|
on Small Business Management |
| By: | Arenas Díaz, Guillermo; Piva, Mariacristina; Vivarelli, Marco |
| Abstract: | This study investigates the relationship between Artificial Intelligence (AI) and innovation inputs in Spanish manufacturing firms. While AI is increasingly recognized as a driver of productivity and economic growth, its role in shaping firms' innovation strategies remains underexplored. Using firm-level data, our analysis focuses on whether AI complements innovation inputs - specifically R&D and Embodied Technological Change (ETC) - and whether AI can be considered as a Method of Invention, able to trigger subsequent innovation investments. Results show a positive association between AI adoption and both internal R&D and ETC, in a static and a dynamic framework. Furtheremore, empirical evidence also highlights heterogeneity, with important peculiarities affecting large vs small firms and high-tech vs low-tech companies. These findings suggest that AI may act as both a complement and a catalyst, depending on firm characteristics. |
| Keywords: | Artificial Intelligence, Method of Invention, R&D, Innovation Inputs, Innovative Complementarities |
| JEL: | O31 O32 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1676 |
| By: | Arenas Díaz, Guillermo (Università Cattolica del Sacro Cuore); Piva, Mariacristina (Università Cattolica del Sacro Cuore); Vivarelli, Marco (Università Cattolica del Sacro Cuore) |
| Abstract: | This study investigates the relationship between Artificial Intelligence (AI) and innovation inputs in Spanish manufacturing firms. While AI is increasingly recognized as a driver of productivity and economic growth, its role in shaping firms’ innovation strategies remains underexplored. Using firm-level data, our analysis focuses on whether AI complements innovation inputs - specifically R&D and Embodied Technological Change (ETC) - and whether AI can be considered as a Method of Invention, able to trigger subsequent innovation investments. Results show a positive association between AI adoption and both internal R&D and ETC, in a static and a dynamic framework. Furtheremore, empirical evidence also highlights heterogeneity, with important peculiarities affecting large vs small firms and high-tech vs low-tech companies. These findings suggest that AI may act as both a complement and a catalyst, depending on firm characteristics. |
| Keywords: | innovation inputs, R&D, method of invention, Artificial Intelligence, innovative complementarities |
| JEL: | O31 O32 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18175 |
| By: | Mauri Kotamaki (Turku School of Economics, University of Turku, Finland) |
| Abstract: | This paper estimates the causal effect of financial constraints on the short-term performance of Finnish SMEs using survey data from 2016-2024 and propensity score matching (PSM). We examine six outcomes: turnover, employment, investment, profitability, solvency, and innovation, and report effects on both odds and probability scales. Financial constraints significantly increase the likelihood of adverse outcomes: constrained firms face 10-30\% higher odds of reporting deterioration in core indicators, with the largest effects on solvency (29\% higher odds) and profitability, followed by investment and turnover; employment effects are smaller, and innovation effects modest. Marginal effects indicate up to a 4 percentage point reduction in the probability of improvement for key outcomes. Results are robust to multiple-testing adjustments, and alternative specifications. Heterogeneity analysis reveals that the effects vary by firm size, pointing to a dual mechanism: turnover and profitability effects are strongest for micro and small firms, reflecting immediate liquidity stress, while employment and investment effects intensify with firm size, suggesting real adjustments (growth obstacles) are more pronounced in mid-sized SMEs. Policy implications and directions for future research are discussed. |
| Keywords: | credit constraints, financing, impact analysis, propensity score matching |
| JEL: | G32 D22 L25 C21 O16 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:tkk:dpaper:dp172 |
| By: | Sasso Simone (European Commission - JRC); Perpiña Castillo Carolina |
| Abstract: | "This brief presents JRC analyses exploring entrepreneurship and business dynamics across EU territories. The evidence confirms urban–rural gaps in firm creation, high-growth enterprises, and especially in the startup landscape, while also highlighting distinctive strengths and success stories showing that rural areas can be engines of growth not only in sectors often associated with rural economies, but also in more diversified and knowledge-intensive activities. These findings point to untapped entrepreneurial potential of rural territories and the need for place-based policies to turn it into a driver of Europe’s competitiveness." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143536 |
| By: | Oluwatosin Agbaakin (Indiana University Indianapolis) |
| Abstract: | Artificial Intelligence (AI) has transitioned from a futuristic concept reserved for large corporations to a present-day, accessible, and essential growth lever for Small and Medium-sized Enterprises (SMEs). For entrepreneurs and business leaders, strategic AI adoption is no longer an option but an imperative for competitiveness, operational efficiency, and long-term survival. This report provides a comprehensive framework for SME leaders to navigate this technological shift, offering the foundational knowledge, business case, practical applications, and strategic guidance necessary to harness the power of AI. The quantitative evidence supporting AI adoption is compelling; 91% of SMEs using AI report that it directly boosts their revenue. Beyond top-line growth, AI drives profound operational efficiencies, with studies showing it can reduce operational costs by up to 30% and save businesses more than 20 hours of valuable time each month. This transformation is occurring within the context of a seismic economic shift; the global AI market is projected to surge from $233.46 Billion in 2024 to an astonishing $1.77 Trillion by 2032. This paper demystifies the core concepts of AI, presents a business case based on market data, details practical applications, and lays out a phased, actionable adoption strategy. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.14532 |
| By: | Mohammad Zeqi Yasin |
| Abstract: | Do industrial "superstars" help others up or crowd them out? We examine the relationship between the spillovers of superstar firms (those with the top market share in their industry) and the productivity dynamics in Indonesia. Employing data on Indonesian manufacturing firms from 2001 to 2015, we find that superstar exposures in the market raise both the productivity level and the growth of non-superstar firms through horizontal (within a sector-province) and vertical (across sectors) channels. When we distinguish by ownership, foreign superstars consistently encourage productivity except through the horizontal channel. In contrast, domestic superstars generate positive spillovers through both horizontal and vertical linkages, indicating that foreign firms do not solely drive positive externalities. Furthermore, despite overall productivity growth being positive in 2001-2015, the source of negative growth is mainly driven by within-group reallocation, evidence of misallocation among surviving firms, notably by domestic superstars. Although Indonesian superstar firms are more efficient in their operations, their relatively modest growth rates suggest a potential stagnation, which can be plausibly attributed to limited innovation activity or a slow pace of adopting new technologies. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.11139 |
| By: | Sahab Zandi; Kamesh Korangi; Juan C. Moreno-Paredes; Mar\'ia \'Oskarsd\'ottir; Christophe Mues; Cristi\'an Bravo |
| Abstract: | Small and Medium-sized Enterprises (SMEs) are known to play a vital role in economic growth, employment, and innovation. However, they tend to face significant challenges in accessing credit due to limited financial histories, collateral constraints, and exposure to macroeconomic shocks. These challenges make an accurate credit risk assessment by lenders crucial, particularly since SMEs frequently operate within interconnected firm networks through which default risk can propagate. This paper presents and tests a novel approach for modelling the risk of SME credit, using a unique large data set of SME loans provided by a prominent financial institution. Specifically, our approach employs Graph Neural Networks to predict SME default using multilayer network data derived from common ownership and financial transactions between firms. We show that combining this information with traditional structured data not only improves application scoring performance, but also explicitly models contagion risk between companies. Further analysis shows how the directionality and intensity of these connections influence financial risk contagion, offering a deeper understanding of the underlying processes. Our findings highlight the predictive power of network data, as well as the role of supply chain networks in exposing SMEs to correlated default risk. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.09407 |
| By: | Zoltan Bartha; Adam Bereczk |
| Abstract: | Our study presents a model of factors influencing the financial viability of Hungarian social enterprises, and tests the model on a sample of 220 Hungarian firms involved in social entrepreneurship. In the model we suggest that the most important factors for financial viability are the Regulatory environment (the transparency of regulations); the Entrepreneurial attributes of the entrepreneur (business orientation, business skills and experience, business planning tendencies); the Financial support provided by the environment (the ratio of grants, donations and subsidies within the total revenues of the firm); and the Strategy followed by the firms (the presence of such generic strategies as cost leadership or differentiation). We find that only two of the model's four factors are significantly associated with Financial viability: Entrepreneurial attributes and Financial support. The results suggest that the best way of strengthening the viability of social enterprises is through entrepreneurship training (to enhance the business skills and experience of the entrepreneurs, and to propagate business planning), and to provide grants and subsidies to these firms. As no significant association was found between Financial viability and Strategy, we can conclude that the role of market competition is probably relatively week among Hungarian social enterprises. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.21415 |
| By: | Andrea S. Gubik; Zoltan Bartha |
| Abstract: | Modern universities may play a significant role in entrepreneurial ecosystems by boosting the entrepreneurial activity of the region. One way to achieve this is through entrepreneurship education. In this study we suggest that one reason why entrepreneurship education has a weak impact on entrepreneurial activity is that the effect of courses and extracurricular programmes depends on how students perceive the entrepreneurial activity. We use the 2018 GUESSS database, which includes 9, 667 answers for Hungary, to develop a general linear model. The model suggests that students' entrepreneurial intentions, attitudes toward entrepreneurship, self-efficacy, social norms, as well as the university, and the field of study all have a small but statistically significant impact on how students perceive the entrepreneurial ecosystem within the university. Our conclusion is that more emphasis on shaping attitudes and arousing student interest can increase the efficiency of entrepreneurship education. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.21414 |
| By: | Signorelli Serena (European Commission - JRC); Fernández Cruzado Ana (European Commission - JRC); De Prato Giuditta (European Commission - JRC) |
| Abstract: | "The Science for Policy Brief explores the digital ecosystem in EU regions through the DGTES approach, focusing on research, innovation, and startups. It first highlights key NUTS 3 regions where research organizations are concentrated and discusses strategies to enhance competitiveness in Europe. The brief then identifies top NUTS 3 regions for research and innovation activities and examines economic indicators (GDP, employment and number of startups) to uncover potential growth opportunities." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143080 |
| By: | Martinez Cillero Maria (European Commission - JRC); Napolitano Lorenzo (European Commission - JRC); Rentocchini Francesco (European Commission - JRC); Seri Cecilia; Zaurino Elena (European Commission - JRC) |
| Abstract: | "Rising market concentration and the dominance of `superstar' firms have sparked concerns about declining competition and innovation. While technological change and globalisation are key drivers, mergers and acquisitions (M&As) may also play a role. This paper investigates whether firms use technological M&As — acquisitions of innovative subsidiaries with patent portfolios — to enhance market power. Using a global panel of 8, 314 publicly listed firms from 2008 to 2020 and a staggered difference-in-differences approach, we find that such acquisitions increase acquiring firms’ markups by 2% on average. Effects are stronger among top R&D investors, US-based firms, and those in high-tech manufacturing. The main mechanism appears to be greater insulation from competitors via acquired patents, which limit knowledge spillovers and raise entry barriers. These findings highlight the need for antitrust policies that balance innovation incentives with the risks of growing market power." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:wpaper:202503 |
| By: | Arunima Paul; John Chung |
| Abstract: | Credit access plays a pivotal role in enabling firms to participate in global markets and support broader economic growth. While large firms benefit from steady revenue streams and easier financing options, small and medium-sized enterprises (SMEs) frequently encounter substantial challenges in securing credit. This paper analyzes U.S. metropolitan area–level data to assess how local expansions in credit supply, particularly via Community Reinvestment Act (CRA) loans, influence export performance. Using the geographic dispersion of bank headquarters as an instrumental variable, we estimate that a 10% increase in credit availability results in a 4.5% increase in export volumes. Extending the analysis to a heterogeneous firm framework with credit frictions, we show that a 10% reduction in trade costs produces welfare gains from trade that are 18.75% larger when firms are unconstrained by credit. |
| Keywords: | Credit access; Exports; SMEs; Community Reinvestment Act; Financial constraints; Trade; Welfare |
| JEL: | G21 F41 E44 F14 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:abn:wpaper:auwp2025-09 |
| By: | Fairlie, Robert W. (University of California, Los Angeles); Fossen, Frank M. (University of Nevada, Reno); Lyu, Ke (Nevada State University) |
| Abstract: | The COVID-19 pandemic delivered an unprecedented shock to business entry, with sharply contrasting effects on different types of startups. Using newly constructed administrative data from the Comprehensive Startup Panel covering the universe of U.S. startups, we provide the first official numbers of the pandemic’s impact on employer and nonemployer startup dynamics. Nonemployer startup formation declined substantially in 2020, while employer startups unexpectedly increased. Survival outcomes also diverged: nonemployer startup survival dropped markedly, whereas employer startup survival remained largely stable. These findings reveal a pronounced compositional shift and underscore the importance of designing policies tailored to nonemployer startups in economic crises. |
| Keywords: | survival, pandemic, COVID-19, nonemployers, employers, startups, entrepreneurship, resilience |
| JEL: | L26 E32 M13 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18160 |
| By: | Schneck, Stefan |
| Abstract: | This exploratory study examines the effects of parental socialization and parental role models at ages 7 to 10 on the entrepreneurial intentions of their children in adolescence. Analysis of German household data and more than 1, 400 observations shows a moderation effect between parental role models and socialization. An adolescent's willingness to become self-employed in the future is influenced by parental role models and moderated by parental child-rearing practices related to risk-taking during childhood. While child-rearing practices not focused on risk-avoidance reinforce the parental role model effect and increase an adolescent's intentions to become self-employed, parental child-rearing practices geared toward risk aversion nullify any positive effects of having self-employed parents as role models. Parental socialization during childhood thus casts a long-term shadow and may explain why some children with self-employed parents have as little intention of becoming self-employed as children of employees. Early parental socialization practices may, thus, contribute to explaining the lack of willing entrepreneurs and family business successors. |
| Keywords: | entrepreneurial intentions, life course theory, role model, self-employment, socialization |
| JEL: | L26 D19 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1678 |
| By: | Corina Boar; Denis Gorea; Virgiliu Midrigan |
| Abstract: | We use firm-level data to document that private businesses experience large fluctuations in their profit shares. These are due to large, fat-tailed and transitory changes in output that are not fully accompanied by changes in their inputs. We interpret this evidence using a model of entrepreneurial dynamics. Because firms can limit their exposure to risk by operating at a smaller scale, our model predicts large macroeconomic losses from uninsurable business risk, much larger than those stemming from credit constraints. While self-financing allows entrepreneurs to quickly overcome credit constraints, even wealthy entrepreneurs remain considerably exposed to risk. |
| Keywords: | entrepreneurship, risk, credit constraints, misallocation |
| JEL: | E2 E44 G32 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1300 |
| By: | Soguero Escuer Jorge (European Commission - JRC); Abendroth Dias Kulani (European Commission - JRC); Aldave De Las Heras Laura (European Commission - JRC); De Prato Giuditta (European Commission - JRC); Fernández Cruzado Ana (European Commission - JRC); Fuetterer Michael (European Commission - JRC) |
| Abstract: | "This report provides an overview on the state of play for small modular reactors (SMRs) in a techno-economic perspective by presenting a preliminary mapping of the SMR ecosystem using the Techno-Economic Ecosystem (TES) approach. This methodology allows for a comprehensive mapping of the complex ecosystem constituting the SMR industrial landscape. Through the identification of activities and public and private actors interplaying, we can outline the EU strategic positioning as well as interdependencies, vulnerabilities, and opportunities for the development of these types of advanced reactors. The study offers insights on the EU role in the SMR network through collaboration and participation in the information flows.The main findings exhibit the critical need to transform European research into innovation to stay at the competitive forefront. A well-developed research network is a valuable asset to keep up with SMR technological progress, but the EU needs to foster its business network. Observing SMR activities that are related to other industrial ecosystems, we highlight the importance of these reactors to support the development and decarbonisation of energy-intensive industries and meet other objectives of the Clean Industrial Deal.While the present study offers a first overview of the results of the SMR techno-economic ecosystem mapping, the TES approach allows for exploring further analytical avenues and fine-tuning classification criteria. This novel analysis could provide strategic guidance to support public policies and international collaboration initiatives for further SMR development and deployment." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142326 |
| By: | Dubois, Pierre |
| Abstract: | We examine pharmaceutical regulations and incentives for innovation from an international perspective, highlighting the public good nature of healthcare innovation and its cross-border diffusion. We summarize the empirical evidence on how push and pull incentives shape R&D investment, innovation, and global access. We emphasize the role of strategic interdependencies and spillovers, including free-riding in R&D financing, learning-by-doing effects, drug shortages, reference pricing, and parallel trade. We then provide new evidence on the international spillovers of pull incentives on innovation, showing that international cooperation and innovative institutions are necessary to better align national regulations with the global objective of sustaining pharmaceutical innovation. |
| Keywords: | Pharmaceutical Regulation, Innovation, R&D, International Spillovers |
| JEL: | L10 L20 I10 I11 I18 |
| Date: | 2025–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:131002 |
| By: | Griniece Elina; Reid Alasdair; Miedzinski Michal (European Commission - JRC) |
| Abstract: | "This report explores the role of local and regional actors in mission-oriented innovation and industrial policies. It examines how current mission-oriented approaches engage regions, cities, and rural communities in mission design and implementation, and whether these policies have the potential to contribute to ‘competitive sustainability’ in the European Union (EU). The study finds that despite the development of vertical coordination structures, EU missions and many national mission-oriented innovation policies (MOIPs) lack effective multi-level collaboration mechanisms resulting in limited regional and local ownership of missions. There is a need for a higher degree of involvement of territorial stakeholders in the design and implementation of missions. The study provides lessons for place-based industrial missions, using the example of the automotive industry and sustainable mobility. It argues that a socially concerned industrial mission for the automotive sector should address differing dimensions depending on the type of region, such as urban or rural areas. The report emphasises the need for enabling frameworks that allow regions and cities to co-shape missions, and for mechanisms of ongoing evaluation and learning to capture new ideas and channel them into MOIPs." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143455 |
| By: | Croce, Annalisa; Gvetadze, Salome; Toschi, Laura; Ughetto, Elisa |
| Abstract: | This working paper provides a comprehensive overview of Europe's cleantech innovation landscape, highlighting both the sector's substantial maturity and the key challenges holding back the scale-up of clean technologies. It distils insights from four interlinked research studies - mapping the cleantech ecosystem, surveying industry perspectives, analysing venture capital's impact, and evaluating policy frameworks - to examine how cleantech companies can reach their full potential and what support they need to thrive. The paper reflects the EIF's commitment to bridging financing gaps and fostering sustainable growth across Europe. The EIF Working Papers are designed to make available to a wider readership selected topics and studies in relation to EIF's business. The Working Papers are edited by EIF's Market Assessment & Research and are typically authored or co-authored by EIF staff or are written in cooperation with EIF. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eifwps:328253 |
| By: | Yibo Qiao; Yingcheng Li; Ron Boschma |
| Abstract: | Place dependence is a widely recognized concept but has rarely been quantified in existing research. Employing the Wasserstein Distance algorithm from machine learning literature and China’s Annual Survey of Industrial Firms dataset, this paper introduces a novel method to measure the place dependence of industrial dynamics in Chinese cities, and explore its impact on urban economic performance. Our empirical findings confirm the presence of place dependence in Chinese cities, and show that cities diversifying into more related and complex industries tend to exhibit higher levels of place dependence. Moreover, place dependence appears to complement the effects of relatedness and complexity in enhancing urban economic performance. These findings offer important insights for regional industrial development and urban planning practices. |
| Keywords: | Place dependence, path dependence, knowledge complexity, industrial dynamics, economic performance, China |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2531 |
| By: | Nicolás de Roux (Universidad de los Andes); Luis R. Martínez (Emory University); Camilo Tovar (International Monetary Fund); Jorge Tovar (Universidad de los Andes) |
| Abstract: | How do exporting firms navigate the loss of a major foreign market? This study examines the response of Colombian manufacturing firms to the collapse of trade with Venezuela, Colombia’s second largest trade partner. Trade disruptions began in 2009 when Venezuela restricted imports from Colombia and worsened with Venezuela’s protracted economic crisis after 2014, leading to a fall in trade of more than 90% by 2018. Using transaction-level customs data linked at the firm level to the Colombian manufacturing census, we use a difference-in-difference design based on previous exports to Venezuela to estimate the effect of the loss of this market on firm performance over a ten-year period. Our analysis yields four main findings: (i) affected firms experience a sharp and persistent decline in exports; (ii) while they survive, these firms significantly reduce their scale, lowering production, input use, investment, employment, and wages; (iii) however, traditional measures of total factor productivity remain unchanged, suggesting that firms retain their technical capabilities; (iv) affected firms adapt by increasing exports to familiar markets but fail to expand into new markets or boost domestic sales. These results highlight the resilience of exporting firms but also underscore the persistent difficulties in substituting a major trade partner. |
| Keywords: | Exports, Firm Performance, Manufacturing, Trade Collapse, Total Factor Productivity |
| JEL: | F13 F14 F61 O12 D22 D24 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:col:000089:021687 |
| By: | Abdellah Moussaoui (UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)); Batali Ibtissam; Hafsa Lemsieh; Esskali Khalid |
| Abstract: | This study examines the hidden costs of digitalization in Moroccan SMEs, focusing on continuous training, cybersecurity, technological obsolescence, and change management. Using a quantitative survey of 53 SMEs and multiple regression analysis, it assesses the impact of these costs on profitability and business sustainability. Findings indicate that training and cybersecurity expenses significantly reduce profitability, while technological obsolescence and poor change management exacerbate operational inefficiencies. Neglecting these factors may hinder growth and limit digital scalability. Despite the sample size limitations, the study underscores the need for strategic cost management. SMEs are advised to adopt forward-looking budgeting to enhance resilience in an increasingly digital market. Future research could expand the scope of other regions and industries. |
| Abstract: | Cette étude examine les coûts cachés de la digitalisation dans les PME marocaines, en se concentrant sur la formation continue, la cybersécurité, l'obsolescence technologique et la conduite du changement. Au moyen d'une étude quantitative menée auprès de 53 PME et d'une analyse de régression multiple, elle évalue l'impact de ces coûts sur la rentabilité et la durabilité opérationnelles. Les résultats indiquent que les dépenses de formation et de cybersécurité réduisent significativement la rentabilité, tandis que l'obsolescence technologique et une gestion déficiente du changement exacerbent les inefficacités opérationnelles. La négligence de ces facteurs pourrait freiner la croissance et limiter la scalabilité digitale. Malgré les limitations liées à la taille de l'échantillon, l'étude souligne la nécessité d'une gestion stratégique des coûts. Il est recommandé aux PME d'adopter une budgétisation prospective pour renforcer leur résilience dans un marché toujours plus digialisé. Les recherches futures pourraient élargir le champ d'analyse à d'autres régions et secteurs. |
| Keywords: | Digitalization, Hidden costs, SMEs, Leadership, Sustainable Management, Coûts cachés, PME, Gestion Durable |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05143192 |
| By: | Mahdi Goldani |
| Abstract: | Innovation is becoming ever more pivotal to national development strategies but measuring and comparing innovation performance across nations is still a methodological challenges. This research devises a new time-series similarity method that integrates Seasonal-Trend decomposition (STL) with Fast Dynamic Time Warping (DTW) to examine Irans innovation trends by comparison with its regional peers. Owing to data availability constraints of Global Innovation Index data , research and development spending as a proportion of GDP is used as a proxy with its limitations clearly noted. Based on World Bank indicators and an Autoencoder based imputation technique for missing values, the research compares cross-country similarities and determines theme domains best aligned with Irans innovation path. Findings indicate that poverty and health metrics manifest the strongest statistical similarity with R and D spending in Iran, while Saudi Arabia, Oman, and Kuwait show the most similar cross country proximity. Implications are that Iranian innovation is more intrinsically connected with social development dynamics rather than conventional economic or infrastructure drivers, with region-specific implications for STI policy. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.10323 |
| By: | Sillero Illanes Carmen (European Commission - JRC); Magagna Davide (European Commission - JRC); Torrecilla Salinas Carlos (European Commission - JRC); Fernandez Gavilanes Gerardo |
| Abstract: | "This policy brief presents two fundamental ideas: first, that European cohesion funds can effectively support agile and efficient place-based transformative innovation policies, which boost competitive and sustainable ecosystems in areas such as circularity and reducing fossil fuel dependency. This is achieved through multilevel government and a strong stakeholder involvement, as demonstrated by the experiences of Finland and Denmark. Second, regions can enhance their capacity for transformative innovation through structured capacity-building processes, including study visits and exchanges. The study visit conducted by the Andalusian government to Finland and Denmark, designed by the Joint Research Centre (JRC) and supported by the TAIEX-REGIO instrument, serves as a clear example presented in this report. The insights and lessons learned from this experience could be valuable to other European regions seeking opportunities for transformation and aspiring to collaborate in this journey." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143279 |
| By: | Konrad Adler (University of St. Gallen - School of Finance; Swiss Finance Institute); JaeBin Ahn (International Monetary Fund (IMF)); Mai Dao (International Monetary Fund (IMF)) |
| Abstract: | We study how trade liberalization affects financial and innovation decisions of large firms across major G7 countries. We document how firms increase their cash holdings when their country's trading partners lower their import tariffs, while we find no effect of a decrease in the country's own import tariffs. Specifically, we find that the increase in cash holdings occurs before tariff cuts by trading partners and is associated with higher R&D spending and patent filing after the cuts. Our results are consistent with the predictions of a model in which higher expected returns to innovation from enhanced export market access lead to higher cash buffers. |
| Keywords: | Trade, MFN tariff, Cash Holdings, R&D, Patents |
| JEL: | F12 G31 O32 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2571 |
| By: | Bertoni, Fabio; Colombo, Massimo G.; Quas, Anita |
| Abstract: | This working paper evaluates the impact of the COSME Loan Guarantee Facility (LGF) on SMEs in Greece, Poland, Spain, and Romania between 2015 and 2023. Using advanced econometric methods, we compare SMEs that received a guarantee with a control group of similar companies. We find that SMEs benefiting from guaranteed loans outgrow their counterparts three years after the signature year, in terms of total assets, sales, and both tangible and intangible fixed assets. Moreover, beneficiary companies are less likely to go bankrupt by the end of 2023, particularly smaller and older firms. The results confirm that guaranteed loans support SME growth without adverse long-term effects on productivity or business survival. This paper is part of the ongoing work of the Impact Assessment division to support the EIF's transition to an impact-driven institution by designing and implementing a comprehensive Impact Assessment Framework. Ex-post impact studies, such as this report, play a key role in this Framework by informing and refining future support measures, while also enhancing the accuracy of predicted outcomes. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eifwps:328255 |
| By: | Janssen Matthijs; Miedzinski Michal (European Commission - JRC); Vankan Arthur |
| Abstract: | "The growing prominence of transformative innovation policy (TIP) necessitates a rethinking of the methodologies, metrics, and practices used in policy monitoring, evaluation, and learning. This article explores the methodological implications of applying theory-based evaluation (TBE) to the assessment of TIP initiatives. TBE emphasizes the identification and validation of causal mechanisms linking policy inputs to outcomes, while accounting for the contextual factors shaping these relationships. We examine key concepts and approaches for empirically testing theories of change, with particular focus on contribution analysis and process tracing as integrative frameworks for combining diverse analytical techniques and data sources. Using the EU Joint Research Centre’s Preparatory Action on place-based TIP as an illustrative case, we demonstrate how these methods can be operationalized in practice. The discussion highlights the critical role of fostering an evaluation culture oriented toward reflexive policy learning. We conclude by underscoring the potential of theory-based evaluation to clarify mechanisms of change, assess the realization of intended outcomes, and strengthen the foundations for continuous policy learning and improvement." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142629 |
| By: | Mohammad Hassan Shakil; Arne Johan Pollestad; Khine Kyaw; Ziaul Haque Munim |
| Abstract: | With the European Union introducing gender quotas on corporate boards, this study investigates the impact of board gender diversity (BGD) on firms' carbon emission performance (CEP). Using panel regressions and advanced machine learning algorithms on data from European firms between 2016 and 2022, the analyses reveal a significant non-linear relationship. Specifically, CEP improves with BGD up to an optimal level of approximately 35 percent, beyond which further increases in BGD yield no additional improvement in CEP. A minimum threshold of 22 percent BGD is necessary for meaningful improvements in CEP. To assess the legitimacy of CEP outcomes, this study examines whether ESG controversies affect the relationship between BGD and CEP. The results show no significant effect, suggesting that the effect of BGD is driven by governance mechanisms rather than symbolic actions. Additionally, structural equation modelling (SEM) indicates that while environmental innovation contributes to CEP, it is not the mediating channel through which BGD promotes CEP. The results have implications for academics, businesses, and regulators. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.00244 |
| By: | Mukasa, Stanley; Sangwa, Sixbert |
| Abstract: | Background. African startups operate amid acute capital scarcity and fragmented institutions, which complicates credible quality revelation to investors. Purpose. Focusing on the venture as the unit of analysis, this study investigates how milestones pursued inside university-affiliated accelerators function as signals of venture quality under scarcity, and how entrepreneurial behaviors shape the clarity and credibility of those signals. Design/methodology/approach. We track 17 technology ventures across East- and West-African university accelerators over 185 venture-quarters, combining venture-level panel regressions, event-study analysis, and fuzzy-set QCA. Two composite measures—the Governance-Readiness Index and the Signal-Portfolio Index—capture internal capability building and externally legible signals. Findings. Ventures graduating from university-affiliated accelerators secured roughly three times more equity than matched non-accelerated peers, with heterogeneity explained by milestone attainment and the breadth/strength of signal portfolios. We articulate a signal–noise paradox: effectuation/bricolage behaviors enable survival and progress under constraint yet can appear ambiguous to investors, attenuating signal clarity unless paired with governance readiness and externally validated milestones. Originality/value. The paper elevates signaling theory as the primary lens for early-stage ventures in emerging-market contexts, treats effectuation/bricolage as behavioral mechanisms, and situates staged financing as process logic and triple-helix/institutional-voids as contextual moderators. In doing so, it refines entrepreneurial signaling theory for scarcity contexts and offers actionable diagnostics for accelerators and policymakers designing inclusive, quality-assuring programs. |
| Date: | 2025–10–08 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:6jafg_v1 |