|
on Small Business Management |
| By: | Colombo, Massimo G.; Füner, Lena; Guerini, Massimiliano; Hottenrott, Hanna; Souza, Daniel |
| Abstract: | This paper replicates and extends the framework of Guzman and Stern (2020) to examine the evolution of entrepreneurial activity in Europe, focusing on France, Germany, and the United Kingdom between 2009 and 2023. Using harmonized national business registry data, we construct measures of both the quantity and quality of entrepreneurship across regions. In particular, we adapt the Entrepreneurial Quality Index (EQI), the Regional Entrepreneurship Cohort Potential Index (RECPI), and the Regional Entrepreneurial Acceleration Index (REAI) to capture the number of new ventures, their ex-ante growth potential, and the extent to which ecosystems translate this potential into realized outcomes. Our findings support the generalizability of this framework in the European context while revealing substantial heterogeneity across countries and regions. Major metropolitan centers such as Paris, London, and Munich combine high rates of entry with high entrepreneurial quality, but smaller knowledge- and research-intensive regions - including Cambridge, Oxford, Bonn, and Heidelberg - also emerge as important hubs. With respect to ecosystem performance, France and the UK initially exceeded expectations but later experienced steady declines, whereas Germany maintained relatively stable performance, with notable overperformance between 2012 and 2016. Moreover, we find a stronger positive correlation between entrepreneurial quantity and quality in Europe, suggesting that ecosystems capable of generating more start-ups are also more likely to produce high-quality firms. This study provides important insights for the comparative analysis of entrepreneurial ecosystems and builds a foundation for designing policies aimed at fostering high-quality, innovation-driven entrepreneurship in Europe. |
| Keywords: | Entrepreneurial Quality, Entrepreneurial Ecosystem, High-Growth Firms, Regional Innovation |
| JEL: | G24 G32 L25 L26 M13 R12 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:330316 |
| By: | Manyane Kpatoumbi Kankpe (Université Jean Monnet, Université Lyon 2, emlyon, GATE, CNRS, 42100, Saint Etienne) |
| Abstract: | Abstract: This study examines the impact of design activities on innovation and identifies the main determinants influencing firms’ investment in design. We use a cross-sectional database built from three sources: the French Community Innovation Survey (CIS) 2018, the Annual Declaration of Social Data (DADS), and the structural business statistics (FARE) for the period 2015–2017. By adopting an instrumental variable (IV) approach that accounts for the endogeneity of design, our results provide clear evidence that integrating design significantly increases the likelihood of innovation. A doubling of the number of designers within a firm more than doubles the probability of innovating in product or process. This impact of design is greater than that of R&D or marketing, indicating its central role in the innovation process. However, failing to consider the endogeneity of design leads to an underestimation of its true effect. Similarly, our results confirm the endogeneity of R&D, as demonstrated by Crépon et al. (1998), and ignoring this dimension also results in an underestimation of its impact on innovation. Regarding the determinants of design, we find that the concentration of designers within a sector and a region, public financial support, and export intensity foster its adoption. By introducing a time lag between innovation activities and their outcomes, certain limitations of cross-sectional studies—particularly simultaneity bias—are overcome, despite the use of the IV approach. |
| Keywords: | Design, Innovation, R&D, Marketing, Endogeneity |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:gat:wpaper:2521 |
| By: | Dotti, Nicola Francesco (Directorate-General for Research and Innovation, European Commission); Al-Ajlani, Haya (Directorate-General for Research and Innovation, European Commission); Benoit, Florence (Directorate-General for Research and Innovation, European Commission); Cavicchi, Bianca (Directorate-General for Research and Innovation, European Commission); Di Girolamo, Valentina (Directorate-General for Research and Innovation, European Commission); Kuenzel, Robert (Directorate-General for Research and Innovation, European Commission); Ravet, Julien (Directorate-General for Research and Innovation, European Commission) |
| Abstract: | This literature review provides short summaries of recent scientific articles discussing the challenges of public policies for startups, in line with the newly established Task Force for Startups and Scaleups. This publication is developed by the Team on ‘Economics of Research and Innovation’ of the Chief Economist Unit in the European Commission’s Directorate General for Research and Innovation. For this edition, the contributors are Nicola Francesco Dotti (review coordinator), Haya Al-Ajlani, Florence Benoit, Bianca Cavicchi, Valentina Di Girolamo, Robert Kuenzel, and Julien Ravet. |
| Keywords: | startups, public policies, entrepreneurship, innovation, economic growth |
| JEL: | L26 O30 O38 O52 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:eug:wpaper:ki-01-25-095-en-n |
| By: | Benoit, Florence (European Commission, Directorate-General for Research and Innovation); Di Girolamo, Valentina (European Commission, Directorate-General for Research and Innovation); Diodato, Dario (European Commission, Directorate-General for Research and Innovation); Canton, Erik (European Commission, Directorate-General for Research and Innovation); Ravet, Julien (European Commission, Directorate-General for Research and Innovation) |
| Abstract: | In today’s economy, knowledge represents a critical resource for long-term economic growth (Romer, 1990). Knowledge tends to accumulate in densely populated areas, where geographical proximity facilitates spillovers, rapid idea diffusion, and the recombination of capabilities. This localised concentration can further be enriched by global knowledge flows through collaborations and networks. Through this process, economies can obtain a set of capabilities that form the basis for the development of unique technological assets (Storper & Venables, 2004). These unique assets, which are difficult to replicate, become the cornerstone of a sustainable competitive advantage and contribute significantly to long-term economic development and resilience. |
| JEL: | O32 O52 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:eug:wpaper:ki-01-25-015-en-n |
| By: | Benoit, Florence (European Commission, Directorate-General for Research and Innovation); Karvounaraki, Athina (European Commission, Directorate-General for Research and Innovation); Stevenson, Alexis (European Commission, Directorate-General for Research and Innovation); Ravet, Julien (European Commission, Directorate-General for Research and Innovation) |
| Abstract: | Research and Development (R&D) investment is essential for maintaining the European Union (EU)’s economic growth, enhancing global competitiveness, and securing long-term prosperity. This policy brief aims to offer a deeper understanding of how R&D investments are structured, financed, and leveraged to enhance Europe’s long-term prosperity. It provides a comprehensive overview of the current R&D investment landscape in the EU, highlighting key trends and challenges, as well as the role of both public and private R&D funding in driving innovation. Additionally, the brief explores the EU’s progress toward its 3% R&D investment target, alongside key recommendations from the Draghi and Heitor reports on the future EU budget for Research and Innovation. |
| Keywords: | R&D investment, EU economic growth, global competitiveness, long-term prosperity, innovation, public R&D funding, private R&D funding, 3% R&D target |
| JEL: | O32 O52 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:eug:wpaper:ki-01-25-091-en-n |
| By: | Amélie Lafrance-Cooke; Alex McDougall |
| Abstract: | The COVID-19 pandemic had a substantial impact on business dynamics, leading to the temporary or permanent closure of many businesses. By contrast, corporate insolvency proposals and bankruptcies under the Bankruptcy and Insolvency Act declined in 2020. Using a newly developed linked database, this paper presents trends in exits, insolvency proposals and bankruptcies across business and financial characteristics among corporations from 2004 to 2020. Contrasting differences are found between exits and bankruptcies across firm sizes, industries, and provinces and territories. Small firms are more likely to exit than larger firms, while bankruptcy rates are lower among small firms compared with large firms. There are important differences across industries, with businesses in manufacturing having some of the lowest exit rates but relatively high bankruptcy rates. At the provincial and territorial levels, there is little variation in exit rates, but Quebec stands out for having low exit rates and the highest bankruptcy rates. In terms of financial characteristics, bankrupt businesses tend to have low levels of labour productivity, profitability and liquidity, and high levels of leverage. The results are similar for businesses that exit but far less pronounced, likely indicative of exits occurring for reasons other than business failure or financial distress. The results also suggest that bankrupt businesses became more vulnerable over time in terms of their financial ratios the year preceding bankruptcy. |
| Keywords: | business dynamics, business failure |
| JEL: | J23 M21 |
| Date: | 2023–10–25 |
| URL: | https://d.repec.org/n?u=RePEc:stc:stcp8e:202301000005e |
| By: | Luisa Corrado; Stefano Grassi; Aldo Paolillo |
| Abstract: | Recent studies suggest that space activities generate significant economic benefits. This paper attempts to quantify these effects by modeling both business cycle and long–run effects driven by space sector activities. We develop a model in which technologies are shaped by both a dedicated R&D sector and spillovers from space†sector innovations. Using U.S. data from the 1960s to the present day, we analyze patent grants to distinguish between space and core sector technologies. By leveraging the network of patent citations, we further examine the evolving dependence between space and core technologies over time. Our findings highlight the positive impact of the aerospace sector on technological innovation and economic growth, particularly during the 1960s and 1970s. |
| Keywords: | Aerospace, Space Economy, Growth |
| JEL: | A1 C5 E00 O10 |
| URL: | https://d.repec.org/n?u=RePEc:nsr:niesrd:573 |
| By: | Guy Gellatly; Wulong Gu |
| Abstract: | This Spotlight is a complement to a new presentation Research to Insights: Challenges and Opportunities in Innovation, Technology Adoption and Productivity, highlighting key findings from the agency’s productivity research program and recent business surveys. It also explores the relationship between competitive intensity and innovation and informs on the pace at which disruptive technologies, such as artificial intelligence, are being integrated into the economy. |
| Keywords: | innovation, technology adoption, productivity |
| JEL: | J23 M21 |
| Date: | 2024–07–24 |
| URL: | https://d.repec.org/n?u=RePEc:stc:stcp8e:202400700002e |
| By: | Amélie Lafrance-Cooke; Danny Leung |
| Abstract: | Early in the COVID-19 pandemic, it was shown that there were fewer new firms in 2020 and that these new firms were smaller than previous entrants. It would be problematic if the situation continued into 2021 and 2022 because new firms are seen as important conduits of innovation and economic renewal. This is particularly pertinent in the current context of weak productivity growth. This article finds that despite starting smaller in employment size and being fewer in number, the entrants in 2020 carried less debt, had more liquidity, were more profitable and were more productive in their year of entry than previous entry cohorts. In addition, perhaps as a result of these characteristics, the 2020 entry cohort, who could not qualify for COVID-19 support programs, had higher survival rates in the first two years of their existence compared with previous cohorts in the same point in their lifecycle and were able to catch up in average employment size in their second year after entry. Furthermore, the rate of entry and the average size of entrants in 2021 and 2022 have mostly recovered to their pre-pandemic levels. The characteristics of the 2021 entrants are also closer to those of 2020 entrants than to those of entrants in the pre-pandemic years. This suggests that weak firm entry or weak entrants are likely not the source of the current lack of productivity growth in the Canadian economy. However, more conclusive evidence will be available when more recent microdata become available. |
| Keywords: | COVID-19, new businesses, new firms, debt, liquidity, economic activity |
| JEL: | J23 M21 |
| Date: | 2024–06–26 |
| URL: | https://d.repec.org/n?u=RePEc:stc:stcp8e:202400600003e |
| By: | Tiago Cavalcanti; Kamiar Mohaddes; Hongyu Nian; Haitao Yin |
| Abstract: | This paper investigates the pass-through of environmental compliance costs along supply chains. We compile a firm-level dataset linking regulated firms in pollution-intensive industries with their top five clients and suppliers. We find that clients of regulated firms invest less in R&D, employ fewer skilled R&D staff, and produce fewer innovations than clients of less regulated firms, while no comparable effects are observed for suppliers. The pass-through is stronger with larger trade volumes, higher input prices faced by clients, and in markets where regulated firms hold greater market power or clients face intense competition. Policy simulations suggest that green technology incentives for regulated firms and R&D subsidies for their clients can mitigate these adverse effects and raise social welfare by enhancing both innovation and environmental quality. |
| Keywords: | environmental compliance, supply chain, pass-through, R&D, innovation |
| JEL: | O30 Q01 Q55 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-55 |
| By: | Dotti, Nicola Francesco (Directorate-General for Research and Innovation, European Commission); Canton, Erik (Directorate-General for Research and Innovation, European Commission); Debree, Gaelle (Directorate-General for Research and Innovation, European Commission); Di Girolamo, Valentina (Directorate-General for Research and Innovation, European Commission); Knobloch, Alina (Directorate-General for Research and Innovation, European Commission); Ravet, Julien (Directorate-General for Research and Innovation, European Commission); Steeman, Jan-Tjibbe (Directorate-General for Research and Innovation, European Commission) |
| Abstract: | This literature review provides short summaries of recent scientific articles discussing the challenges of Research and Innovation (R&I) skills. This publication is developed by the Team on 'Economics of Research and Innovation' of the Chief Economist Unit in the European Commission’s Directorate General for Research and Innovation. For this edition, the contributors are Nicola Francesco Dotti (review coordinator), Valentina Di Girolamo, Julien Ravet, and Jan-Tjibbe Steeman. This literature review is the first of a series of publications developed by the CEU R&I team, building upon the R&I Skills Report: A European Competence Framework for R&I Professionals published in 2023. In this report, the CEU R&I team analysed the skills and competences required by R&I professionals, to identify the main knowledge, skills, and attitudes necessary to perform a profession related to R&I. |
| Keywords: | Research and Innovation, R&I skills, R&I professionals, R&I activities, R&I policy |
| JEL: | O32 O38 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:eug:wpaper:ki-01-24-048-en-n |
| By: | Ainul Mohsein Abdul Mohsin (School of Management, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia Author-2-Name: Balqis Faqihah binti Rajak Author-2-Workplace-Name: "School of Management, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia " Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | "Objective - This study aims to develop a conceptual framework that links strategic foresight, organizational agility, and innovative performance in the context of logistics SMEs in Malaysia. It highlights the increasing importance of foresight and agility as critical drivers for sustaining innovation and competitiveness in a volatile, uncertain, complex, and ambiguous (VUCA) environment. Methodology/Technique - The paper adopts a conceptual approach grounded in the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT). A quantitative cross-sectional survey is proposed for future empirical validation, with data analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). Finding - The framework suggests that strategic foresight enables SMEs to anticipate technological, market, and policy changes, while organizational agility translates foresight into actionable strategies that enhance innovative performance. Agility is identified as a mediating factor in this relationship, reinforcing its role in driving innovation outcomes. Novelty - This study contributes to existing literature by integrating foresight and agility into a single framework tailored to logistics SMEs in Malaysia. It provides both theoretical contributions by extending RBV and DCT to SME contexts, and practical implications for managers and policymakers seeking to foster resilience, adaptability, and long-term innovation in the logistics sector. Type of Paper - Empirical" |
| Keywords: | Strategic foresight; Organizational agility; Innovative performance; Logistics SMEs; Malaysia; Resource-Based View; Dynamic Capabilities Theory. |
| JEL: | L25 L91 M10 O32 |
| Date: | 2025–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:gtr:gatrjs:gjbssr667 |
| By: | Alessio MITRA (European Commission, Directorate-General for Research and Innovation); Erik CANTON (European Commission, Directorate-General for Research and Innovation); Julien RAVET (European Commission, Directorate-General for Research and Innovation); Jan-Tjibbe STEEMAN (European Commission, Directorate-General for Research and Innovation) |
| Abstract: | Since 1984, the European Union (EU) invests in research and innovation (R&I) through the EU Framework Programmes (FP). This study sheds light on the added value of these long-term investments. To do so, the paper reviews the historical evolution of the FPs, presents the economic rationales for public financing of R&I, and explains the advantages of performing such efforts at the EU level beyond the actions of individual Member States. The study supports its claims with empirical evidence showing how EU R&I funding has boosted economic growth, created jobs, and advanced research and innovation in the EU. Furthermore, a set of case studies on FP success stories are showcased. |
| Keywords: | European Framework Programme, R&I funding, EU added value, public investment, research policy, innovation, economic impact |
| JEL: | O32 O38 C18 |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:eug:wpaper:ki-bd-24-003-en-n |
| By: | de Brauw, Alan; Hirvonen, Kalle |
| Abstract: | Micro, small, and medium enterprises (MSMEs) play an important role in the food environment in many low- and middle-income countries. But there is little systematic knowledge about the opportunities they have and constraints they face in trying to grow their businesses. To contribute to building this knowledge base, we draw upon linked household–enterprise surveys collected in two districts in Ethiopia in 2023. To learn about the constraints faced by these enterprises, we examine differences in organizational characteristics and business practices by outlet type, location, and manager gender and education among MSMEs that sell food. The results suggest that while there are clear availability constraints for specific types of foods, there are some strategies that could help MSMEs that retail healthy foods increase sales. If policymakers or others are interested in supporting sales through the food environment, interventions such as business training, service access, and capacity building on nutrition would best fit their needs. |
| Keywords: | capacity development; enterprises; food environment; healthy diets; households; nutrition; Ethiopia; Africa; Eastern Africa; Sub-Saharan Africa |
| Date: | 2025–10–20 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:ifprid:177229 |
| By: | Huju Liu; Hassan Faryaar |
| Abstract: | Technology adoption is essential for improving the growth, productivity and competitiveness of businesses. Previous research suggests that women-owned businesses may be less likely to adopt technologies because they are usually smaller, face more financial constraints, are less likely to access technology knowledge or training, and have different risk-taking preferences. This paper linked two cycles (2017 and 2019) of the Survey of Innovation and Business Strategy with the Canadian Employer-Employee Dynamics Database to study the use of advanced and emerging technologies by women- and men-owned businesses in Canada. The study found some evidence of differences in the use of certain technologies by women-owned businesses, compared with men-owned businesses. Women-owned businesses (12.3%) were less likely to use emerging technologies, such as artificial intelligence, than men-owned businesses (16.5%). However, there was no significant difference in the use of advanced technologies. A Blinder–Oaxaca decomposition showed that the difference in characteristics between women- and men-owned businesses explained about 31% of the overall difference in using emerging technologies. Certain characteristics such as the share of women employees, the average age of employees, business age and profitability played a role in explaining the overall differences. |
| Keywords: | technology adoption, women-owned businesses, emerging technologies, advanced technologies |
| JEL: | J23 M21 |
| Date: | 2024–08–28 |
| URL: | https://d.repec.org/n?u=RePEc:stc:stcp8e:202400800003e |
| By: | Aya Sehmani (EPME - Research Laboratory in Entrepreneurship SMEs - UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)); Sara Yassine (EPME - Research Laboratory in Entrepreneurship SMEs) |
| Abstract: | Considering the crucial role of entrepreneurship education in universities for the economic development (Nguyen & Nguyen, 2024), this study seeks to map the research landscape in the entrepreneurship education field. A bibliometric literature review was conducted to quantitatively analyze the literature published in the last decade in Scopus. This study adopts the PRISMA framework (The Preferred Reporting Items for Systematic reviews and Meta-Analyses) to examine 668 papers. The prominent contributions in this domain were summarized through adopting VOSviewer software and the R bibliometric packages. Our analysis revealed the distribution of entrepreneurship education in universities across the years 2013-2023, with the leading countries in this field and notable journals and authors with high impact factors being identified, alongside the keywords with the highest occurrence and the key subject areas involved. This research provides a rigorous quantitative study of research within entrepreneurship education in universities over the last decade, providing a comprehensive overview and guiding future research directions, with its theoretical contribution lying in systematic bibliometric mapping that reveals knowledge structures, research evolution patterns, and critical gaps within entrepreneurship education research, thereby establishing an empirical foundation for future theoretical development and methodological advancement in the field. |
| Keywords: | Bibliometric analysis, Entrepreneurial learning, Entrepreneurship education, Higher education, Research trends, Students, University |
| Date: | 2025–09–14 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05270676 |
| By: | Pablo CASAS (European Commission); Tryfonas CHRISTOU (European Commission); Valeria FERREIRA (European Commission); Abián GARCIA RODRIGUEZ (European Commission); Nicholas LAZAROU (European Commission); Luis PEDAUGA (European Commission); José Manuel RUEDA-CANTUCHE (European Commission); Hannah BERNARD (European Commission); Roberto VOLPE (European Commission); Daniel NEICU (European Commission); Simone SALOTTI (European Commission) |
| Abstract: | This paper presents a macroeconomic evaluation of the impact of the Horizon Europe Framework Programme for Research and Innovation, for which projects have been signed between 2021 and 1 July 2024, using the general equilibrium models RHOMOLO (Regional Holistic Model) and FIDELIO (Fully Interregional Dynamic Econometric Long-term Input-Output). The RHOMOLO model simulations suggest that the GDP gains in 2024 for the European Union would be up to 0.10% compared to GDP in 2020. The GDP gains are also expected to be significant in the medium term, with a cumulative GDP multiplier of more than 4, ten years after the end of the injection. The impact then gradually diminishes due to the obsolescence of the new knowledge and innovations generated by the policy intervention. The model results also show significant interregional spillovers in some, but not all, countries of the European Union. The FIDELIO model is used to disaggregate the impact of Horizon Europe funds on EU R&D expenditure and by sector, complementing the analysis of the RHOMOLO model. The results indicate that the positive effects on innovation gains, with business investment contributing to substantial GDP gains after the four-year intervention period, are mainly directed towards business R&D in manufacturing. Within manufacturing, the most important sub-sectors are the manufacture of machinery and equipment; computer, electronic and optical products; motor vehicles, trailers and semi-trailers; and fabricated metal products. |
| Keywords: | Research and Innovation funding, impact assessment, econometric methods, spillover effects, mediation analysis, policy evaluation |
| JEL: | O32 O38 C18 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:eug:wpaper:ki-01-25-112-en-n |
| By: | Jan-Tjibbe STEEMAN (European Commission, Directorate-General for Research and Innovation); Océane PEIFFER-SMADJA (European Commission, Directorate-General for Research and Innovation); Julien RAVET (European Commission, Directorate-General for Research and Innovation) |
| Abstract: | Research and innovation (R&I) are essential for countries’ competitiveness, prosperity, and societal resilience. Therefore, governments around the globe have established extensive R&I programmes to enhance R&I funding. This paper compares public R&I funding across the EU, US, and China - the world's largest R&I spenders – over recent years and identifies five key findings and their policy implications for the EU. First, all three economies have implemented strong R&I policies to boost investments in strategic areas, maintaining global leadership and safeguarding national interests, urging the EU to keep pursuing a strategic and balanced approach in line with 'promoting, protecting and partnering’. Second, China and the US have surpassed the EU in leveraging public R&D investments into private sector funding, suggesting the EU should reflect on its economic structure and focus more on disruptive innovations and advanced technologies. Third, EU public R&D funding is fragmented, indicating a need for better coordination, simplification, and potential consolidation. Fourth, despite relying more on public funding, the EU allocates less in absolute amounts to public R&D compared to the US, and EU’s Framework Programme (EU FP) budgets lag behind those of the US and Chinese counterparts, emphasising the need for EU R&D budget prioritisation. Fifth, R&D funding distribution varies: the EU emphasises research efforts, while the US and China invest more on later R&D stages, prompting policy reflections on aligning means with objectives. |
| Keywords: | Research and Innovation funding, impact assessment, econometric methods, spillover effects, mediation analysis, policy evaluation |
| JEL: | O32 O38 C18 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:eug:wpaper:ki-01-25-090-en-n |
| By: | Jan-Tjibbe Steeman (Directorate-General for Research and Innovation, European Commission); Alexandr Hobza (Directorate-General for Research and Innovation, European Commission); Erik Canton (Directorate-General for Research and Innovation, European Commission); Valentina Di Girolamo (Directorate-General for Research and Innovation, European Commission); Alessio Mitra (Directorate-General for Research and Innovation, European Commission); Océane Peiffer-Smadja (Directorate-General for Research and Innovation, European Commission); Julien Ravet (Directorate-General for Research and Innovation, European Commission) |
| Abstract: | This paper provides a rationale on why investing in research and innovation (R&I) matters for Europe. It describes the potential of R&I to strengthen EU's competitiveness, support a green and sustainable future, and build a fair European society. EU's R&I performance is presented, including R&I investments compared to global peers, EU's main strengths and weaknesses, and EU’s added value. The paper also highlights the importance of well-designed R&I policies, integral to the overall policy design, and provides pathways to strengthen current public and private efforts to reap the full potential of R&I. |
| Keywords: | Research and innovation, competitiveness, green economy, fair society, EU policy, public investment, private investment |
| JEL: | O32 O33 Q55 Q56 I28 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:eug:wpaper:ki-bd-24-002-en-n |
| By: | Stela Jorgji (University of Tirana); Jonida Teta (University of Tirana); Saeed Mousa (ESC [Rennes] - ESC Rennes School of Business); Vadim Ponkratov; Izabella Elyakova; Larisa Vatutina; Andrey Pozdnyaev; Tatiana Chernysheva (MSU - Lomonosov Moscow State University = Université d'État Lomonossov de Moscou [Moscou]); Elena Romanenko; Mikhail Kosov (PRUE - Plekhanov Russian University of Economics [Moscow]) |
| Abstract: | This study investigates the relationships between sustainable human capital management practices, ESG performance, ESG disclosure, and firm financial performance. Using a sample of 387 S&P 500 firms from 2013 to 2023 and a panel data regression approach, we examine the impact of training expenditure, workforce diversity and inclusion, pay equity, and employee benefits on ESG performance. We also explore the association between ESG performance and ESG disclosure, the effect of ESG performance on financial performance, and the moderating role of ESG disclosure in the ESG-financial performance relationship. Our findings reveal that sustainable human capital management practices have a positive and significant impact on ESG performance, which in turn positively influences firm financial performance. We also find a positive relationship between ESG performance and ESG disclosure, and that ESG disclosure moderates the ESG-financial performance link, with the positive association being stronger for firms with higher levels of ESG disclosure. This study contributes to the literature by offering an integrated approach to examine the relationships between sustainable human capital management, ESG performance, ESG disclosure, and financial performance, providing novel insights into the drivers and outcomes of corporate sustainability in the context of human capital management. |
| Keywords: | Sustainability, Effects of Globalization, Firm Financial Performance, ESG Disclosure, ESG Performance, Sustainable Human Capital Management |
| Date: | 2024–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05271946 |
| By: | Max Stick; Christoph Schimmele; Maciej Karpinski; Amélie Arsenault |
| Abstract: | This study used data from the 2020 General Social Survey to examine the social connectedness of immigrant women to Canadian society. The size and composition of immigrant women’s personal networks varied by their sociodemographic, immigrant-specific and residential characteristics, and by population group. Most subgroups of immigrant women had smaller social networks than their Canadian-born counterparts, although for some, the difference was small. Most of the differences between immigrants and Canadian-born women were related to weak ties, and for most subgroups there were no or fewer differences in the number of strong ties that composed their networks. Most subgroups of immigrant women had more inter-ethnic friends than Canadian-born women, even though their networks were mostly homogenous in ethnic composition. |
| Keywords: | Immigrant women, social networks, social capital, immigrant integration |
| JEL: | J23 M21 |
| Date: | 2024–04–24 |
| URL: | https://d.repec.org/n?u=RePEc:stc:stcp8e:202400400005e |
| By: | Gianmarco Daniele; Marco De Simoni; Domenico J. Marchetti; Giovanna Marcolongo; Paolo Pinotti |
| Abstract: | We show that credit constraints significantly increase the risk that firms are infiltrated by organized crime, defined as the covert involvement of criminal organizations in corporate decision-making. Using confidential data on criminal investigations, credit ratings, and loan histories for the universe of Italian firms, we find that a downgrade to substandard credit status reduces credit availability by 30% over five years and increases the probability of infiltration by 5%, relative to comparable firms. A local randomization design comparing firms just above and below the downgrade threshold confirms this result. The effect is pervasive across sectors and regions, but particularly strong in real estate, where the probability of infiltration rises by 10% following a downgrade. Infiltrated firms also display higher survival rates than other downgraded firms, despite similar declines in employment and revenues. These findings suggest that organized crime can serve as a financial backstop – sustaining non-viable businesses and potentially redirecting their strategies to serve criminal interests. |
| Keywords: | organized crime, firms, bank credit |
| JEL: | G32 K42 L25 O17 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12219 |
| By: | Francesco Molica; Francesco Cappellano; Teemu Makkonen |
| Abstract: | Since a few years, the international economic system has been experiencing growing fragmentation and uncertainty. However, research on Regional Innovation Systems (RIS) has yet to comprehensively engage with this phenomenon, despite its (spatial) significance. The paper contributes to addressing this gap, in particular by exploring the potential implications for RIS arising from the decline and disruptions of international knowledge flows associated with economic de-globalization. The study seeks to define a theoretical approach grounded in evolutionary geography to assess this trend. It applies such perspective to three types of RIS—metropolitan, old industrial, and peripheral—across five analytical dimensions that capture the structural and relational factors shaping RIS exposure and resilience to de-globalization. The discussion highlights that, in the face of knowledge and technological disruptions arising from international instability, metropolitan RIS may leverage their diversified knowledge bases, dense institutional frameworks, and strong global connectivity to successfully reconfigure external linkages; old industrial RIS may follow mixed trajectories, with the risk of deepening economic and policy lock-ins; while peripheral RIS—due to their reliance on external knowledge sources and limited endogenous innovation capacity—emerge as the most vulnerable. |
| Keywords: | De-globalization; Knowledge flows; Regional innovation system; Resilience |
| Date: | 2025–10–22 |
| URL: | https://d.repec.org/n?u=RePEc:ict:wpaper:2013/395461 |
| By: | Bassirou Gueye |
| Abstract: | The COVID-19 pandemic has had an unprecedented impact on the Canadian economy. This impact was uneven across different workers and businesses. However, there is little information available on how businesses were affected by and survived through the pandemic according to the characteristics of their owners, especially those owned by certain groups such as women and immigrants. These businesses tend to be more financially constrained, operating more in service sectors that require in-person contacts, and hence more vulnerable to the crisis. This article uses a linkage of the monthly business openings and closures with the Canadian Employer-Employee Dynamics Database and the Canada Emergency Wage Subsidy (CEWS) to study the survival rate and employment growth of businesses by gender, and immigrant status of owners. Specifically, the goal of this analysis is to determine the survival, closure and growth rates of women-owned (WOBs) and immigrant-owned (IOBs) businesses and compare them with men-owned (MOBs) and Canadian-owned (COBs) businesses, respectively. The results suggest that CEWS take-up rates were similar between MOBs and WOBs at the aggregate level but there were some gender differences across sectors. In addition, at the business sector level, WOBs and MOBs showed comparable survival rates. However, although the gap in survival rates between MOBs and WOBs decreased compared to the pre-pandemic period, WOBs were proportionally less likely to survive than MOBs in some sectors. Furthermore, the difference in survival rates between MOBs and WOBs were generally higher among businesses that did not receive the CEWS. Finally, WOBs that did not use the CEWS were more likely to close during the first year of the pandemic than MOBs. Compared to COBs, IOBs were more commonly found in service sectors and were less inclined to use the CEWS across most sectors. Immigrant-owned businesses were also generally smaller, with over three-quarters of them employing fewer than five employees. Regardless of CEWS usage, IOBs had lower survival rates than COBs across most sectors, especially among smaller businesses. However, the survival rate of IOBs was higher than that of COBs among businesses that did not use the CEWS in the accommodation and food services sector. Among businesses that did not use the CEWS, IOBs were more prone to closure in 2020 or 2022 and less likely to expand their workforce. |
| Keywords: | firm performance, size, diversification, scope, entrepreneurship, COVID-19 |
| JEL: | J23 M21 |
| Date: | 2024–05–22 |
| URL: | https://d.repec.org/n?u=RePEc:stc:stcp8e:202400500006e |
| By: | Christoph Ksouri-Gerwien (first name last name) (Ruhr University Bochum); Christian Vorbohle (first name last name of second author) (Paderborn University (workplace of second author)) |
| Abstract: | A key challenge for companies engaged in business model innovation is to prototype and evaluate new business models quantitatively. The complexity of this challenge is compounded when companies operate in business ecosystems, due to the need for joint value creation and mutual value capture. However, extant evaluation approaches, such as spreadsheets, are insufficient for addressing the complex, multilateral dynamics inherent to ecosystems. Though research indicates that system dynamics simulation represents a promising approach to overcoming this gap, its application in ecosystem settings remains an unexplored area of research. Therefore, we develop an actor-based modeling framework to leverage system dynamics for business model prototyping and evaluation from an ecosystem perspective. Furthermore, we present nine good design practices to guide effectively a business model’s system dynamics modeling process in the context of a business model innovation project. Our findings are derived from a two-and-a-half-year action design research project conducted in collaboration with two German industrial companies. Our research contributes to the existing body of knowledge on business model innovation, particularly regarding quantitative business model prototyping and evaluation prior to market implementation. (abstract of the paper) |
| Keywords: | Action design research, Business model innovation, Business ecosystems, System Dynamics (keywords) |
| JEL: | O30 |
| URL: | https://d.repec.org/n?u=RePEc:pdn:dispap:160 |
| By: | Chun Chet Ng; Wei Zeng Low; Yin Yin Boon |
| Abstract: | Despite accounting for 96.1% of all businesses in Malaysia, access to financing remains one of the most persistent challenges faced by Micro, Small, and Medium Enterprises (MSMEs). Newly established or young businesses are often excluded from formal credit markets as traditional underwriting approaches rely heavily on credit bureau data. This study investigates the potential of bank statement data as an alternative data source for credit assessment to promote financial inclusion in emerging markets. Firstly, we propose a cash flow-based underwriting pipeline where we utilise bank statement data for end to end data extraction and machine learning credit scoring. Secondly, we introduce a novel dataset of 611 loan applicants from a Malaysian lending institution. Thirdly, we develop and evaluate credit scoring models based on application information and bank transaction-derived features. Empirical results show that the use of such data boosts the performance of all models on our dataset, which can improve credit scoring for new-to-lending MSMEs. Lastly, we intend to release the anonymised bank transaction dataset to facilitate further research on MSMEs financial inclusion within Malaysia's emerging economy. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.16066 |
| By: | Philippe d’Astous; Vyacheslav Mikhed; Sahil Raina; Barry Scholnick |
| Abstract: | Using wealth windfalls from lottery winnings and matched employer-employee tax files, we compare the effect of additional wealth on the entrepreneurial activity of older and younger individuals. We find that additional wealth leads older winners (aged 55 to 64) to reduce business ownership and growth (as measured by sales, revenue, and employees). In contrast, extra wealth increases younger winners’ (aged 21 to 54) business ownership, but it has no effect on their business growth. The increase in business activity of a young winner does not offset the negative growth for an older winner, which may hurt economic growth. |
| Keywords: | Wealth; Age; Entrepreneurship; Retirement |
| JEL: | G5 G51 J22 L26 |
| Date: | 2025–10–21 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedpwp:101992 |
| By: | Rodrigo Barra Novoa |
| Abstract: | The study explores the evolution of Chile's industrial policy from 1990 to 2022 through the lens of state capacity, innovation and endogenous development. In a global context where governments are reasserting their role as active agents of innovation, Chile presents a paradox. It is a stable and open economy that has expanded investment in science and technology but still struggles to transform this effort into sustainable capabilities. Drawing on the works of Mazzucato, Aghion, Howitt, Mokyr, Samuelson and Sampedro, the study integrates evolutionary economics, public policy and humanist ethics. Using a longitudinal case study approach and official data, it finds that Chile has improved its innovation institutions but continues to experience weak coordination, regional inequality and a fragile culture of knowledge. The research concludes that achieving inclusive innovation requires adaptive governance and an ethical vision of innovation as a public good. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.20863 |
| By: | Wang, Gaowang; Zou, Heng-fu |
| Abstract: | In this article, we develop a growth theory by integrating the Weber-Schumpeterian spirit of capitalism into Romer's (1990) model of endogenous technological change. The spirit of capitalism influences innovation and long-run growth through capital accumulation and the reallocation of human capital, mediated by a price mechanism. It also helps prevent economic stagnation arising from a limited stock of human capital. Explicit solutions illustrate the qualitative effects of the spirit of capitalism on growth. Using calibrated parameters based on U.S. data, we find this effect is quantitatively significant, accounting for more than half of U.S. long-run growth. |
| Keywords: | Weber's Spirit of Capitalism; Schumpeter's entrepreneurial psychology; Endogenous Growth; Economic Stagnation; Heterogeneous Ability |
| JEL: | E1 O3 O4 |
| Date: | 2025–10–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126518 |