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on Technology and Industrial Dynamics |
| By: | Erik Stam; Veronique Schutjens |
| 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:egu:wpaper:0605&r=tid |
| By: | Erik Stam |
| Abstract: | How do changes in the spatial organization of entrepreneurial firms come about? This paper provides a conceptualisation of the process of locational change. A process model of locational change is constructed on the basis of an empirical study of 109 locational events during the life course of 25 young firms in knowledge intensive sectors (knowledge services and biomedicals). This process model of locational change maps both internal and external variation and selection processes. This model contributes to the development of a causal process theory of the spatial development of (new) firms. |
| Keywords: | location, entrepreneurial firms, evolutionary theory, decision-making, process models |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:0604&r=tid |
| By: | Lederman, Daniel; Klinger, Bailey |
| Abstract: | Recent research highlights the relationship between economic development and productive diversification, which may be hindered by market failures. After identifying stages of diversification in disaggregated export data, the authors develop a metric for the flows of export " discoveries, " or inside-the-frontier innovations in developing countries. They then explore the empirical relationship between economic development and (1) inside-the-frontier-innovation as reflected by the introduction of new export products, (2) export diversification measured by an index of export-revenue concentration, and (3) on-the-frontier innovation as reflected in patents. The data suggest , unsurprisingly, that inside-the-frontier innovation is more common among poor countries than among industrial economies. Overall export diversification increases at low levels of development but declines with development after a high-income point, whereas patenting activity rises exponentially with development. The data also suggest that the relationship between the frequency of export discoveries and economic development is not due to changes in the industrial composition of exports. The authors use a simple model of innovation and imitation to test the hypothesis that the threat of imitation inhibits the discovery of new exports. Econometric evidence suggests that the frequency of export discoveries across countries rises with the returns of export activities (proxied by exogenous export growth during the sample period), but the magnitude of this effect increases with barriers to entry. The count-data estimations deal with unobserved international heterogeneity, and the results are robust to various changes in the specification of the empirical model. This finding supports the hypothesis that market failures inhibit inside-the-frontier innovation. |
| Keywords: | Economic Theory & Research,Markets and Market Access,Water Resources Assessment,Pro-Poor Growth and Inequality,Airports and Air Services |
| Date: | 2006–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:3872&r=tid |
| By: | Sörlin, Sverker (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | More explicitly than before, universities have become instruments of industrial and economic growth policies. This has led to an increase in accountability regimes and in the application of the so called New Public Management on universities hitherto governed by a Humboldtian, Weberian, or Mertonian norms and a high degree of internal freedom and autonomy. This paper reviews some of the literature on these phenomena and analyzes critically some of the positions taken. It is concluded that while there is arguably a considerable change in governance going on in Western university systems, the change is far from altering the academic ethos. Still, it is argued, institutional norms should also be defended, which could be achieved through differentiation of higher education and among research performing institutions and organizations. An important virtue of the university remains to deliver social value precisely because it is an institution of credibility, criticism, and trust. |
| Keywords: | University Governance; University Management; Higher Education Policy; Higher Education; Research Policy; University Licensing. |
| JEL: | I21 |
| Date: | 2006–03–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0053&r=tid |
| By: | Ignazio Musu (Department of Economics, University of Venice "Ca' Foscari") |
| Abstract: | The paper discusses two types of problems related to assigning or denying intellectual property rights to agro-biotechnological innovations in the relation between developed and developing countries. First, protecting property rights on innovations creates incentives towards further research and innovation, which in some cases may be beneficial to society, in others not so. If the assigning of the right does not guarantee the potential beneficial use of the innovation, not assigning rights would not prevent its potentially dangerous utilization. Secondly, the power of exclusion of the holder of an intellectual property right limits access to the newly produced knowledge: this may discourage the process of producing new knowledge, harming developing countries. Moreover the property right holder may end up with excessive market power when commercializing the innovation, which is also harmful to developing countries. It is shown that these problems cannot be solved by denying protection to property rights on innovations, but by improving procedures for awarding these rights and accompanying them with appropriate liability rules and antitrust measures. |
| Keywords: | Intellectual property rights, Biotechnology, Patent system |
| JEL: | O30 O33 O34 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:0106&r=tid |
| By: | Martynova,Marina; Renneboog,Luc (TILEC (Tilburg Law and Economics Center)) |
| Abstract: | This paper provides a comprehensive overview of the European takeover market. We characterize the main features of the domestic and cross-border corporate takeovers involving European companies in the period 1993-2001. We provide detailed and comparable information on the size and dynamics of takeover activity in 28 Continental European countries, the UK and Ireland. The data is supplemented with the characteristics of takeover transactions, including the type of takeovers (negotiated acquisition or tender offer), bid attitude (friendly or hostile), payment method (all-cash, all-equity, or mixed deals), legal status of the target firm (public or private), takeover strategy (focus or diversification), amongst other factors. In addition, we investigate the shortterm wealth effects of 2,419 European mergers and acquisitions. We find announcement effects of 9% for target firms compared to a statistically significant announcement effect of only 0.5% for the bidders. Including the price run-up, the share price reaction amounts to 21% for the targets and 0.9% for the bidders. We show that the estimated shareholder wealth effect strongly depends on the different attributes of the takeovers. The type of takeover bid has a large impact on the short-term wealth effects for the target firm shareholders with hostile takeovers triggering substantially larger price reactions than friendly transactions. When a UK target is involved, the abnormal returns are higher than those of bids involving a Continental European target. There is strong evidence that the means of payment has a large impact on the share prices of both bidder and target |
| Keywords: | takeovers;mergers and acquisitions;diversification;takeover waves;means of payment |
| JEL: | G34 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubtil:20063&r=tid |