Search Results (10)

The digital economy (DE) is a new driver for enhancing total factor productivity (TFP). Using panel data from 30 provinces in China between 2011 and 2022, this study measures DE and TFP using the entropy-weighted TOPSIS method and the Global Malmquist–Luenberger method and further examines the impact of DE on the TFP of industries. The main findings are as follows: (1) DE can significantly improve TFP, though the extent of improvement varies. DE has the greatest impact on the TFP of the service industry, followed by the manufacturing industry, with the weakest effect on the agricultural industry. (2) The enhancement effect of DE on agriculture and the service industry is more pronounced in the central and western regions, while the improvement effect on manufacturing is more evident in the eastern region. (3) DE has facilitated the improvement of TFP in manufacturing industries such as textiles and special equipment manufacturing, as well as in service industries like wholesale and retail. However, it has not had a significant impact on the TFP of industries such as pharmaceutical manufacturing and real estate. This study has significant theoretical value and policy implications for China and other developing countries in exploring DE and achieving high-quality industrial development. Full article

Smart city construction aims to promote the digital transformation of cities, support the modernization of urban governance, and stimulate urban innovation and development. In this paper, we analyze the role of smart city construction on economic growth and the impact mechanism driving this. In terms of theoretical analysis, we discuss the role of smart city construction in economic growth based on Schumpeterian innovation theory. In terms of empirical analysis, we evaluate the impact of smart city construction on economic growth with panel data of Chinese prefecture-level cities from 2011 to 2019, using time-varying difference-in-differences models and the event study method. The findings of the research indicate that the construction of smart cities has a positive effect on regional economic growth and the results can be confirmed through a series of robustness tests. Smart city construction generates mediating effects by enhancing urban innovation capability and entrepreneurship, thereby promoting urban economic growth. Furthermore, the impact of smart city construction on economic growth exhibits heterogeneous effects due to variations in the degree of marketization. In regions with a higher level of marketization, the promotional effect of smart city construction on economic growth is stronger. Consequently, it is imperative to intensify the implementation of smart city construction and persistently pursue market-oriented reforms. Full article

Social entrepreneurship has gained increasing attention as a means to address social problems, including poverty, in Nigeria. Poverty is a major challenge in Nigeria, with a poverty rate of over 40%. Poverty alleviation is critical to achieving sustainable development in the country. Social entrepreneurship can play a key role in addressing poverty by creating jobs, providing access to goods and services, and promoting economic growth. Hence, this study examines bolstering the impact of social entrepreneurship and poverty alleviation for sustainable development in Nigeria. The research focuses primarily on fostering economic, social, and environmental improvements, as well as improving people’s lives. Three hypotheses were formulated to help accomplish the primary objectives of the study. The Opportunity-Based Entrepreneurship Theory, Social Network Theory, and Schumpeterian Theory of Innovation were used to explain the objective of the study. In this study, a purposive sampling technique was used, and 300 copies of structured questionnaires were administered to selected social entrepreneurs of which 262 copies were retrieved and used for the analysis. The data were analyzed using structural and measurement models, and the path coefficient was determined using PLS-SEM. The significance level was calculated using the bootstrapping method. The results from the test of hypotheses showed that; the most significant predictor of poverty alleviation is social innovation (β = 0.376, p < 0.05), followed by the social value (β = 0.314, p < 0.05), and finally, social impact (β = 0.231, p < 0.05). This study concludes that social innovation is fundamental for empowering individuals and communities to lift themselves out of poverty and achieve long-term prosperity. The study recommends that to promote sustainable social entrepreneurship and poverty alleviation in Nigeria, the government can create policies and programs that support social innovation, such as providing access to funding, business training, and mentorship. The government can also collaborate with entrepreneurs and organizations to promote their initiatives and create a supportive ecosystem for social entrepreneurship. Full article

The concept of a Lean Business Model (LBM) is derived from the Business Model Canvas (BMC), which is primarily focused on well-established businesses. However, in a competitive environment typified by Schumpeterian waves of creative destruction, new businesses in the entrepreneurial ecosystem face the strategic challenge of constantly adapting and evolving alongside well-established companies. This proposes that the threat of newcomer disruption may affect all types of organisations, including small- and medium-sized enterprises (SMEs), particularly small and young businesses. The presence of SMEs is one of the most crucial factors in the growth of Malaysia’s economy. Although SMEs contribute significantly to the economy, do they provide a better entrepreneurial ecosystem? This study aims to conceptualise how the integration of lean business and the Theory of Inventive Problem Solving (TRIZ) might improve the entrepreneurial ecosystem in Malaysia. The development of this model will be conducted using a triangulation of qualitative data sources comprising document analysis, interviews, and archival records. The validity of the findings will be examined based on the dimensions of trustworthiness to ensure that data obtained are accurate and reliable. The anticipated results of this study may show the impact of a new hybrid between lean business and the TRIZ model on the Malaysian SMEs entrepreneurial ecosystem. This new model will provide fresh insights into ways to transform the entrepreneurial ecosystem in line with the National Entrepreneurial Policy (NEP) 2030. Furthermore, the SMEs can be strengthened for the purpose of expanding their proportion of Gross Domestic Product (GDP) and exports, not just locally but also globally. Full article

An issue with estimating the impact of industrial support is that the firms that receive support may be politically connected, introducing omitted variable bias. Applying fixed-effects regressions on Vietnamese panel data containing several proxies for political connectedness to correct this bias, we find that firms that receive industrial support in the form of tax holidays experience more rapid productivity growth, particularly in R&D-intensive industries, and less so among politically connected firms. These findings do not appear to be due to the presence of financing constraints. We then develop a second-generation Schumpeterian growth model with many industries, and show that tax holidays disproportionately raise productivity growth in R&D-intensive industries. These results are significant and important for governments, especially those in transition and developing countries, in better targeting their industrial policy to facilitate higher productivity growth. Full article

Most economic downturns have stemmed from inefficiencies in the economic system. This research paper aims at investigating the impact of the COVID-19 pandemic—an exogeneous health crisis—on global mergers and acquisition (M&A) activity. By gathering statistical data about global transaction volume, value, and type, the study aims at getting a pulse of how mergers, acquisitions, and other restructuring activities have been utilized to support corporate objectives amidst these unprecedented times. While the full-fledged impact of COVID-19 cannot be fully captured at the moment (early 2021), the study attempts to illustrate how this change to economic stability caused a Schumpeterian creative destruction of industries. As firms prepare for the growth that will follow this downturn, M&A will enable companies to look into a future infused with technology and structurally different business models. This research paper thus captures the deliberate transformation occurring in the deal world to discuss the possible outlook of the M&A deal market in the post-pandemic world. Full article

We use a dynamic factor model to provide a semi-structural representation for 101 quarterly US macroeconomic series. We find that (i) the US economy is well described by a number of structural shocks between two and five. Focusing on the four-shock specification, we identify, using sign restrictions, two policy shocks, monetary and fiscal, and two non-policy shocks, demand and supply. We obtain the following results. (ii) Both supply and demand shocks are important sources of fluctuations; supply prevails for GDP, while demand prevails for employment and inflation. (ii) Monetary and fiscal policy shocks have sizable effects on output and prices, with no evidence of crowding-out of private aggregate demand components; both monetary and fiscal authorities implement important systematic countercyclical policies reacting to demand shocks. (iii) Negative demand shocks have a large long-run positive effect on productivity, consistently with the Schumpeterian “cleansing” view of recessions. Full article

Health and social services (HSS) are now, more than ever, at the center of the debate of public policy. We are interested in studying the HSS services innovations from the networked-governance strategy standpoint. With this research, we contribute by analyzing the criteria leading to the formation of HSS public service innovation networks (HSS PSINs). These criteria are important because they may result in the much-needed empirical foundation of the metagovernance of public networks for sustainable innovation. Our analysis rests on neo-Schumpeterian interpretations of product, process, organizational, market, and input innovations, and their characteristics. By an empirical partial least squares structural equations model, we present here the relationships between those characteristics and HSS PSINs. Our intent is that these relationships become clearer, and help enhance HSS PSINs metagovernance—i.e., their control, democratic legitimacy, and accountability by public decision-makers. Hence, our research supports the voices for an extended use of networks for policy and service collaborative innovation for sustainability. Full article

This study reports on the cross-country heterogeneity in youth awareness and expectations about genetically modified organisms (GMOs) and nuclear power technology (NPT) within the North American free trade area (NAFTA). Models are estimated with data on youth respondents from the USA, Canada and Mexico, using seemingly unrelated bivariate weighted ordered probit regression, with maximum simulated likelihood estimation. Our findings show that the diffusion of technology and information within the trade bloc, for the 20 years prior to the 2015 data collection period, did not significantly contribute to cross-country convergence in youth awareness and expectations about GMOs and NPTs. Indeed, with regard to awareness, compared to youth from the USA, those from Canada show 15% (GMOs) and 7.1% (NPT) more awareness, respectively; while youth from Mexico show 34.4% and 19.5% less awareness about GMOs and NPT, respectively. With respect to expectations about future developments of the two technological artifacts, compared to youth from the USA, those from Canada and Mexico are 34.4% and 39.9% more optimistic about GMOs, respectively, while 15% and 49.7% are more optimistic about NPT. Overall, our findings show that the youth population within NAFTA is 2.5% and 6.7% more optimistic about GMOs and NPT for each level of increase in their awareness about the two technologies, respectively. Theoretically, our results seem to reject the hypothesis of NAFTA being a technology convergence country club in the Schumpeterian view, while seemingly supporting the existence of heterogeneous growth regimes within NAFTA. Full article

Currently, the world economy is approaching a near-zero growth rate. Governments should move from a market-failure-oriented to a system-failure-oriented approach to understanding this problem, and transform to an entrepreneurial state to motivate the Schumpeterian dynamics of open innovation. We want to answer the following research question in this study: “How can a government enact policies to conquer the growth limits imposed on the economy by inequality or the control of big businesses?” First, we conducted a literature review to establish the concept of building a causal loop model of basic income with open innovation dynamics. Second, we built a causal loop model which includes basic income and all factors of open innovation dynamics. Third, we proved our causal loop model through a meta-analysis of global cases of basic income. Our research indicates that reflective basic income with permissionless open innovation, capital fluidity, a sharing economy, and a platform tax can motivate open innovation dynamics and arrive at a method by which an entrepreneurial state can conquer the growth limits of capitalism. Full article