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on Technology and Industrial Dynamics |
| By: | Veronique Schutjens; Erik Stam |
| Abstract: | We know that most businesses fail. But what is not known is to what extent failed ex-entrepreneurs set up in business again. The objective of this article is to explore potential and realized serial entrepreneurship. Based on three disciplines - psychology, labour economics, and the sociology of careers - we formulated propositions to explain (potential) serial entrepreneurship. We tested these propositions empirically with a longitudinal database of 79 businesses that had closed within 5 years after start-up. A large majority of the ex-entrepreneurs maintained entrepreneurial intentions subsequent to business closure, while almost one in four business closures were followed by a new business (serial entrepreneurship). Our results show that the determinants of restart intention (potential serial entrepreneurship) and actual restart realization (realized serial entrepreneurship) are different. Ex-entrepreneurs who are young, who worked full-time in their prior business, and who recall their business management experience positively are likely to harbour restart intentions. Only 'being located in an urban region' transpired to have a significant effect on the start of a new business. Although entrepreneurial intentions are a necessary condition for the start of a new business, this study shows that the explanation of entrepreneurial intentions is distinct from the explanation of new business formation subsequent to business closure. |
| Keywords: | serial entrepreneurship; business closure; entrepreneurial intentions; new business formation, The Netherlands |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:esi:egpdis:2006-10&r=tid |
| By: | Luigi Benfratello (University of Turin); Fabio Schiantarelli (Boston College and IZA Bonn); Alessandro Sembenelli (University of Turin) |
| Abstract: | In this paper we investigate the effect of local banking development on firms’ innovative activities, using a rich data set on innovation for a large number of Italian firms over the 1990’s. There is evidence that banking development affects the probability of process innovation, particularly for small firms and for firms in high(er) tech sectors and in sectors more dependent upon external finance. The evidence for product innovation is weaker. There is also some evidence that banking development reduces the cash flow sensitivity of fixed investment spending, particularly for small firms, and that it increases the probability they will engage in R&D. |
| Keywords: | banks, financial development, innovation, R&D, investment |
| JEL: | D24 G21 G38 O31 O33 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2032&r=tid |
| By: | Tõnis Mets (Faculty of Economics and Business Administration, Centre for Entrepreneurship, University of Tartu) |
| Abstract: | The aim of this article is to evaluate the ratio of expenditures between fundamental research, applied research and technological development, to analyse this proportion in the innovation processes of Estonian biotech public sector and private SMEs, and to shape supportive measures to knowledge transfer and entrepreneurship in the biotechnology sector. The empirical study explores Estonian biotechnology by mapping the strategy, innovation processes and related expenditures of the public sector and private businesses. Findings from the annual reports of biotech SMEs and interviews with managers demonstrate the following: companies are mostly profitable, but their own capability to invest into development is quite limited; only a third of the biotech companies have adopted a growth-oriented strategy; entrepreneurship and marketing experience in the companies was nearly three times lower than in research; international knowledge transfer and networking are mostly related to research and practically never to commercialisation of the research results. The author deduced the gross funding structure proportion of basic and applied research, and product/service development in Estonian biotechnology sector according to the formula: 11:5:1. In the business sector the ratio is approximately 1:3:5 and together with public support: 1:6:5. The structure of research expenditures in the public sector mostly reflects the success of Estonian biosciences rather than the success of the biotech as an economy sector. Some options for improvement of sectoral system of innovation are given. |
| Keywords: | knowledge transfer, innovation models, biotechnology, R&D expenditures, sectoral system of innovation |
| JEL: | L65 O31 O32 O38 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ttu:wpaper:131&r=tid |
| By: | Tsuyoshi Nakamura (Faculty of Economics, Tokyo Keizai University); Kazuo Ueda (Faculty of Economics, University of Tokyo) |
| Abstract: | Using a panel of 30 Japanese chemical and pharmaceutical companies for the period of 1985 to 1998, we estimate the effects of university-industry research collaboration (UIC) on participating firms' research output. We find, as in other studies in the field, that UIC leads to more research output, in terms of the number of patents obtained. In contrast to the results for the U.S., however, we find no evidence that UIC significantly affects quality adjusted patents, that is, citation weighted patent counts. By looking finely at what part of the quality ladder of patents UIC stimulates, we find that UIC increases only those patents with a small number of citations, thus failing to affect the "average" quality of patents. Discussions of possible reasons for this finding are also offered. |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2006cf404&r=tid |
| By: | Deniz Ucbasaran; Mike Wright; Paul Westhead |
| Abstract: | This study utilizes a human capital framework to explore whether business ownership experience is associated with the number of business opportunities identified, the number of identified opportunities that are pursued, and the nature of those opportunities. Information from a large representative sample of owners of 631 private independent firms is utilized. Controlling for various dimensions of entrepreneurs' general and specific human capital, we find that experienced (habitual) entrepreneurs identify more business opportunities, pursue more of these opportunities and are associated with more innovative opportunities. We can infer that business ownership experience acts as an important guide for entrepreneurs in processing information in a manner than allows them not only identify more opportunities but potentially more innovative ones too. |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:esi:egpdis:2006-09&r=tid |
| By: | Joachim Merz (University of Lueneburg and IZA Bonn); Peter Paic (University of Lueneburg) |
| Abstract: | If certain start-up characteristics will indicate a business success, knowing such characteristics could generate more successful start-ups and more efficient start-up counseling. Our study will contribute to this by quantifying individual success determinants of freelance start-ups. The data base for the microeconometric analyses of the survival of the first three years is a revised German Socio-Economic Panel (SOEP) for 1992 until 2002, which allows to incorporate institutional, personal and family/household socio-economic variables. We describe and discuss the datawork to achieve compatible information over time within a revised GSOEP and present microeconometric rare events logit, logit and probit results. |
| Keywords: | start-up success, freelancers, liberal professions, self-employed, German Socio-Economic Panel, rare events logit, logit, probit |
| JEL: | J23 J21 D10 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2036&r=tid |
| By: | Bruno van Pottelsberghe (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and DULBEA, Université Libre de Bruxelles.); Didier François (Solvay Business School, Université Libre de Bruxelles, Brussels) |
| Abstract: | The objective of this paper is to assess whether and to what extent the cost of patenting affects the demand for patents. The empirical analysis, which focuses on the patent systems of the USA, Japan, and Europe during the year 2003, leads to the following methodological and empirical observations: i) after the grant, the translation, validation and transaction costs induced by an effective protection in several European countries witness a highly fragmented and very expensive European market for intellectual property; ii) for a proper international comparison, the size of the market and the average number of claims must be accounted for; iii) when the cost per claim per capita (the 3C-index) is considered, a negative linear relationship appears between the cost of patenting and the number of claims that are filed; iv) for a patent designating 13 European countries, the 3C-index is about six (two) times more expensive than in the US (Japanese) system; v) The European market being more than twice as large as the US market in terms of inhabitants, the 3C-index suggests that there would be a clear justification for higher nominal examination fees at the EPO, that would ensure a rigorous granting process. |
| Keywords: | patents; cost elasticity; cost per claim per capita, patent systems |
| JEL: | P14 P51 O34 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:06-002&r=tid |