Incubating an Illusion? Long-term Incubator Firm Performance after Graduation
Michael Schwartz
Growth and Change,
Nr. 4,
2011
Abstract
Local economic development policies worldwide perceive business incubation as an effective measure to promote regional growth through the support of young and innovative ventures. The common assumption is that incubation promotes firm growth, in particular after these firms graduated from their incubator organizations. This article investigates the long-term performance of 324 graduate firms from five German business incubators (incubated between 1990 and 2006) after they have (successfully) completed their incubation. The present study does not suffer from a survivor bias, meaning that performance data of non-surviving firms is also included. Using employment and sales measures as performance indicators, this study contributes to our knowledge with regard to long-term incubator firm performance after graduation. While in the first years after graduation there is significant growth of formerly incubated firms, further results do not support the presumption of continuous firm growth beyond incubation. A minority of graduate firms exhibits a strong increase in performance, but the majority of firms do not experience considerable growth.
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Identifying Industrial Clusters from a Multidimensional Perspective: Methodical Aspects with an Application to Germany
Matthias Brachert, Mirko Titze, Alexander Kubis
Papers in Regional Science,
Nr. 2,
2011
Abstract
If regional development agencies assume the cluster concept to be an adequate framework to promote regional growth and competitiveness, it is necessary to identify industrial clusters in a comprehensive manner. Previous studies used a diversity of methods to identify the predominant concentrations of economic activity in one industrial sector in a region. This paper is based on a multidimensional approach developed by Titze et al. With the help of the combination of concentration measures and input–output methods they were able to identify horizontal and vertical dimensions of industrial clusters. This paper aims to refine this approach by using a superior measure of spatial concentration and by integrating information about spatial interdependence of industrial cluster structures to contribute to a more adequate framework for industrial cluster identification.
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Die Entwicklung der Corporate Governance deutscher Banken seit 1950
R. H. Schmidt, Felix Noth
Bankhistorisches Archiv,
Nr. 2,
2011
Abstract
The present paper gives an overview of the development of Corporate Governance of German banks since the 1950s. The focus will be on economic analysis. The most striking changes in Corporate Governance occurred with the ownership structure of commercial banks, in particular with the major joint-stock banks. In addition to that, the capital market has become a core element of Corporate Governance in all major German banks, which have replaced their prior concentration on the interests of a broadly defined circle of stakeholders by a one-sided concentration on shareholders’ interests. In contrast, with savings banks and cooperative cooperative banks, Corporate Governance has remained unchanged for the most part. Exceptions to this are the regional state banks: in their case, after they had turned away from traditional business models and in particular following the discontinuation of the guarantee obligation, the problems of their Corporate Governance, which were already discernible beforehand, became quite obvious. If you include the financial crisis, beginning in 2007, in the analysis, it becomes evident that it was precisely a Corporate Governance unilaterally geared to shareholders’ interest and the efficiency of the capital market that materially contributed to the evolution and widening of the crisis.
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State Aid in the Enlarged European Union. An Overview
Jens Hölscher, Nicole Nulsch, Johannes Stephan
Abstract
In the early phase of transition that started with the 1990s, Central and Eastern European Countries pursued economic restructuring of the enterprise sector that involved massive injections of state support. Also foreign investment from the West and facilitation of the development of a market economy involved massive injections of state support. With their accession to the European Union (EU), levels and forms of state aid came under critical review by the European Commission. This inquiry investigates whether the integration of the new member states operates on a level playing field with respect to state aid. Quantitative and qualitative analysis is relied upon to answer this key, as well as other, related questions. Findings suggest that in recent years a level playing field across the EU has indeed emerged. State aid in the new EU member countries is rather handled more strictly than laxer compared to the ‘old’ EU countries.
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Governmental Learning as a Determinant of Economic Growth
Marina Grusevaja
IWH Discussion Papers,
Nr. 23,
2010
Abstract
Systemic economic transition is a process of determined radical institutional change, a process of building new institutions required by a market economy. Nowadays, the experience of transition countries with the implementation of new institutions could be reviewed as a method of economic development that despite similar singular steps has different effects on the domestic economic performance. The process of institutional change towards a market economy is determined by political will, thus the government plays an important role in carrying out the economic reforms. Among the variety of outcomes and effects the attention is drawn especially to economic growth that diverges significantly in different post-transition countries. The paper attempts to shed light upon the problem on the basis of institutional economics, of economics of innovation and partially of political economy of growth using an evolutionary, process-oriented perspective. In this context the issue central to the promotion of economic growth is the successful implementation of new institutions through governmental activities. The paper shows that under the conditions of bounded rationality and radical uncertainty economic growth is determined, inter alia, by the capacity for governmental learning.
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The Impact of Bank and Non-bank Financial Institutions on Local Economic Growth in China
Xiaoqiang Cheng, Hans Degryse
Journal of Financial Services Research,
Nr. 2,
2010
Abstract
This paper provides evidence on the relationship between finance and growth in a fast growing country, such as China. Employing data of 27 Chinese provinces over the period 1995–2003, we study whether the financial development of two different types of financial institutions — banks and non-banks — have a (significantly different) impact on local economic growth. Our findings indicate that banking development shows a statistically significant and economically more pronounced impact on local economic growth.
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The Emergence of Wage Coordination in the Central Western European Metal Sector and its Relationship to European Economic Policy
Vera Glassner, Toralf Pusch
Abstract
In the European Monetary Union the transnational coordination of collective wage bargaining has acquired increased importance on the trade union agenda. The metal sector has been at the forefront of these developments. This paper addresses the issue of crossborder coordination of wage setting in the metal sector in the central western European region, that is, in Germany, the Netherlands and Belgium, where coordination practices have become firmly established in comparison to other sectors. When testing the interaction of wage developments in the metal sector of these three countries, relevant macroeconomic (inflation and labour productivity) and sector-related variables (employment, export-dependence) are considered with reference to the wage policy guidelines of the European Commission and the European Metalworkers’ Federation. Empirical evidence can be found for a wage coordination effect in the form of increasing compliance with the wage policy guidelines of the European Metalworkers’ Federation. The evidence for compliance with the stability-oriented wage guideline of the European Commission is weaker.
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Knowledge Spill-overs for Knowledge-based Development: Progression in Theory and Obstacles for Empirical Research
Peter Franz
International Journal of Knowledge-Based Development,
2010
Abstract
As scientists and policymakers tend to interpret changes in the economy as a trend towards an increasingly knowledge-based economy, their recommendations and strategies for regional economic development frequently contain elements how to intensify the knowledge flows in the region concerned. Knowledge flows come into existence from intentional action, but also in an unintended way as externalities or knowledge spillovers. This paper reviews the ways regional and urban economics has dealt with the concept of knowledge spillovers. Knowledge spillovers are defined within a conceptual framework that points out different uses of knowledge in economics. The concept’s operationalisations in diverse empirical studies are systematised and discussed. After a critical review of the current state of research, policy strategies aiming to intensify knowledge spillovers are classified. The paper concludes with an outlook on promising new approaches to research knowledge spillovers and on the elaboration of more efficient policy strategies.
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