Showing papers by "Zoltan J. Acs published in 1996"
Journal Article•
TL;DR: This article found that small and medium-sized firms and entrepreneurship have become increasingly more important to the economies of both developed and developing countries than previously acknowledged, and the role of small firms in economic growth has been investigated.
Abstract: For years the small-firm sector of the economy remained an enigma. However, recently researchers have assembled a far better understanding of the economic role of small firms. One of the surprising findings is that small and medium-sized firms and entrepreneurship have become increasingly more important to the economies of both developed and developing countries than previously acknowledged. These volumes bring together a wide range of literature on the whole subject of small firms and economic growth.
132 citations
Book•
30 Jan 1996
TL;DR: The share of small firms four effects stimulating largeness six effects stimulating smallness trade-offs in economic modelling smallness in economic growth was studied in this article, showing that small firms are more likely to experience largeness than smallness.
Abstract: The share of small firms four effects stimulating largeness six effects stimulating smallness trade-offs in economic modelling smallness in economic growth.
67 citations
TL;DR: In this article, an empirical test is provided of the effect of the degree of obsolescence on the impact of firm size and monopoly profits on a firm's ability to innovate.
Abstract: An empirical test is provided of the effect of the degree of obsolescence on the effect of firm size and monopoly profits on a firm's ability to innovate. Recent theory suggests that innovation depends on firm size and monopoly profits only if the firm conducts product improvement as well as new product innovation. This is due to the allocation of limited entrepreneurial attention between improving current products and innovating new products. Current products are subject to obsolescence and innovation requires technological opportunities. The firm conducts product improvement as well as new product innovation only if the degree of obsolescence is sufficiently low relative to the level of technological opportunity. This theory provides an explanation for previously unexplained empirical observations. We find preliminary support for the hypothesis that product improvement reduces the positive effect of firm size on new product innovation and sufficient product improvement may reverse the negative effect of monopoly profits on new product innovations. In addition, product improvement reduces the positive effect of technological opportunity on new product innovation.
30 citations
Posted Content•
TL;DR: In this paper, the authors suggest that these barriers can frequently be circumvented by using existing multinationals as international conduits for small and medium-size firms' innovations and raise two categories of questions: (i) is the private sector systematically making the wrong choice between the direct and intermediated mode of international expansion? and (ii) what should be the policy guidelines to improve the overall rate of international diffusion of innovation by small-and medium-sized enterprises.
Abstract: Small and medium sized firms play an important role in the process of creative destruction. The focus of the paper is on the international diffusion of small and medium sized firms innovations. Small and medium sized firms face two challenges in globalization: property rights protection and barriers to entry. We suggest that these barriers can frequently be circumvented by using existing multinationals as international conduits for small and medium size firms' innovations. However, such intermediated modes of expansion is adversely affected by transaction difficulties and intermediator's rent extraction. We raise two categories of questions: (i) is the private sector systematically making the wrong choice between the direct and intermediated mode of international expansion? and (ii) What should be the policy guidelines to improve the overall rate of international diffusion of innovation by small and medium sized enterprises.
6 citations