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on Small Business Management |
| By: | Evgenidis Anastasios; Fasianos Apostolos; Papapanagiotou George; Lazarou Nicholas Joseph (European Commission - JRC) |
| Abstract: | Recent advances in Artificial Intelligence (AI) and the growing role of these technologies in enhancing productivity have attracted significant research and policy attention, yet the determinants of AI innovation remain relatively understudied. This study contributes to this emerging literature by examining the role of public R&D spending in fostering AI-related innovation across EU regions. Our analysis draws on bibliographic information from all patents registered at the European Patent Office (EPO) between 1980 and 2023. Using textual analysis of patent abstracts, we identify the share of AI patents among total patents and construct a novel dataset that allocates AI patents to NUTS-2 regions based on inventor addresses. This regional mapping enables us to assess the impact of public R&D funding on AI innovation while addressing endogeneity concerns by instrumenting regional public R&D spending with national defence-related R&D expenditure. The results show that public R&D plays a significant role in driving AI innovation: a 1% increase in public R&D spending raises AI patent output by approximately 0.27%. These findings speak directly to Europe’s innovation policy framework, providing evidence that public investment remains a powerful lever for stimulating AI development. They also reinforce the rationale for sustained funding under Horizon Europe, the Digital Europe Programme, and national innovation strategies aimed at building technological and reducing regional disparities in AI advancement. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:termod:202512 |
| By: | Jian, Wenze; Lu, Hang; Yang, Zimo; Zhong, Ziqi |
| Abstract: | Using data on Chinese A-share listed firms and regions from 2011–2023, this paper employs a difference-in-differences (DID) framework to evaluate the productivity returns to artificial intelligence (AI) application from both firm-level and societal perspectives. The findings are as follows: First, AI intensity significantly increases firms' total factor productivity (TFP). Second, AI intensity significantly increases social TFP. Third, green financial innovation exerts a significant positive mediating effect on the pathway from AI intensity to firm TFP. Fourth, green financial innovation also partially mediates the pathway from AI intensity to social TFP. Substantively, the paper links micro-level firm transformation with macro-level regional performance, providing empirical evidence and policy implications for understanding the transmission mechanism from digitalization to greening to high-quality growth. |
| Keywords: | AI intensity; TFP; green financial innovation |
| JEL: | F3 G3 J50 |
| Date: | 2026–02–28 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:130473 |
| By: | Matěj BAJGAR; Keiko ITO; Jonathan TIMMIS |
| Abstract: | We study how R&D spillovers propagate through buyer–supplier networks. The R&D tax credit for large firms in Japan—originally based on incremental increases in R&D expenditures—was revised in 2003 to cover total R&D expenditures. This reduced the cost of marginal R&D outlays for large firms below the ceiling on R&D expenditure, but not for large firms above the ceiling or for SMEs. In a difference-in-differences setting, we find that the reform increased R&D expenditure, innovative output and sales of the treated firms. We further present evidence of positive forward spillovers to downstream firms: the reform led to productivity increases among firms that had a greater share of suppliers treated by the reform. Conversely, we do not find any evidence of backward spillovers to upstream firms. We also do not find any robust effects of the reform on the R&D expenditure and economic performance of Japanese firms' overseas affiliates. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25127 |
| By: | Yuji HONJO; Arito ONO; Daisuke TSURUTA |
| Abstract: | This study examines how regional financial development influences new firm creation and growth in Japan. Using prefecture–year panel data from 2007 to 2023, we distinguish between regional equity and debt capital, proxied by the number of investment limited partnerships and bank branches, respectively. We find that regions with greater equity capital have more newly founded firms and initial public offerings, and provide suggestive evidence of stronger sales growth among young firms (firms within five years of establishment), whereas regional debt capital has no significant effect. Moreover, regional equity capital is associated with higher employment shares of medium- and large-sized young firms and lower shares of small ones, implying that regional equity capital promotes a compositional shift in new firm creation toward larger entrants. These findings are robust to potential endogeneity concerns and to alternative measures of financial development. |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:26005 |
| By: | Borsekova, Kamila; Korony, Samuel; Rodríguez-Pose, Andrés; Styk, Michal; Westlund, Hans |
| Abstract: | The importance of institutions and innovation for regional development is well established. How these two factors interact under different historical legacies and urban-regional contexts remains, however, insufficiently understood. This paper identifies which combinations of institutional and innovation indicators most effectively classify regions into distinct developmental archetypes, revealing critical thresholds that redirect regional trajectories. Employing decision-tree analysis on 233 EU NUTS-2 regions, we analyse 15 indicators spanning institutional quality, technological readiness, business sophistication, and innovation. This methodology uncovers non-linear relationships that traditional approaches cannot capture. The findings demonstrate that institutional quality acts as a necessary condition for innovation-led growth. High-performing regions, predominantly in Western and Northern Europe, benefit from robust institutions and strong innovation outputs. Many lower-performing regions, particularly in Central and Eastern Europe, exhibit innovation potential but are constrained by governance deficits. By integrating institutional and innovation indicators within a single analytical framework, we underscore how addressing governance and innovation in tandem can result in balanced and sustainable growth across Europe. |
| Keywords: | regional development; institutions; innovation; decision tree modelling; regional competitiveness |
| JEL: | J1 |
| Date: | 2026–02–28 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:130741 |
| By: | Lei, Xinyuan; Shi, Guanming; Qiu, Huanguang; Wang, Shukun |
| Abstract: | Governments worldwide have been increasingly focused on how to foster innovation through regulatory frameworks, particularly in developing countries. In 2016, China revised the "Seed Law, " marked a shift from a control-based to a market-oriented framework. This study uses a difference-in-differences strategy to examine the impact of deregulation reform on firms' innovation in China's seed industry from 2013 to 2021. The results reveal a significant positive effect on innovation. We also found that the reform had a significantly greater impact on innovation quantity for larger firms compared to smaller ones, with results remaining robust across extensive checks. Mechanism analysis suggests that for large firms, the increase in approved varieties is driven by both short-term factors such as expanded approval channels and technology licensing, and long-term R&D investments. In contrast, for small firms, it primarily stems from short-term factors, with limited impact from long-term R&D efforts. Additionally, the reform increased innovation quantity without compromising quality for smaller firms, while further enhancing innovation quality among larger firms. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360608 |
| By: | Nindl Elisabeth (European Commission - JRC); Napolitano Lorenzo (European Commission - JRC); Confraria Hugo (European Commission - JRC); Rentocchini Francesco (European Commission - JRC); Fako Peter (European Commission - JRC); Ince Ela (European Commission - JRC); Georgakaki Aliki (European Commission - JRC); Gavigan James (European Commission - JRC); Tuebke Alexander (European Commission - JRC) |
| Abstract: | The 2025 edition of ‘The EU Industrial R&D Investment Scoreboard’ monitors and analyses industrial research and development (R&D) investment trends in the context of the EU’s 3% of GDP R&D investment policy target and the related policy initiatives by the Competitiveness Compass. The 2025 Scoreboard analyses the world's top 2 000 industrial R&D investors, responsible for over 90% of R&D performed by the business sector globally, based on the financial information in the latest published audited accounts of firms. Following the introduction, chapter 2 analyses the main global trends and benchmarks the EU’s top R&D investing companies against global competitors. Chapter 3 provides details by sector, and chapter 4 does a deep-dive on a subsample of the EU’s top 800 R&D investing firms. Chapter 5 analyses R&D internationalisation and chapter 6 key green technologies. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc144638 |
| By: | Yueyuan Ma |
| Abstract: | Using firm-level data from the US Census Longitudinal Business Database (LBD), this paper exhibits novel evidence about a wave of specialization experienced by US firms in the 1980s and 1990s. Specifically: (i) Firms, especially innovating ones, decreased production scope, i.e., the number of industries in which they produce. (ii) Innovation and production separated, with small firms specializing in innovation and large firms in production. Higher patent trading efficiency and stronger patent protection are proposed to explain these phenomena. An endogenous growth model is developed with potential mismatches between innovation and production. Calibrating the model suggests that increased trading efficiency and better patent protection can explain 20% of the observed production scope decrease and 108% of the innovation and production separation. They result in a 0.64 percent point increase in the annual economic growth rate. Empirical analyses provide evidence of causality from pro-patent reforms in the 1980s to the two specialization patterns. |
| Keywords: | specialization, production scope, R&D, intellectual property rights, patent trade, endogenous growth |
| JEL: | E23 L22 O32 O34 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:25-77 |
| By: | Jose Joaquin Lopez (University of Memphis); Ashantha Ranasinghe (University of Alberta) |
| Abstract: | We analyze micro-scale businesses in Mexico and find large gender gaps in sales, profit, and access to finance. Accounting for differences in education and entrepreneurial commitment, women-owned firms perform worse and receive less financing than comparable men-owned firms. We interpret these patterns in a model economy where individuals with different managerial abilities choose between wage work and entrepreneurship, while women face discrimination in labor and credit markets. The model replicates observed gender differences in occupations and capital use. Equalizing credit access sharply reduces gender gaps in entrepreneurial earnings, but implies only modest aggregate gains on productivity and output. Size-dependent taxes or income subsidies generate smaller impacts or far more costly gains. |
| Keywords: | informality; gender; micro-firms; misallocation; finance |
| JEL: | J16 O10 O40 O50 |
| Date: | 2025–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:ris:albaec:021996 |
| By: | Sciarra Carla (European Commission - JRC); Caldarola Bernardo (European Commission - JRC); Domnick Clemens (European Commission - JRC); Hervas Fernando (European Commission - JRC) |
| Abstract: | This policy brief provides a digest of the scientific evidence and policy implications of the European Commission’s Conference on Corporate R&D and Innovation (CONCORDi 2025), which took place in Seville on 24-26 September 2025. The conference focused on strategic technologies, industrial policies, economic competitiveness, and sustainability, and it featured 63 academic presentations, 2 keynote talks, 2 policy round tables, 4 policy special sessions, and a science-for-policy debate. The conference highlighted the role of strategic technologies, such as AI, in helping Europe overcome the mid-tech trap, while also addressing their heterogeneous effects on labor markets. It emphasised the necessity for Europe to avoid low-productivity R&D and the importance of large R&D investors in driving higher returns through riskier and higher quality projects. This policy brief underscores the significance of supporting universities and public research centers in long-term research and fostering collaboration with firms. It addresses the incompleteness of the EU single market and calls for more capital market policies and integration efforts to remove barriers preventing firm growth. The integration of green and digital strategies is identified as essential for sustainable innovation, requiring complementary investments and institutional support. The brief discusses the importance of tailored industrial policies with directionality to accelerate transitions and strengthen technological sovereignty while minimizing negative side effects. The brief concludes by remarking that further research is needed to understand the enabling conditions for strategic technologies and to improve the measurement of policy impacts, ensuring adaptive and evidence-based policymaking. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc144677 |
| By: | A. Giazitzoglu; R. Smith; N. Vershinina (Audencia Business School); M. Radu-Lefebvre (Audencia Business School) |
| Abstract: | This SI builds on an expanding literature looking at entrepreneurial masculinities (See Smith, 2010; Hechavarria, & Ingram, 2016; Giazitzoglu & Down, 2017; Jernberg, Lindbäck, & Roos, 2020; Smith, 2021; Smith, 2022; Balkmar, Lindvert, & Ljunggren, 2024; Hytti, Karhunen, & Radu-Lefebvre, M., 2024; Forster-Holt & Davis, 2025). This literature shows the heterogeneity that defines entrepreneurial masculinities. There are multiple configurations of masculinities that are expressed by men (and women) within entrepreneurial processes, as entrepreneurs develop enterprises in particular contexts. |
| Keywords: | gender, entrepreneurship, masculinities |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05384071 |
| By: | Laura Chioda; Paul Gertler; David Contreras-Loya; Dana R. Carney |
| Abstract: | We study the medium and long term impacts of Skills for Effective Entrepreneurship Development (SEED), a 3-week entrepreneurship training program for secondary school students in Uganda. The mini-MBA, modeled after business school curricula, was implemented as a randomized field experiment with a nationally representative sample of 4, 402 youth. After four years, the training improved both hard and soft skills. SEED graduates became more effective negotiators and communicators and exhibited improved self-efficacy, stability, plasticity, and stress management. In the medium run, treated youth were more likely to start enterprises and more successful in ensuring their survival, thereby gaining greater entrepreneurial experience. Their ventures were also of higher quality: more likely to be formal, have employees, be in collaboration with other entrepreneurs, and use effective business management practices. With 52% of the sample still enrolled in post-secondary education, we find suggestive evidence that businesses led by the treatment groups performed better. After nine years, business ownership converged between treatment and control groups as control ownership rates doubled. However, SEED graduates maintained their edge in terms of business quality and operated firms with 20% higher revenues and 16% higher profits, without corresponding increases in capital or labor inputs, consistent with higher total factor productivity. Entrepreneurial success was achieved through the adoption of better business practices and experimentation, with soft skills related to entrepreneurial mindset playing a complementary role. SEED generated high returns on investment: the present discounted values of SEED-induced business and total earnings equal 20 and 27 times program costs, respectively. |
| JEL: | C93 I20 J23 J24 M13 M53 O15 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34637 |
| By: | Mannarino Valentin |
| Abstract: | This paper applies machine learning techniques to predict which manufacturing firms in Colombia are likely to become exporters, using data from the Encuesta Anual Manufacturera (EAM) and Encuesta de Desarrollo e Innovación Tecnológica (EDIT) for the period 2015–2019. The objective is to estimate each firm’s “distance to export” through a probability score learned from the characteristics of existing exporters. Among the different algorithms tested, Logit with LASSO regularization delivers the best predictive performance, correctly identifying nearly three out of four actual exporters. Building on these predictions, the study introduces an exporting score, a probability measure that ranks firms by their proximity to the export margin. This score captures heterogeneity among non-exporters, anticipates entry and exit dynamics, and highlights sectoral and geographic clusters of latent export potential. In addition, the analysis shows that a set of firm level characteristics consistently emerge as the most relevant predictors across models: importer status, firm size, and combined spillovers, complemented by operational variables such as value added, inventories, and quality certification. The findings offer valuable insights for export promotion policies, enabling more targeted support for firms likely to enter international markets. |
| JEL: | F1 L2 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:aep:anales:4816 |
| By: | Paul David Richard Griffiths (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School); Abhishek Mukherjee (University of Waikato [Hamilton]); Paresha N Sinha (University of Waikato [Hamilton]) |
| Abstract: | Purpose -This study aims to investigate the diffusion of financial technology (Fintech) in Vietnam by applying a service ecosystem perspective. It reconsiders traditional innovation diffusion approaches by focusing on the interplay of services, institutions and ecosystem dynamics across distinct Fintech service domains. Design/methodology/approach -This study employed a qualitative approach using the Knowledge Cafe method for data collection. Transcripts were coded and analysed thematically across different diffusion phases. Findings were validated through a half-day workshop with banking professionals. Findings -Government regulation in Vietnam has enhanced trust within the Fintech ecosystem, driving digital transactions and financial inclusion. However, as the regulations are heavily focused on the payment services, an uneven diffusion of innovation across the seven Fintech service domains is evident. Practical implications -Regulation can accelerate Fintech diffusion in early stages, as seen in Vietnam's payments sector, but may hinder innovation as technologies mature. Policymakers must adapt regulatory frameworks to balance stability with ongoing innovation. Originality/value -This study advances theory by analysing Fintech diffusion by service domain rather than as a unified sector and by extending the innovation diffusion theory to an emerging market context. Applying a service ecosystem lens reveals the multi-level dynamics shaping Fintech adoption, offering a more nuanced understanding across domains. |
| Keywords: | Vietnam, Innovation diffusion, Fintech, Financial services, Emerging market institutions |
| Date: | 2025–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05398969 |
| By: | Atsushi KAWAKAMI; Yasuhiro KIUCHI; Tsutomu MIYAGAWA |
| Abstract: | Product diversification is an important issue in management science and industrial organization. Many studies have argued that product diversification is related to the scale of headquarters, and productivity studies find that multi-product firms have higher productivity than single-product firms. Our study examines the role of headquarters in product diversification using the Business Survey of Japanese Business Structure and Activities (BSJBSA). We focus not only on the scale of headquarters but also on their efficiency, which varies across industries. In manufacturing sectors such as electric appliance equipment, electric measuring instruments, and computer industries, many firms have highly efficient headquarters. Our empirical results show that headquarters efficiency contributes to product diversification in firms with higher TFP. Although increasing headquarters scale induces product diversification, its effect becomes negative once it exceeds a certain level. Our findings imply that government support for product innovation or diversification should consider not only the growth of new products but also the capacity and efficiency of headquarters. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:eti:rdpsjp:25031 |
| By: | Banri ITO; Eiichi TOMIURA |
| Abstract: | This paper examines the effect of initiating cross-border data flows on firm productivity, using original survey data from Japanese manufacturing and service firms collected in 2019 and 2021, merged with annual productivity measures over 2019–2022. The survey identifies new entrants into cross-border data transfers, enabling a difference-in-differences design that compares “switchers†to firms that either do not collect data or collect data only domestically. We estimate the average treatment effect on the treated using regression-adjustment, inverse probability weighting, and doubly robust AIPW DID estimators, controlling for exporter status, multinational affiliation, R&D intensity, and ICT cost intensity. The results show that firms with higher initial productivity are more likely to start transferring data internationally, which is consistent with self-selection patterns documented in the export- and FDI-related literature. Entry into cross-border data flows is associated with significant productivity gains, which become particularly pronounced in the year after entry. These findings provide rare firm-level evidence from Japan, while also offering broader insights for data-governance debates by highlighting the potential productivity costs of overly restrictive cross-border data regulations. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25125 |
| By: | Akira YAMAGUCHI; Keigo HOSOI; Kai FUKUNAGA |
| Abstract: | In recent years, the Japanese government has adopted a growth strategy centered on wage increases, yet domestic evidence on whether innovation drives up wages remains scarce. This paper estimates the impact of innovation on wages using labor productivity and patent applications, based on Japanese firm panel data. To control reverse causality, we employ a System GMM dynamic panel estimation. Furthermore, we examine heterogeneity in effects across firms using an interaction term with the Labor Cost Suppression Dummy (LCSD). Key findings are that labor productivity consistently exerts a positive effect on wages. Conversely, the coefficient for the interaction term LCSD × productivity is negative and significant, indicating that even with equivalent productivity growth, wage pass-through weakens in firms with a labor cost suppression orientation. These results suggest that achieving sustained wage increases requires policy responses that combine innovation promotion with rent distribution design within firms. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:eti:rpdpjp:25020 |
| By: | Iacovone, Leonardo; McKenzie, David; Maloney, William F. |
| Abstract: | A randomized experiment tested the effectiveness of individual and small group–based consulting services on firms in the Colombian auto parts industry, finding improvements in management and firm performance over three to four years. This paper uses administrative data to track these firms for up to a decade. Firms in the group consulting intervention are more likely to survive, have higher employment, and have increased sales and profits by approximately 50 percent. This longer-term growth appears to in part come through increased exporting as well as persistent management improvements. The more expensive individual consulting has smaller and not statistically significant long-run impacts. |
| Date: | 2026–01–07 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11278 |
| By: | Botello, Hector |
| Abstract: | This study examines agricultural firm resilience during COVID-19 using administrative data covering 45, 127 firms in Ecuador from 2012-2023. We employ difference-indifferences methodology to analyze pandemic impacts across sectors and firm characteristics. We find that agricultural firms demonstrated initial pandemic resilience in 2020, outperforming other sectors by 10.3 percentage points. However, this advantage reversed during 2022-2023, when agricultural firms experienced delayed vulnerability with sales declining 13.0 percentage points more than other sectors. Within agriculture, small firms (10-49 employees) faced the worst outcomes, performing worse than both micro and large enterprises. Export-oriented firms sacrificed short-term sales performance to preserve market relationships, ultimately achieving better survival rates despite revenue losses. These temporal patterns reveal that agricultural resilience varies significantly across firm characteristics and time periods. The findings challenge uniform sectoral policies and suggest targeting small agricultural firms during extended recovery periods. Our results contribute to organizational resilience theory by demonstrating that firm-level characteristics matter more than sectoral membership for crisis outcomes. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360606 |
| By: | Galilea, Manuel; Farazi, Subika; Mare, Davide Salvatore |
| Abstract: | Understanding the drivers of credit constraints is essential for fostering private sector development and firm growth. This study examines the channels through which electronic payments influence firm credit constraints across 101 economies. It explores heterogeneity at the firm and aggregate levels to identify key policy and environmental factors that shape this relationship. The findings indicate that payment digitalization plays a critical role in alleviating firm credit constraints, particularly for small firms and in economies with weaker credit infrastructure and lower levels of financial development. These results support the view that electronic payments help reduce information asymmetries between firms and lenders, thereby improving lending opportunities. |
| Date: | 2026–01–09 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11287 |
| By: | Álvarez, Inmaculada C.; Barbero, Javier; Orea, Luis; Rodríguez-Pose, Andrés |
| Abstract: | Most studies of institutional quality and regional growth assume uniform effects across territories. However, this may mask crucial regional heterogeneity, with direct policy implications. We use a latent class framework applied to 230 EU regions over 2009-2017 to identify institution-driven regional parameter groups, and to examine both average effects and catching-up effects associated with changes in the institutional environment. We demonstrate that institutional quality generates highly variable returns to investment in physical capital and innovation. Nordic and Central European regions show highest returns to physical capital and R&D investment, whereas less-developed regions benefit most from education spending. Crucially, we find that improving government quality not only raises average returns but also promotes territorial cohesion. By contrast, regional autonomy shows limited impact on returns. Our findings challenge the one-size-fits-all approach to cohesion policy and indicate that cohesion policy should explicitly promote institutional improvements in addition to capital deployment. |
| Keywords: | institutional quality; European funds; investment; regional development |
| JEL: | E61 H54 R11 |
| Date: | 2025–12–24 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:130747 |
| By: | Fritsch, Michael; Greve, Maria; Wyrwich, Michael (University of Groningen) |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:gro:rugfeb:2025010-i&o |
| By: | Elias Julio Jorge; Elias Forzani Agustin |
| Abstract: | The agricultural sector in Argentina has undergone a profound transformation over the past fifty years, driven by a series of innovations aimed at enhancing productivity and quality. This paper focuses on the Province of Santa Fe, one of Argentina’s main agricultural regions, and examines how innovation unfolded through the case of Federico Trucco, CEO of Bioceres, and the institutional networks that supported this process, particularly the Argentine No-Till Farmers Association (AAPRESID). Drawing on David Galenson’s economic approach to creativity, which distinguishes between conceptual and experimental innovators, we analyze Trucco’s trajectory, his investment in human capital, and the innovations he has led, notably the development of HB4 technology, the first commercially available GMO wheat in the world. Our findings highlight the role innovators and, more broadly, the importance of entrepreneurial talent, risk-taking, and institutional networks in fostering agricultural transformation. The case of Santa Fe illustrates that even in a traditional sector like agriculture, innovation can thrive and position a region at the global frontier. |
| JEL: | O31 O32 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:aep:anales:4797 |
| By: | Albora Giambattista (European Commission - JRC); Benoit Florence; Caldarola Bernardo (European Commission - JRC); Di Girolamo Valentina; Diodato Dario (European Commission - JRC); Napolitano Lorenzo (European Commission - JRC); Sciarra Carla (European Commission - JRC) |
| Abstract: | Over the past 25 years, the world has witnessed a significant surge in patenting activity, underscoring the crucial role of frontier technologies in driving economic growth and competitiveness. While the EU remains a leading global innovator, its competitive edge is under threat. To address this challenge, the EU must create a vibrant industrial ecosystem that nurtures innovation. Advanced Materials, with their potential to transform industries and enable breakthrough innovations, are a crucial component of this ecosystem, and offer a unique opportunity to strengthen the EU's economic growth, competitiveness, strategic autonomy, and digital and green transformation. This report is intended to lend support to the implementation of EU policies aimed at revitalising the EU economy – such as the forthcoming Advanced Materials Act – by identifying areas where Europe can enhance its technological leadership. The analysis is grounded in the Economic Complexity approach, which provides a framework to analyse the existing technological capabilities of the EU, and to identify untapped diversification opportunities for the Member States and their regions. The results of this report suggest that the EU leadership in many traditional technologies is threatened by rising innovation activities by its main competitors, mainly China and the US. To close its innovation gap, the EU can leverage its existing capabilities to enhance competitiveness in Advanced Materials, particularly in areas such as Biomaterials, Glass, and Cements. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc144431 |
| By: | Sillero Illanes Carmen (European Commission - JRC); Durth Melanie; González Raul; Castilla Barea Juan C.; Caro Gómez Esperanza |
| Abstract: | This report documents the findings of a review of the space ecosystem of Andalusia (Spain), carried out in 2025 within the framework of REGDUALOSA (Regions, Dual Use, Open Strategic Autonomy), an exploratory research initiative of the Joint Research Centre of the European Commission. The review was developed in partnership with the Regional Ministry of Industry, Energy and Mining and explores some of the policy pathways Andalusia might take to develop the space domain as a dual-use industry, thereby boosting regional competitiveness and contributing to European strategic autonomy. The analysis adapts the POINT methodology developed by the JRC, combining documentary research, expert interviews, and stakeholder consultations. The study positions Andalusia within a volatile global landscape in which competitiveness, security, defence, and preparedness have emerged as central priorities of the European Union. Recent geostrategic tensions and the imperative of enhancing European defence capabilities, as underscored in the White Paper on European Defence Readiness 2030 and the Readiness 2030 initiative, highlight the urgency of consolidating the European Defence Technological and Industrial Base (EDTIB). Andalusia, home to Spain’s second-largest aerospace cluster, aspires to develop its space domain, while diversifying beyond its traditional reliance on aerostructures. The report advances seven lines of action: scaling up the industry through defence integration and international expansion; streamlining access to finance; reinforcing industrial competitiveness; strengthening multi-level governance; fostering demand-driven innovation; and addressing talent shortages. Furthermore, it incorporates preparedness as a driver of transformative innovation and explores its interlinkages with dual-use technologies, promoting policy experimentation to address responses to climate-related disasters and hybrid threats. The report thus provides a timely foundation for Andalusia’s forthcoming steps. The participation of the Regional Government of Andalusia in the Experimentation Journey on Territorial Preparedness, under the Preparatory Action Innovation for Place-Based Transformation led by the Joint Research Centre and financed by the European Parliament, constitutes a unique opportunity to translate the insights of this report into new initiatives in cooperation with other European territories. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143531 |
| By: | Buyukyazici, Duygu; Coll-Martínez, Eva |
| Abstract: | This study provides the first conceptual and empirical framework to evaluate the cultural and creative industries’ (CCIs) skill composition by utilising the revealed skill requirements method. First, it identifies the most important skills within and across the CCIs. Second, it maps their spatial distribution and links them to the stage-sensitive regional specialisation of the CCIs. Finally, it formalises a framework to assess the specialisation potential patterns. Moving beyond a generic treatment of the CCIs, this study develops a comprehensive, bottom-up approach to regional CCIs policy, focusing on place-specific capabilities and untapped potential of regions by comparing their skill endowments with observed CCIs’ specialisation patterns. |
| Keywords: | complexity; creativity; cultural and creative industries; human capital; regional specialisation; skill relatedness |
| JEL: | B52 J24 R11 |
| Date: | 2026–01–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:130094 |
| By: | Schilirò, Daniele |
| Abstract: | This study explores the transformative role of financial technology (FinTech) within the broader context of innovation ecosystems and its interconnections with financial inclusion. Financial technology has grown significantly in recent years. It encompasses sectors such as digital payments, blockchain, artificial intelligence, regulatory technology and insurance technology, reshaping the operational dynamics of financial systems, improving efficiency, competition, and transparency. In turn, the rapid adoption of data-intensive technologies introduces new regulatory and ethical challenges. Following an approach based on an examination of scientific literature the study first emphasizes the need to move beyond a technology-centric view and adopt an ecosystem-oriented perspective. This view highlights the interaction between technological advances, institutional frameworks, and market structures, as well as their impact on innovation. The analysis also shows that global connections and collaborations within FinTech ecosystems favor the development and diffusion of new innovations. Furthermore, FinTech and its ecosystem promote financial inclusion by reducing barriers to entry, making access to services affordable, and tailoring solutions to diverse customer needs. This benefits disadvantaged and underbanked populations, thereby expanding economic participation and reducing inequality. Given that current literature does not explicitly highlight the interrelationship among FinTech, innovation ecosystems, and financial inclusion, this study — without pretending to be exhaustive — underscores their interconnection. It demonstrates how collaborative technological innovation can expand access to financial services, despite the challenges and problems that remain to be solved. The article concludes that financial technology should be understood as a systemic force with profound implications for economic transformation, regulatory adaptation, the democratization of access, and the reduction of inequality. |
| Keywords: | Fintech; digital technologies; financial inclusion; innovation ecosystems; technological innovation; regulation |
| JEL: | F30 G2 G32 O31 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127045 |
| By: | Behr, Daniela Monika; Xi, Yue |
| Abstract: | Despite significant strides toward gender equality, women around the world continue to encounter systemic obstacles that hinder their entrepreneurial success. This paper systematically reviews the literature on the barriers female entrepreneurs face and the solutions proposed to overcome these challenges. It discusses institutional factors, financial factors, human capital factors, and social and cultural factors. The literature overview is complemented by a series of stylized facts that illustrate how overcoming some of these existing barriers is correlated with improved women’s entrepreneurship and female labor force participation, drawing on the World Bank’s Women, Business and the Law database as well as the World Bank’s Enterprise Surveys. The findings underscore the need for creating an enabling environment where women can thrive as entrepreneurs. |
| Date: | 2026–01–07 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11281 |
| By: | Navarro Ana Inés; Camusso Jorge; Varvello Juan Cruz |
| Abstract: | We study how Argentine AgTech startups communicate sustainability on their websites and whether misalignment between symbolic and substantive actions (“greenwashing”) relates to their economic performance. We code web disclosures into symbolic and substantive actions, construct firm-level scores for each dimension, and combine them into a greenwashing measure. Using interval regressions for revenues and probit models for foreign-market concentration, we find that greenwashing is negatively and significantly associated with revenues: customers appear to penalize symbolic claims that are not backed by substantive actions. Indeed, decomposition analysis shows that greater symbolic communication reduces revenues, whereas declared substantive actions have no statistically discernible effect. On the other hand, the relationship between the revenues and the level of greenwashing is non-linear—small amounts of greenwashing induce positive effects on revenues but these turn negative as greenwashing rises—and is heterogeneous by firm age: younger startups are more strongly penalized, consistent with reputational mechanisms. By contrast, stronger symbolic communication increases the likelihood that AgTech firms concentrate sales in foreign markets. Overall, the results underscore the economic costs of misaligned sustainability communication and the value of credible, action-based disclosure. |
| JEL: | Q01 Q10 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:aep:anales:4824 |
| By: | Felix ROTH (European Commission); Alessio MITRA |
| Abstract: | This paper examines the drivers of EU labour productivity before and after the 2007 financial crisis, across goods and services sectors, tangible and intangible assets, and Information and Communication Technologies (ICT) and non-ICT tangibles. |
| Keywords: | Economics, competitiveness, growth, ICT, labour productivity |
| JEL: | O32 O33 O38 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:eug:wpaper:ki-01-25-006-en-n |
| By: | García-Toledo, Zaira (Universitat Jaume I); Conesa, David (Universitat de València); Crespo, Joan (Universitat de València); Tortosa-Ausina, Emili (Universitat Jaume I, IIDL and Ivie) |
| Abstract: | University rankings predominantly focus on outputs while neglecting the efficiency with which institutions convert resources into outcomes. We contribute to addressing this limitation by analyzing the determinants of university efficiency using a Bayesian stochastic ray frontier model applied to 47 Spanish public universities over the 2016–2021 period. Unlike traditional approaches, our methodology jointly estimates efficiency and its determinants in a single stage. We adopt a multi-output framework encompassing the three university missions: teaching, research, and knowledge transfer. Using backward stepwise selection with the deviance infor- mation criterion, we identify key efficiency determinants including the average department size, number of campuses, academic staff characteristics, and multi-province location. Results reveal substantial efficiency variations across universities, with approximately half showing positive efficiency changes over the period. The Bayesian approach provides full efficiency distributions rather than point estimates, enabling robust statistical comparisons. Our findings offer valuable insights for university managers and policymakers seeking to enhance institutional performance beyond traditional output-based rankings. |
| Keywords: | determinants, efficiency, Bayesian, education, stochastic frontier, universities |
| JEL: | C61 J24 R11 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:eec:wpaper:2517 |
| By: | Chen, Luoye; Hou, Yun; Xiong, Xueshan |
| Abstract: | We empirically investigate the impact of migration flows induced by the hukou reform on agricultural innovation in terms of quantity and quality. Utilizing the 2014 hukou reform in China as a policy shock, we observe a 23.1% decrease in agricultural patent counts, with no significant effect on disruptiveness. This decline is primarily concentrated in urban areas and is reflected in a reduction in the extensive margin, specifically the number of active innovators. The decrease can be attributed to two interrelated mechanisms: the loss of skilled agricultural workers who possess critical tacit knowledge and a diminished entry of agribusiness due to resource reallocation. The findings highlight the unintended consequences of institutional policies, suggesting that urbanization initiatives may inadvertently impede agricultural technological progress when human capital externalities are insufficiently addressed. |
| Keywords: | Productivity Analysis, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361180 |
| By: | Giovanna Ciaffi; Matteo Deleidi; Mariana Mazzucato |
| Abstract: | This paper investigates the macroeconomic effects of public R&D investment in the US economy from 1947 to 2018, employing alternative empirical approaches based on Structural VARs, pure shocks derived from a counterfactual VAR, and Instrumental-Variable Local Projections. The analysis provides robust evidence consistent with the findings of Deleidi and Mazzucato (2021), confirming that public R&D exerts strong and persistent expansionary effects on economic activity. Examining the fiscal policy transmission mechanisms, the results indicate that public R&D generates significant crowding-in effects on private R&D, non-residential investment, and consumption, thereby supporting the existence of a Supermultiplier effect. When total public R&D is broken down into military and civil components, and pure shocks are estimated, both spending categories yield statistically similar macroeconomic effects. Finally, sub-sample analyses confirm our findings and show that the magnitude of public R&D multipliers remains broadly comparable over time. Overall, the findings highlight the macroeconomic importance of public R&D as an effective tool for sustaining long-term economic growth. |
| Keywords: | Public R&D; Fiscal multipliers; Mission-Oriented Innovation policy; Structural VAR; Local projections |
| JEL: | C32 E11 E62 O30 O25 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:imk:fmmpap:122-2026 |
| By: | Acquah-Sarpong, Richard |
| Abstract: | Are firms better off when two adjacent regions with historically the same minimum wage experience a divergence in the minimum wage? We answer this question by investigating Oregon’s tiered minimum wage policy, implemented in 2016, and examining how introducing a regional wage difference for firms within and outside the Portland urban growth boundary (UGB) impacts firms’ credit default. We find that for firms in the Portland Urban Growth Boundary (UGB) with the higher minimum wage, introducing the tiered system led to a 3.4% increase in their credit scores relative to the credit scores of firms in the surrounding region with a lower minimum wage. This result implies a decrease in the average duration of delayed payment by 3.7 days. Our findings are particularly significant among small, independent, private firms and those outside the low-wage, high-violation industries. Although the intended purpose of the tiered policy was to alleviate financial pressure on firms in lower wage areas, it presents a net advantage to firms in higher-wage Portland UGB. Rather than reducing burdens for firms in surrounding areas that pay lower wages, the tiered policy has unintentionally placed them at a comparative disadvantage. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361113 |