Entrepreneurship, Human Capital, and Regional Development: Labor Networks, Knowledge Flows, and Industry Growth

399 Pages·2015·6.85 MB·English

by  Rui Baptista

International Studies in Entrepreneurship
Rui Baptista
João Leitão Editors
Entrepreneurship,
Human Capital,
and Regional
Development
Labor Networks, Knowledge Flows, and
Industry Growth
International Studies in Entrepreneurship
Series editors
Zoltan J. Acs, George Mason University, Fairfax, VA, USA
David B. Audretsch, Indiana University, Bloomington, IN, USA
More information about this series at h ttp://www.springer.com/series/6149

Rui Baptista (cid:129) João Leitão
Editors
Entrepreneurship,
Human Capital,
and Regional Development
Labor Networks, Knowledge Flows,
and Industry Growth
Editors
Rui Baptista João Leitão
Brunel Business School Department of Management and Economics
Brunel University London University of Beira Interior
Kingston Lane, Uxbridge, UK Covilhã, Portugal
CEG-IST CEG-IST
Universidade de Lisboa Universidade de Lisboa
Lisbon, Portugal Lisbon, Portugal
ISSN 1572-1922 ISSN 2197-5884 (electronic)
ISBN 978-3-319-12870-2 ISBN 978-3-319-12871-9 (eBook)
DOI 10.1007/978-3-319-12871-9
Springer Cham Heidelberg New York Dordrecht London
Library of Congress Control Number: 2014958452
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Contents
1 Introduction ............................................................................................. 1
Rui Baptista and João Leitão
Part I Entrepreneurship
2 Entrepreneurship Capital and Regional Development:
A Perspective Based on Intellectual Capital ......................................... 15
Maria Rosário Cabrita , Cristina Cabrita , Florinda Matos ,
and María del Pilar Muñoz Dueñas
3 Career Paths of Academic Entrepreneurs
and University Spin-Off Growth ........................................................... 29
Nora Hesse
4 The Role of Employee’s Human Capital and the Work
Environment on the Creation of Organizational Spin-Offs:
Evidence from Spain ............................................................................... 59
Eissa Alrumaithi , Maribel Guerrero , and Iñaki Peña
5 Early-Stage Businesses, Resource Inheritance,
and Coworkers Hiring: The Moderating Role
of Founder’s Human Capital ................................................................. 75
Emeran Nziali and Alain Fayolle
6 Where Do Spin-Offs Come From? Start-Up Conditions
and the Survival of Pushed and Pulled Spin-Offs ................................ 93
Vera Rocha , Anabela Carneiro , and Celeste Varum
Part II Human Capital
7 Economic Performance of Portuguese Academic Spin-Offs:
Does the Human Capital of Founders Matter? .................................... 125
Aurora A. C. Teixeira and Ricardo Castro
v
vi Contents
8 Recruitment Processes and Capability Development
in Academic Spin-Offs: An Exploratory Work .................................... 157
Ugo Rizzo
9 Coopetition and Open Innovation: An Application
to KIS vs. Less-KIS Firms ...................................................................... 169
Dina Pereira and João Leitão
10 Does Human Capital Impact Differently the Opportunity
Perception and the Business Creation? The Case of Spain ................. 187
Rocío Aliaga-Isla
11 The Influence of Creativity on Entrepreneurship:
The Portuguese Case ............................................................................... 205
André Olim , Isabel Mota , and Sandra T. Silva
Part III Regional Development
12 Cluster(ing) Policies in Turkey: The Impact
of Internationalization or the Imitation of Internationals .................. 239
Murat Ali Dulupçu , Murat Karaöz , Onur Sungur ,
and Hidayet Ünlü
13 Are Small Firms More Dependent on the Local Environment
than Larger Firms? Evidence from Portuguese
Manufacturing Firms ............................................................................. 263
Carlos Carreira and Luís Lopes
14 Organizational Heritage and Entrepreneurship: Steven Klepper’s
Theories Reflected in the Emergence and Growth
of the Plastic Molds Industry in Portugal ............................................. 281
Carla Costa and Rui Baptista
15 High-Growth Firms: What Is the Impact
of Region-Specific Characteristics? ....................................................... 295
Patrícia Bogas and Natália Barbosa
16 Regional Industrial Policy in Norway and Spain ................................. 309
Arnt Fløysand , Stig-Erik Jakobsen , and José Luis Sánchez-Hernández
17 Entrepreneurship, Job Creation, and Growth
in Fast-Growing Firms in Portugal: Is There a Role for Policy? ....... 333
Elsa de Morais Sarmento and Alcina Nunes
Index ................................................................................................................. 387
Chapter 1
Introduction
Rui Baptista and João Leitão
1.1 Preface
E ntrepreneurship is a suffi ciently eclectic and multidimensional area of research to
allow simultaneous approaches from a variety of scientifi c fi elds—from economics
to sociology—using different levels and for different units of analysis, namely
country, region, fi rm, and the individual. The relationship between entrepreneurship
and the dynamics of endogenous growth has been well established (Audretsch et al.
2006; Acs et al. 2 009) , and so has its impact on regional employment growth (Fritsch
and Mueller 2 004 ; Baptista and Preto 2 011 ).
After more than a decade of discussion reprising the Schumpeterian role of
entrepreneurship in the context of endogenous growth theories, the main point that
emerges is that not all entrepreneurship impacts growth in the same way. Impactful
entrepreneurship requires an array of competences and behaviors from the entrepre-
neur in order to recognize opportunities in new ideas and converting those into
innovations that enhance overall productivity, competitiveness, employment, and
welfare. In order to have an impact on growth, entrepreneurship needs to add value,
and not just appropriate existing value. More specifi cally, entrepreneurial change
causes growth by combining factors of production in new, innovative ways, and
using previously unused factors of production, thereby enhancing productivity.
New combinations of factors of production are brought about by entrepreneurial
action in terms of new products and services, hiring of workers, process innovation.
R. Baptista (*)
Brunel Business School , Brunel University London , Kingston Lane ,
Uxbridge , UB8 3PH , UK
CEG-IST , Universidade de Lisboa , Av. Rovisco Pais, 1 , Lisbon , 1050-001 Lisboa , Portugal
e-mail: [email protected]
J. Leitão
Department of Management and Economics , Universidade da Beira Interior ,
Estrada do Sineiro , Covilhã , 6200-209 Covilhã , Portugal
CEG-IST , Universidade de Lisboa , Av. Rovisco Pais, 1 , Lisbon , 1050-001 Lisboa , Portugal
e-mail: [email protected]
© Springer International Publishing Switzerland 2015 1
R. Baptista, J. Leitão (eds.), Entrepreneurship, Human Capital,
and Regional Development, International Studies in Entrepreneurship 31,
DOI 10.1007/978-3-319-12871-9_1
2 R. Baptista and J. Leitão
Innovation generates knowledge fl ows to other competitors and companies in
related industries, some of these fl ows occurring through the mobility of workers.
Such mobility also serves, as documented by Phillips (2 002) , for new organizations
to acquire the knowledge, competences, and routines of existing ones. Labor mobility
provides new, innovative start-ups with the abilities required to organize and sur-
vive, and infuses incumbents with new ideas to facilitate restructuring and repurpos-
ing of old lines of business.
H uman capital and its mobility within regions play, therefore, a fundamental role
in the dynamics of entrepreneurship and economic growth. It is this role that pro-
vides the guiding question of this book. Human capital arises from three sources
(Becker 1 964 ): education, training and, perhaps most important for entrepreneur-
ship, experience in organizations i.e., competences and routines that arise using
technology, marketing, and fi nance in organizational contexts. Theories of human
capital present knowledge as the stock of creative ideas that provide individuals
with strengthened competences, behavioral characteristics, and cognitive skills
allowing them to develop a more productive and effi cient potential activity (Schultz
1 963; Becker 1 964; Mincer 1 974) . Faced with a scenario including a variety of
potentially profi table opportunities, those individual possessing greater human
capital are the ones more likely to recognize those opportunities, and mobilize and
organize the resources necessary to implement and exploit them, leading to
economic change.
Human capital has been subject to signifi cant attention by researchers interested
in uncovering the nature of its relationship with economic growth. However, most
of the literature on this subject—which is critical for the economic, social, and
fi nancial sustainability of countries and regions—has been dominated by the neo-
classical paradigm, thereby omitting the role played by a fundamental agent in the
functioning of capitalist economies, i.e., the entrepreneur. The pioneering works of
Lucas (1 988 ) and Romer (1 990 ), while recognizing the role of knowledge, eschewed
all consideration of human capital and entrepreneurship. The so-called
“Schumpeterian” models of endogenous growth (e.g., Aghion and Howitt 1 992 )
focus on innovation as a product of R&D efforts, and not of entrepreneurial action.
While the role of human capital (as it relates to training) is increasingly recognized
as a determinant factor of long-term growth (Mulligan and Sala-i-Martin 1995 ;
Bleaney and Nishiyama 2002) , there is little or no consideration of human capital
that is specifi c for entrepreneurship, or that emerges from organizational experience.
That omission leads us to invite the reader of this book to revisit the seminal
contributions of Schumpeter (1 961) and Kirzner (1 973) , and Baumol (1 968 , 2 002 )
who, while recognizing the exclusion of the entrepreneurship construct from the
theories of economic growth, establish entrepreneurial action and capabilities as
vital components of economic and social progress.
I t is not easy to determine which specifi c aspects of human capital contribute
more to entrepreneurial success. Davidsson and Honig (2 003 ) indicate that
the association between business performance and human capital may be confused
with a set of other factors, namely persistence and professional experience. Cultural
aspects can also moderate and blur this relationship. Lundström and Stevenson
1 Introduction 3
(2 001 ) point out that in the USA and some Western European countries, where there
is a more favorable perception of critical factors such as risk, competition, and indi-
vidualism, entrepreneurs will likely be more ambitious and the potential to enact
economic change through entrepreneurship will likely be greater.
D ifferences in culture arise, however, between much smaller geographical units
than countries. Such differences translate into institutions, fi rms, and individuals,
and result in different dynamics for entrepreneurship and industrial development.
The papers collected in this book add the regional element as a frame for the explo-
ration of the dynamics of entrepreneurship and growth. The regional dynamics of
industry growth are greatly infl uenced by employee mobility towards new fi rms.
Successful incumbent fi rms can serve, usually unintentionally, as training grounds
for their employees before they move on to work for, or indeed found new fi rms.
By locating in close proximity to previous employers and hiring local workers with
specifi c experience, in terms of the industry, entrepreneurs/founders strengthen the
geographical differences between regions concerning the number and quality of
companies.
The rich literature on geographical clusters which emerged from the seminal
works of Porter ( 1990) and Krugman ( 1991) has mostly focused on economic and
social mechanisms that arise from the benefi ts and costs or agglomeration: fi rms
and industries are attracted to a region by pools of labor and supporting businesses;
knowledge spillovers, networks and social capital. Only recently new work has
emerged positioning entrepreneurship at the center of the cluster phenomenon. In a
recent review, Chatterji et al. (2 013 ) point to a variety of factors which are deemed
to be spatial determinants of entrepreneurship, including the density of small busi-
nesses. Delgado et al. (2 010 ) argue that the presence of related industries in a loca-
tion fosters entrepreneurship by lowering the cost of starting a business, enhancing
opportunities for innovation, and enabling better access to a more diverse range of
inputs and complementary products. Entrepreneurship is gradually being recog-
nized as occupying the center stage in the clustering phenomenon.
W hile by reprising the role of entrepreneurship in economic growth researchers
revisited the works of Schumpeter, Kirzner, and Baumol, by bringing to the fore the
role of entrepreneurship in the cluster phenomenon, researchers are now revisiting
the work of Marshall ( 1922 ), Piore and Sabel ( 1984 ), Becattini (1 989 ), and Markusen
( 1996 ) on industrial districts. Marshall’s view of industrial districts can be extended
to explore the nature of networks of business relationships and competences,
institutional settings, and social and cultural characteristics of the regions where
clusters originate. It seems clear that theoretical approaches that reduce the cluster
phenomenon to the treatment of one critical variable—e.g., scale and transport
costs, or knowledge spillovers—are unlikely to provide an explanation for cluster
emergence and survival. It seems essential to integrate institutional settings, tech-
nology and production, and the life of the local community into a single model.
It is possible to suggest several paths towards deepening research on the role of
entrepreneurship on the growth of regions. One can explore: (1) the motivations and
effects associated with the high incidence of employee exchange between clients
and suppliers; (2) the high degree of cooperation between competitors to reduce