|
on Small Business Management |
|
Issue of 2026–04–20
sixteen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | NISHIMURA, Junichi; OKAMURO, Hiroyuki |
| Abstract: | With the progress of decentralization of policymaking since the 2000s, local innovation ecosystems have attracted worldwide attention. This study examines whether R&D support provided by diverse policy agents within a local ecosystem enhances firm innovation performance. We pay special attention to 1) a multilevel policy mix of national/prefectural and city governments, 2) a policy instrument mix of hard (financing) and soft (non-financing) support, and 3) a public-private partnership of governments and local supporters. Our estimation results based on an original firm-level survey show that R&D support from city governments, particularly soft support such as networking, advice and consultation, significantly contributes to firm innovation performance. Local supporters’ R&D support also positively impacts performance. We find significant complementarity between R&D support from city governments and local supporters. In contrast, national/prefectural R&D support shows no significant effects, and we observe no significant complementarity regarding multilevel or policy instrument mixes. We confirm that the qualitative findings from our interviews with local government officials and firms are consistent with our quantitative findings. |
| Keywords: | R&D support, place-based policy, policy mix, multilevel governance, innovation ecosystem, city |
| Date: | 2026–03–24 |
| URL: | https://d.repec.org/n?u=RePEc:hit:hiasdp:hias-e-159 |
| By: | OKAMURO, Hiroyuki; NISHIMURA, Junichi |
| Abstract: | Place-based economic policies have attracted research attention. Previous studies have discussed the advantages of local governments due to the heterogeneity of local conditions and environment. In recent years, most Japanese cities have provided various types of startup support for various types of potential founders and startups for regional revitalization. However, no empirical studies have addressed local startup support by considering and comparing different types of startup support. Based on our original survey data of Japanese cities, we fill these gaps by estimating the effects of city-level startup support on local startup activities by comparing different support measures. Using a city-level panel dataset with seven periods over 20 years and panel fixed effect models, we find that both hard support (subsidies) and soft support (seminars) have positive and significant effects on the number of new establishments, whereas subsidies reduce the average size of new firms, suggesting a trade-off between policy goals. |
| Keywords: | startup, entrepreneurship, place-based policy, policy mix, city |
| JEL: | H71 L26 M13 R58 |
| Date: | 2026–03–24 |
| URL: | https://d.repec.org/n?u=RePEc:hit:hiasdp:hias-e-157 |
| By: | Elvis Korku Avenyo (South African Research Chair in Industrial Development, University of Johannesburg); Danilo Spinola (College of Accounting, Finance and Economics, Researcher at UNU-Merit.); Fiona Tregenna (South African Research Chair in Industrial Development, University of Johannesburg) |
| Abstract: | This paper examines the firm-level effects of Chinese manufacturing import penetration on the performance of manufacturing firms in Belt and Road Initiative (BRI) countries. We construct a dataset of 59 BRI member countries by combining firm-level data from the World Bank's Enterprise Survey with industry-level data from the United Nations Commodity Trade (Comtrade) database from 2011 to 2020. Employing a multi-level modelling approach, our findings reveal that Chinese manufacturing imports exert a considerable adverse effect on productivity growth and employment, and a robust and significant positive effect on the export capabilities of manufacturing firms. The adverse effects on performance are significantly moderated by firms that pursue innovation and engage in foreign licensing. These findings are significant in middle-income countries and small and medium-sized enterprises (SMEs) within BRI countries. Based on these findings, we argue that the importation of manufactured goods from China results in a crowding-out effect on the productive capacities of firms within the Belt and Road Initiative (BRI) countries on the one hand and a catalytic effect on the internationalisation of firms on the other hand. These dual outcomes may underscore China's global value chains (GVCs) position-seeking strategy. |
| Keywords: | Chinese manufacturing import penetration; Multi-level modelling; Firm-level effects; Belt and Road Initiative. |
| JEL: | F14 F15 F61 O14 P33 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:adz:wpaper:2024-06 |
| By: | Ron Boschma; Simona Iammarino; Agnieszka Olechnicka |
| Abstract: | Despite recognition that interregional and international linkages promote the innovative capacity of regions, their role in regional innovation policy has received limited academic attention, resulting in challenges on how to incorporate them effectively into policy. We argue that interregional linkages are not generic in nature but shaped by capabilities that are place- and activity-specific. This is clearly shown in the strengths and weaknesses in three types of regional collaborations – foreign direct investment, co-invention, and co-publication – that we identified across five EU regions that prioritized automotives in their regional smart specialisation strategies. Using mixed-methods, we show that regions differ in the intensity and nature of interregional linkages, depending on their capabilities. Regions with a strong knowledge base in automotives manage to build effectively a range of strong connections that allow them to tap into complementary capabilities in other regions that support innovation and upgrading, in contrast to regions with a weak absorptive capacity. Consequently, interregional linkages can only be effectively integrated into innovation policies when they are place-based and activity-specific. We argue that, in the absence of targeted incentives to foster interregional connectivity, a substantial share of its potential for local innovation and regional upgrading remains untapped. |
| Keywords: | Regional strategy, International and interregional linkages, Foreign direct investment, Global value chains, Smart Specialisation Strategy, Place-based policy |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2603 |
| By: | OKAMURO, Hiroyuki; NISHIMURA, Junichi |
| Abstract: | Public R&D support attracts both academic and practical attention. Recent studies investigate the combination of different R&D policy instruments (policy mix), focusing on R&D subsidies and tax credits (“hard support”), despite the variety of actual instruments covering “soft support, ” such as matching, mediation, and consultation services. Moreover, despite the decentralization of R&D policies in several countries, few studies have addressed place-based (city-level) R&D support with a variety of policy instruments. This study fills these gaps by estimating the effects of the local R&D policy mix, covering both hard and soft instruments, based on unique panel data of 146 Japanese cities for 18 years. Using panel fixed-effects estimations, we find that hard support has positive and significant effects on patent applications per person, while soft support significantly increases productivity. Finally, the coefficient of the interaction term of hard and soft support, estimated by the system GMM, suggests their complementarity |
| Keywords: | R&D, policy mix, place-based policy, municipality, innovation |
| Date: | 2026–03–24 |
| URL: | https://d.repec.org/n?u=RePEc:hit:hiasdp:hias-e-158 |
| By: | Kishimoto, Chikashi |
| Abstract: | 本研究は，台湾の代表的ベンチャーキャピタル（VC）投資会社の1つである「中華開發資本（CDIB Capital Group）」の事例分析を行い，それ を通して近年の台湾VC業の転換に向けた取り組みを具体的に描き出すことを目的としている。中華開發資本は，その前身企業も含めると，1959年以降，60年 余りにおよんで，台湾のその時々の主要産業に投資してきた実績がある。2017年以降，ウェブやソフトウェア等のニューエコノミー分野のスタートアップへの投 資が本格化した。投資戦略もかつて半導体産業のような従来型ハイテク産業では「産業チェーン投資」が行われてきたが，ニューエコノミー分野の投資では「エコシ ステム投資」へと変化した。それに合わせ，新たなファンドが設立され，またスタートアップ支援のための「中華開發創新アクセラレーター（CCIA）」が開設さ れた（2017 年）。これにより，スタートアップ・コミュニティ，および大企業やメンター等のパートナーを巻き込んだ創業エコシステムを構築しようとしてい るのである。さらに近年，日本との連携を積極的に推進している。そのために，東京拠点（CDIB Tokyo Innovation Hub）を開設し（2023年），また台日連携推進のためのファンド（CDIB Cross Border Innovation Fund）を設立した（2024 年）。これにより，台湾スタートアップの日本市場開拓を助け，さらに，台日スタートアップ間およびスタートアップと大企業と の連携を促進しようとしている。目標は，国境を越えた台日スタートアップ・コミュニテ ィの形成，さらに将来的にはこれを東南アジアまで拡大することである。 |
| Keywords: | Taiwan, Venture Capital, CDIB Capital Group, Ecosystem Investment, CDIB Capital Innovation Accelerator (CCIA), CDIB Tokyo Innovation Hub, CDIB Cross Border Innovation Fund (CCBI), TaiwanJapan Startup Community |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:agi:wpaper:02000269 |
| By: | Nuriye Melisa Bilgin; Gianmarco Ottaviano |
| Abstract: | We study how digital infrastructure relaxes constraints on the diffusion and economic impact of artificial intelligence (AI). Using administrative data and a nationally representative enterprise survey from Turkey (2021-2024), we document significant disparities in AI adoption. Adoption is concentrated among large firms and in regions with high-speed broadband and proximity to data centers, particularly for software-intensive and cloud-based applications. To identify causal effects, we exploit the staggered expansion of Turkey's national natural gas pipeline network, which serves as a conduit for fiber-optic deployment. Because pipeline routing is determined by energy distribution priorities rather than digital demand, it provides plausibly exogenous variation in connectivity. Difference-in-differences estimates show that improved connectivity significantly increases AI adoption, particularly for software-intensive technologies and among small and medium-sized enterprises. Instrumental-variable estimates indicate that infrastructure-driven AI adoption raises labor productivity and export intensity while shifting labor composition toward ICT-related roles. These findings highlight digital infrastructure as a primary determinant of both the pace of AI diffusion and its resulting economic returns. |
| Keywords: | artificial intelligence, digital infrastructure, broadband, technology diffusion, firm productivity, cloud computing |
| Date: | 2026–04–15 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2172 |
| By: | Wurster, Stefan; Hottenrott, Hanna; Bartscherer, Falk; Kurz, Felix |
| Abstract: | The "Mission Orientation and Innovation Clusters" project investigates how mission-oriented innovation policies (MOIPs) influence technological specialization, innovation clusters, and national innovation performance. While MOIPs are designed to address grand societal challenges, their impact on the formation and persistence of technological leadership remains unclear. This project sought to systematically analyze the conditions under which mission orientation supports the emergence of innovation clusters and how institutional and political factors shape the effectiveness of these policies. |
| Keywords: | mission-oriented innovation policies, innovation clusters, national innovation performance |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esrepo:339769 |
| By: | Fei, Yue; Hege, Ulrich; Jia, Xiao |
| Abstract: | We study how IPO reforms transmit to venture capital (VC) markets using the introduction of China’s entrepreneurial boards, ChiNext and the registration-based STAR. We document that both boards attract younger, higher-growth firms with weaker fundamentals in levels, but postIPO growth persists for ChiNext firms while decelerating sharply for STAR firms. VC backing plays different roles across regimes: on ChiNext it aligns with valuation premia and long-run outperformance, whereas on STAR it mainly predicts higher first-day returns. To identify causal effects on VC allocation, we construct novel text-based regulatory exposure measures from listing documents using keyword matching and Sentence-BERT semantic similarity, and show that VC financing reallocates toward firms more aligned with "supported" activities. |
| Keywords: | IPO Reforms; IPO Listing Requirements; Venture Capital; Business Description; BERT; China |
| JEL: | G24 G28 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:131666 |
| By: | Hanming Fang; Xian Gu; Hanyin Yan; Wu Zhu |
| Abstract: | We develop a high-precision classifier to measure artificial intelligence (AI) patents by fine-tuning PatentSBERTa on manually labeled data from the USPTO's AI Patent Dataset. Our classifier substantially improves the existing USPTO approach, achieving 97.0% precision, 91.3% recall, and a 94.0% F1 score, and it generalizes well to Chinese patents based on citation and lexical validation. Applying it to granted U.S. patents (1976-2023) and Chinese patents (2010-2023), we document rapid growth in AI patenting in both countries and broad convergence in AI patenting intensity and subfield composition, even as China surpasses the United States in recent annual patent counts. The organization of AI innovation nevertheless differs sharply: U.S. AI patenting is concentrated among large private incumbents and established hubs, whereas Chinese AI patenting is more geographically diffuse and institutionally diverse, with larger roles for universities and state-owned enterprises. For listed firms, AI patents command a robust market-value premium in both countries. Cross-border citations show continued technological interdependence rather than decoupling, with Chinese AI inventors relying more heavily on U.S. frontier knowledge than vice versa. |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2604.10529 |
| By: | Sumaya Islam (Paderborn University) |
| Abstract: | .Green start-ups are frequently portrayed as major drivers of the sustainable revolution, yet little is known about their true risk of insolvency. Using a population-wide register dataset of 30, 523 German startups, the failure rates of green and non-green startups are compared. While there is a theoretical argument that a commitment to sustainability provides legitimacy and access to patient capital, the empirical evidence is still scarce and dependent on the context and ecosystem. The results are striking. Using survival analysis, it is shown that green startups are significantly more likely to fail than non-green startups both in the short and long term. These time patterns are consistent: green startups are more likely to go into insolvency than non-green startups not only during the first years of life but also at later stages of firm development. This evidence challenges the existence of a green survival premium and suggests a liability of newness and greenness; that is, engaging in sustainability makes startups more unstable throughout their life cycle. Overall, these findings provide a more refined comprehension of sustainable entrepreneurship by highlighting the structural and persistent nature of the risks of failure of green startups. They also invite governments and investors to reconsider their policies of support and to develop long-term instruments that better match the specific risk profiles and capital needs of sustainability-oriented startups. |
| Keywords: | ... (keywords) |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:pdn:dispap:167 |
| By: | Vladislav Morozov; Andrea Sy |
| Abstract: | Firms in denser areas are more productive, a pattern attributed to agglomeration economies and firm selection. To disentangle these two channels, the popular approach of Combes et al. (2012, ECTA) critically assumes that total factor productivity (TFP) distributions between denser and less dense areas are the same up to mean, variance, and left-tail truncation. We empirically validate this assumption using Spanish administrative firm-level data and recent econometric methods adapted to noisy TFP estimates. Our results find that TFP distributions are indeed statistically identical up to these parameters, validating the use of such productivity decompositions. Furthermore, using only the mean and variance is sufficient to capture differences for all sectors. Accordingly, the productivity advantage of cities may be entirely due to agglomeration rather than stronger selection, suggesting that policymakers should focus on policies targeting agglomeration. Finally, our approach extends to related contexts like differences in worker skill distributions. |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2604.13188 |
| By: | Pollitt, M. G.; Duma, A.; Covatariu, A.; Nillesen, P. |
| Abstract: | Electricity and gas distribution system operators (DSOs) are expected to play a crucial role in the energy transition. Hence, incentivizing innovation in this sector, which displays natural monopoly features, is becoming increasingly relevant. Measuring in novation is notoriously difficult, as both the inputs (funding innovative activities) and outputs (patents, publications or new adopted technologies and processes) are imprecisely measured and challenging to compare across countries. To address this, we take a text analysis approach to measuring innovation in DSOs, based on occurrences of innovation signaling words. Starting from a sample of 194 electricity DSOs and 73 gas DSOs, this paper measures innovation intensity based on DSO corporate reporting. The results are compared across different DSO characteristics like size, performance, structure, ownership and geographic location. |
| Keywords: | Distribution System Operators, Energy Transition, Innovation |
| JEL: | L94 |
| Date: | 2026–03–11 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2616 |
| By: | Noriyuki Yanagawa (The University of Tokyo) |
| Abstract: | This paper examines the framework of corporate governance in family businesses by analyzing its relationship with general governance theories, the unique characteristics of family firms, and succession planning. The study highlights the necessity of distinguishing the "family" system from the "business" system when addressing governance issues. It further argues that clarifying decision-making processes and articulating tacit knowledge are essential. Finally, regarding succession planning, the paper posits that ensuring a smooth transition between principals and fostering consensus among stakeholders, including employees and financial providers, are critical factors. |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:cfi:jseres:cj125 |
| By: | Giendl, Clara; Schwarzbauer, Wolfgang |
| Abstract: | This paper examines how regional economic diversity shapes economic resilience across European regions during major crises. Using sectoral diversity indicators at the NUTS-2 level, we analyze the impact of diversity on three dimensions of resilience: the depth of economic downturns, the strength of the initial recovery, and the duration of recovery, focusing on the 2008 financial crisis and the COVID-19 pandemic. Our results show that higher economic diversity consistently mitigates the severity of economic shocks, reducing the immediate decline in regional economic activity in both crises. However, this stabilizing effect comes with a trade-off: More diversified regions tend to exhibit weaker short-term recovery dynamics and longer recovery periods. In contrast, regions characterized by higher innovation intensity and productivity-driven specialization recover more quickly. These findings highlight the importance of balancing structural diversity and innovation. While diversity enhances shock absorption, innovation and specialization appear crucial for accelerating recovery. The paper contributes to the literature on regional resilience by providing EU-wide evidence across multiple crises and offers policy-relevant insights on how structural economic characteristics shape regional responses to shocks. |
| Abstract: | Wirtschaftskrisen treffen Regionen unterschiedlich stark. Warum kommen manche Regionen besser durch Krisen als andere? Das EcoAustria Research Paper untersucht, welche Rolle die wirtschaftliche Struktur - insbesondere die sektorale Diversität - für die Krisenresilienz von Regionen spielt. Auf Basis von Daten für europäische Regionen analysieren wir die Auswirkungen zweier großer Krisen: der Finanzkrise 2008 und der COVID-19-Pandemie. Dabei betrachten wir drei zentrale Dimensionen der Resilienz: die Tiefe des Einbruchs, der Beginn der ersten Erholung sowie die Dauer bis zur vollständigen Erholung. Die Ergebnisse zeigen ein klares Muster: Regionen mit einer stärker diversifizierten Wirtschaftsstruktur sind besser in der Lage, wirtschaftliche Schocks abzufedern. Da ihre Wertschöpfung auf mehrere Sektoren verteilt ist, sind sie weniger anfällig für Einbrüche in einzelnen Branchen. Allerdings geht diese Stabilität mit einem Zielkonflikt einher: Diversifizierte Regionen erholen sich tendenziell langsamer, während stärker spezialisierte Regionen häufig schneller und dynamischer aus der Krise herauswachsen. Eine wichtige Rolle spielt zudem Innovation. Regionen mit höherer Innovationskraft und Produktivität weisen schnellere Erholungsprozesse auf Insgesamt zeigen die Ergebnisse: Diversität und Innovation sind beide entscheidend für Resilienz, wirken jedoch unterschiedlich. Eine ausgewogene Kombination aus wirtschaftlicher Vielfalt und Innovationsstärke kann daher einen guten Schutz vor zukünftigen Krisen bieten. |
| Keywords: | regional economics, resilience, COVID-19, Economic and financial crisis 2008 |
| JEL: | R11 R15 N41 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ecoarp:340006 |
| By: | Youn Baek; Deepak Hegde |
| Abstract: | We study who joins startup accelerators, how founders sort across programs, and which accelerators improve startup outcomes. Using a comprehensive sample of about 750, 000 U.S. startups linked to 329 accelerators, we adapt the teacher value-added framework from education economics to estimate accelerator value added (AVA) while accounting for sorting. Selection is systematic: observably better ventures are more likely to enter accelerators and to sort into higher-AVA programs. Yet accelerator performance is highly dispersed. Most accelerators have negative value added relative to a no-accelerator benchmark, while a small right tail generates large gains. High-AVA accelerators predict better long-term outcomes, including acquisition, employment, revenue, and valuation, and are also more likely to accelerate the shutdown of weaker ventures. We validate AVA using internal applicant data from a large U.S. non-equity accelerator. |
| JEL: | D8 G2 G3 O3 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35063 |