus geeignet sind. Darüber hinaus werden - basierend auf der durch die EFA identifizierten latenten Struktur - mittels Ant Colony Optimization (ACO) Kurzskalen unterschiedlicher Länge entwickelt, um praktischen Einschränkungen in Innovationsumfragen zu begegnen. Dies stellt einen Ausgangspunkt für die Weiterentwicklung von DUI-Innovationsindikatoren dar, die insbesondere für weniger F&E-intensive Innovationskontexte geeignet sind - etwa in kleinen Unternehmen, in Low-Tech-Sektoren oder in strukturschwachen Regionen - sowie für entsprechende Kurzskalen. |
| Keywords: | innovation measurement, innovation indicator, modes of innovation, SMEs |
| JEL: | O30 O31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifhwps:321860 |
| By: | Federico Barbiellini Amidei (Bank of Italy); Matteo Gomellini (Bank of Italy); Lorenzo Incoronato (CSEF, University of Naples Federico II, CESifo, CReAM and Rockwool Foundation Berlin); Paolo Piselli (Bank of Italy) |
| Abstract: | This paper studies the relationship between demographic change and entrepreneurship and highlights its spatial dimension. We digitize historical censuses to reconstruct entrepreneurship rates and the age structure of Italian provinces since1960. We develop an estimation framework that relates entrepreneurship to granular age cohorts of the local population, leveraging instrumental variables to address endogeneity issues. Our results uncover stark regional heterogeneity. In Northern Italy, we find a hump-shaped age-entrepreneurship profile peaking at cohorts aged 30-40. In the South, entrepreneurship increases with age. Regional differences in the local business environment partly account for different estimated profiles. |
| Keywords: | entrepreneurship, demographic change, regional differences, long run |
| JEL: | J11 L26 R11 |
| Date: | 2025–06–15 |
| URL: | https://d.repec.org/n?u=RePEc:sef:csefwp:752 |
| By: | London Melina (European Commission - JRC); Cotignano Giacomo (European Commission - JRC); Fatica Serena (European Commission - JRC) |
| Abstract: | "To support informed policymaking, this brief offers a detailed, sector-specific analysis of how EU firms access capital markets, with a focus on green financial instruments, comparing their position with counterparts in other regions and industries.It aims to help identify both the opportunities financial markets offer for fostering innovation and advancing the green transition, and the barriers that still hinder effective financing. The analysis also outlines possible directions for strengthening EU financial markets and exploring their role in achieving the objectives of the Competitiveness Compass" |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142344 |
| By: | Davide Consoli; Francesco Lelli; FSandro Montresor; Francois Perruchas; Francesco Rentocchini |
| Abstract: | Given the crucial role of Venture Capital (VC) in financing the green transition, and its uneven geographical distribution, we examine how the proximity of VC investors to green start-ups influences the success of their deals. Considering the intrinsically higher risk profile of start-ups in the greensector, we maintain that their spatial proximity to VC investors will have a larger effect here than in other sectors. Furthermore, considering recent advancements in the digitalization of VC, we also argue that a digital kind of proximity between investors and green investees in accessing digital technologies (platforms) could matter for that, by also reducing the binding effect of spatial proximity on the success of VC green deals. Using data from Dealroom, and combining them with the SpeedTest open dataset by Ookla, we test for these arguments with respect to a large sample of about 12, 000 green start-ups, originally identified by combining multiple methods (text scraping, topic modelling, and machine learning), located in 27 EU (+3) countries from 2000 to 2020. Econometric estimates at the level of realised vs. potential VC green deals confirm that spatial proximity is more relevant for green than for non-green start-ups. The new quasi- dyadic indicator of digital proximity that we propose does also significantly and positively correlates with the actual occurrence of green deals, and negatively moderate the effect of spatial proximity, supporting our argument of a substitution relationship between the two. Policy implications are drawn accordingly. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2521 |
| By: | Ashraf, Nava; Delfino, Alexia; Glaeser, Edward L.; Solmone, Irene |
| Abstract: | In the World Bank Enterprise Survey, the share of entrepreneurs who are women first rises and then falls with national income, while female labor force participation has the opposite U-shaped pattern. We present a model in which gender-based disadvantages, such as discrimination and household obligations, deter firm formation in poor countries and complex firm formation in rich countries. In middle-income countries, high returns to entrepreneurship offset gender-based costs, and firms remain simple. We document that female-owned firms are smaller and simpler. Larger firms are more productive. The female entrepreneurship rate is associated with female education, weak kinship ties, and Buddhism. |
| JEL: | R14 J01 N0 |
| Date: | 2025–05–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128372 |
| By: | Martin Neil Baily; David M. Byrne; Aidan T. Kane; Paul E. Soto |
| Abstract: | With the advent of generative AI (genAI), the potential scope of artificial intelligence has increased dramatically, but the future effect of genAI on productivity remains uncertain. The effect of the technology on the innovation process is a crucial open question. Some inventions, such as the light bulb, temporarily raise productivity growth as adoption spreads, but the effect fades when the market is saturated; that is, the level of output per hour is permanently higher but the growth rate is not. In contrast, two types of technologies stand out as having longer-lived effects on productivity growth. First, there are technologies known as general-purpose technologies (GPTs). GPTs (1) are widely adopted, (2) spur abundant knock-on innovations (new goods and services, process efficiencies, and business reorganization), and (3) show continual improvement, refreshing this innovation cycle; the electric dynamo is an example. Second, there are inventions of methods of invention (IMIs). IMIs increase the efficiency of the research and development process via improvements to observation, analysis, communication, or organization; the compound microscope is an example. We show that GenAI has the characteristics of both a GPT and an IMI—an encouraging sign that genAI will raise the level of productivity. Even so, genAI’s contribution to productivity growth will depend on the speed with which that level is attained and, historically, the process for integrating revolutionary technologies into the economy is a protracted one. |
| Keywords: | Artificial Intelligence; Machine Learning; Productivity; Technological Growth |
| JEL: | C45 O31 O33 O40 |
| Date: | 2025–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-53 |
| By: | Martin Baily; David Byrne; Aidan Kane; Paul Soto |
| Abstract: | With the advent of generative AI (genAI), the potential scope of artificial intelligence has increased dramatically, but the future effect of genAI on productivity remains uncertain with the effect of the technology on the innovation process a crucial open question. Some labor-saving innovations, such as the light bulb, temporarily raise productivity growth as adoption spreads, but the effect fades when the market is saturated; that is, the level of output per hour is permanently higher but the growth rate is not. In contrast, two types of technologies stand out as having longer-lived effects on productivity growth. First, there are technologies known as general-purpose technologies (GPTs). GPTs are (1) widely adopted, (2) spur abundant knock-on innovations (new goods and services, process efficiencies, and business reorganization), and (3) improve continuously, refreshing this innovation cycle; the electric dynamo is an example. Second, there are inventions of methods of invention (IMIs). IMIs increase the efficiency of the research and development process, generating new ideas more quickly and cheaply; the compound microscope is an example. We show that GenAI has the characteristics of both a GPT and an IMI -- an encouraging sign. Even so, for genAI to boost productivity growth, its contribution will have to exceed the fading growth effects of past IT innovations baked into the trend, including predecessor AI technologies. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.14588 |
| By: | Lasarte Lopez Jesus (European Commission - JRC); Gonzalez Hermoso Hugo; M'barek Robert (European Commission - JRC) |
| Abstract: | Life sciences-related sectors play a vital role in addressing EU challenges, driving innovation in key areas like healthcare, biotechnology, and agriculture to enhance competitiveness, sustainability, and strategic autonomy. This policy brief examines the socioeconomic relevance, structure, and trends of Life Sciences sectors using three key economic indicators: employment, value added and R&D business expenditure. The analysis shows that Life Sciences sectors are crucial to the EU economy, accounting for 9.4% of GDP and employing 29 million people. These sectors have also driven economic growth in recent years, with increasing GDP contributions and job creation in productive sectors, and offer high growth potential and innovation capacity to address EU challenges. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142396 |
| By: | Philippe Jean-Baptiste (LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This research explores how Generative Artificial Intelligence (GAI) transforms the roles and competencies of middle managers. Grounded in activity theory, it examines organizational tensions, particularly between Bottom-Up innovation and centralized governance. A qualitative methodology, based on 60 semi-structured interviews conducted across large enterprises, medium-sized enterprises, and small businesses, investigates these dynamics in diverse contexts.Preliminary findings reveal that middle managers play a pivotal role in adopting GAI, often bypassing formal frameworks through Shadow IT. They are emerging as facilitators of change, requiring enhanced human and conceptual skills to interpret AI tools and manage organizational tensions effectively.This research proposes practical recommendations to balance innovation with compliance while strengthening the role of middle managers in technological transitions. Feedback is sought on analysing tensions, identifying managerial competencies, and ensuring the transferability of results. |
| Abstract: | Cette recherche explore comment l'intelligence artificielle générative (GAI) transforme les rôles et les compétences des cadres intermédiaires. La théorie de l'activité, qui observe les tensions organisationnelles, en particulier entre l'innovation ascendante et la gouvernance top-down. Une méthodologie qualitative, basée sur 60 entretiens semi-structurés menés auprès de grandes entreprises, de moyennes entreprises et de petites entreprises, étudie ces dynamiques dans divers contextes. Les résultats préliminaires révèlent que les managers intermédiaires jouent un rôle central dans l'adoption de l'IAG, contournant souvent les cadres formels grâce au Shadow IT. Ils émergent comme des facilitateurs du changement, nécessitant des compétences humaines et conceptuelles améliorées pour interpréter les outils d'IA et gérer efficacement les tensions organisationnelles. Cette recherche propose des recommandations pratiques pour équilibrer l'innovation et la conformité tout en renforçant le rôle des cadres intermédiaires dans les transitions technologiques. Des commentaires sont recherchés sur l'analyse des tensions, l'identification des compétences managériales et la garantie de la transférabilité des résultats. |
| Keywords: | Generative Artificial Intelligence (GAI), Middle managers, Organizational transformation, activity theory, bottom-up innovation, Shadow IT, managerial competencies, skilling, technological adoption |
| Date: | 2025–06–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05113172 |
| By: | Shen Zhen; Nikola Zivlak (EM - EMLyon Business School); Danijela Ćirić Lalić; Katherine Yiting Dong; Guanghua Han |
| Abstract: | Science parks (SPs) are expected to boost the growth and capabilities of their tenant companies, most research on their performance focuses on the outcomes or performance of these companies. However, science parks are in social ecosystems with responsibilities to a range of stakeholders, including tenant companies, the community, residents, and employees. This paper explores how different stakeholders evaluate science parks, and the relations between perceptual attributes and benefits from the perspective of stakeholders. We take Zizhu national science park as a case study and found that this relationship is affected by the heterogeneity of various factors, including the type and size of the company, the respondent's role, and the position of employees etc. We identify top three attributes and three benefits, and explored their relations. This paper provides a detailed and nuanced view of their roles within the broader ecosystem. |
| Keywords: | Science Park, Perceptual Attributes, Perceptual Benefits, Ecosystem |
| Date: | 2025–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05083047 |
| By: | Khalid Lahrour (UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)); Latifa Horr (UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)) |
| Abstract: | Financial inclusion refers to providing financial products and services to households and small businesses that were previously excluded, as a means of promoting more inclusive growth. This includes access to savings, investment, consumption smoothing, and insurance. Fintech is the use of software, applications, and digital platforms to provide financial services to consumers and businesses through digital devices like smartphones. It has gained recognition as a promising way to promote financial inclusion. This paper examines the impact of financial technology (fintech) on financial inclusion through a literature review following the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) to identify the ways in which fintech contributes to and can potentially contribute to increased financial inclusion. The paper provides a brief history of fintech, reviews the literature on fintech and financial inclusion, and discusses how fintech can increase access to financial services, promote financial literacy and consumer protection, and support the growth of micro and small enterprises. The paper concludes with empirical evidence on the impact of fintech on financial inclusion. |
| Keywords: | Fintech Financial inclusion Digital finance Innovation Systematic review. Classification JEL: G23 Paper type: Theoretical Research, Fintech, Financial inclusion, Digital finance, Innovation, Systematic review |
| Date: | 2025–05–31 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05137071 |
| By: | Dylan Hogg; Hossein Jebeli |
| Abstract: | Assessing insolvency dynamics is essential for evaluating the financial health of non-financial corporations and mitigating macroeconomic and financial stability risks. This study leverages a newly created Statistics Canada dataset linking insolvency records with firm-level financial data to develop a robust framework for monitoring insolvency risk. We employ two complementary approaches: a univariate threshold method that establishes critical financial ratio benchmarks and a multivariate econometric model that accounts for interactions among financial indicators. These methods produce debt-at-risk measures that enhance risk assessment by combining simplicity with analytical depth. Finally, we apply these metrics to timely firm-level data, enabling continual monitoring of financial vulnerabilities. |
| Keywords: | Credit and credit aggregates; Econometric and statistical methods; Financial stability; Firm dynamics |
| JEL: | D22 G33 L20 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocadp:25-10 |
| By: | Jan Malek; Jo Seldeslachts; Reinhilde Veugelers |
| Abstract: | This paper provides empirical evidence on which M&A deals spur innovation, and which stifle it. To do so, we consider not only the product market position of the acquiring firm, but also the position of both target and acquirer in the technology space. Focusing on the antidiabetic drugs market, our dataset tracks the lifecycle and patenting of all individual antidiabetic projects in development between 1997 and 2017. We show that most terminations of acquired projects occur while the projects are still far from product market entry. Nevertheless, a number of these early-stage acquisitions have a positive impact on innovation. These cases arise when incumbents acquire projects close to their own projects in product markets, but only if these projects are also close in technology markets. Those deals are associated with increased subsequent patenting, which is consistent with the exploitation of technological synergies. Our results point to the crucial role of combining both product market and technology market positions in assessing the innovation effects of pharmaceutical M&As. |
| Keywords: | M&As, innovation, R&D, pharmaceutics, technology, novelty, patents |
| JEL: | L41 L65 O31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:diw:diwwpp:dp2128 |
| By: | Pelissier Pierre-Mathieu (European Commission - JRC); Grabowska Marcelina (European Commission - JRC); Bergamini Michela (European Commission - JRC) |
| Abstract: | This report presents a patent landscape analysis investigating the innovation trends within the industrial biotechnology (IB) sector from 2015 to 2020. The study's primary objective is to identify the geographical hotspots of innovation, the key players, and the role of different types of organizations in driving technological advancements in IB. By employing a methodology that includes data retrieval through the Technology Innovation Monitoring (TIM) tool and careful selection of keywords and Cooperative Patent Classification (CPC) terms, the report categorizes patents across five technological areas pertinent to IB. The geographical scope of the analysis encompasses major global players as well as the European Union, providing a broad view of the innovation landscape. The report also introduces an online dashboard to facilitate further analysis and exploration of the data. This study serves as a resource for policymakers, industry stakeholders, and researchers, offering insights that can inform strategic planning and decision-making in the evolving field of industrial biotechnology. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139154 |
| By: | Krieger, Bastian; Füner, Lena; Prüfer, Malte |
| Abstract: | Public procurement offers sizable market opportunities for young firms. We investigate the firm- and founder-level characteristics determining young firms' decision to apply for public tenders, as well as the procurers' selection of an awardee. We distinguish between observable and unobservable characteristics as well as price-based tenders (tenders awarded solely on the price criterion) and criteria-based tenders (tenders awarded based on additional criteria next to the price). Using representative survey data for 4, 314 young firms in Germany, we estimate a multinomial two-stage selection model. In the first stage, firms decide to "not apply, " to "apply for price-based tenders, " or to "apply for criteria-based tenders." In the second stage, procurers choose the awardee among the applicants of each tender type. We find the firm and founder determinants largely differ with regard to the first and second stage, as well as price- and criteria-based tenders. |
| Keywords: | Public procurement, Young firms |
| JEL: | H57 L26 O38 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:319891 |
| By: | Niccolò Murtas (University of Ferrara) |
| Abstract: | This study estimates an aggregate green knowledge production function (GKPF) for 19 OECD countries from 1981 to 2012, using panel-data econometric methods to address spatial spillovers and unobserved heterogeneity. Both Cobb-Douglas and translog functional forms are evaluated with multiple estimators, including standard fixed and random effects models, pooled and mean group common correlated effects (CCE) estimators, and random-trend models to account for shared upward trends among variables. The regression analysis examines the relationship between green patenting and key determinants such as R&D expenditure, human capital, and environmental policy indicators. The results consistently show a robust positive effect of domestic R&D, whereas the impacts of other factors exhibit greater variability. Methodologically, the findings highlight the sensitivity of coefficient estimates to unobserved heterogeneity and the choice of functional form. |
| Keywords: | Green innovation, knowledge production function, panel data, spatial spillovers |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:srt:wpaper:0725 |