Effects of Regional Human Capital Structure on Business Entry: A Comparison of Independent Startups and New Subsidiaries in Different Industries

This paper aims to investigate the regional determinants of entry with special attention to the effects of regional human capital, using prefecture-level data from Japan. On the basis of some recent studies in the field, we investigate the effects of several regional factors on business entry, distinguishing between independent startups and new subsidiaries of existing firms on the one hand, and comparing different sectors on the other. Using pooled regional data at the prefecture level for our periods between 1996 and 2006, we estimate the impact of various regional factors, including human capital structure, on the number of independent startups and new subsidiaries for each industry sector, simultaneously. Estimation results demonstrate considerable differences between independent startups and subsidiaries as well as among different industry sectors with regard to the impact of regional human capital structure on business entry. First, the entry of independent startups in the manufacturing sector is positively related with regional human capital. Second, in contrast to our hypothesis, we found a positive relationship between regional human capital structure and the entry of new subsidiaries in the service sector. Third, the regional human capital structure is more important for regional entrepreneurship in more technology-intensive (high-tech) service industries. Considering the possible implications, we suggest that the regional policy to activate business startups should focus more on the differences between encouraging local entrepreneurship and attracting new subsidiaries, and recognize that these differences may vary even within the service sector, depending on what type of human capital is required.entry, region, independent startup, subsidiary, entrepreneurial human capital

R&D Productivity and the Organization of Cluster Policy: An Empirical Evaluation of the Industrial Cluster Project in Japan

Industrial clusters have attracted increasing attention as important locations of innovation. Therefore, several countries have started promotion policies for industrial clusters. However, there are few empirical studies on cluster policies. This paper examines the effects of the “Industrial Cluster Project” (ICP) in Japan on the R&D productivity of participants, using a unique dataset of 229 small firms, and discusses the conditions necessary for the effective organization of cluster policies. Different from former policy approaches, the ICP aims at building collaborative networks between universities and industries and supports the autonomous development of existing regional industries without direct intervention in the clustering process. Thus far, the ICP is similar to indirect support systems adopted by successful European clusters. Our estimation results suggest that participation in the cluster project alone does not affect R&D productivity. Moreover, research collaboration with a partner in the same cluster region decreases R&D productivity both in terms of the quantity and quality of patents. Therefore, in order to improve the R&D efficiency of local firms, it is also important to construct wide-range collaborative networks within and beyond the clusters, although most clusters focus on the network at a narrowly defined local level. However, cluster participants apply for more patents than others without reducing patent quality when they collaborate with national universities in the same cluster region.Industrial cluster; University-industry partnership; Small and medium enterprise; R&D; Patent

Management of Cluster Policies: Case Studies of Japanese, German, and French Bio-clusters

This paper provides a detailed comparison of the following five cases of Japanese and European clusters in biotechnology: (1) Kobe Biomedical Innovation Cluster (KBIC) in Kobe (Japan), (2) Fuji Pharma Valley Cluster in Shizuoka Prefecture (Japan), (3) BioM Biotech Cluster in Munich (Germany), (4) BioRegion Rhine-Neckar in Heidelberg (Germany), and (5) Alsace BioValley Cluster in Strasbourg (France). We pay special attention to the cluster policy and its management by each region's core cluster management organization. Information on the focal clusters and the management of cluster policies has been obtained through interviews with the cluster directors and core staff in 2010 and 2011. We find several similarities and differences among the five cases of Japanese and European clusters. We also discuss how the management of cluster policies by the core management organizations may be related with the performance of regional clusters.management, cluster policy, regional cluster, R&D, biotechnology, international comparison

Impact of University Intellectual Property Policy on the Performance of University-Industry Research Collaboration

Despite various expected advantages, university-industry research collaboration (UIC), a relationship between two different worlds, often faces serious difficulties. Thus, the performance of UIC depends on the research partners’ strategies to bridge the gaps between them according to the institutional environment. In Japan, UIC has developed rapidly since the late 1990s based on drastic institutional changes regarding universities. We pay special attention to the role of the university intellectual property (IP) policy introduced after 2003 and empirically examine its impact on the performance of UIC projects. A clear and equitable IP policy that can be applied flexibly to the needs of partners would be optimal for a UIC to be efficiently managed. Otherwise, the project might face serious conflicts of interests and low incentive for cooperation. Using a sample of Japanese firms from our original survey, we find that the IP policy of partner universities indeed has a positive and significant impact on various performances of UIC projects, controlling for firm and project characteristics and considering potential selection bias from UIC participation.university, intellectual property policy, research collaboration, project performance, Japan

A Hidden Role of Public Subsidy in University-Industry Research Collaborations

Contractual and organizational characteristics of university-industry research collaboration (hereafter UIC) are keys to its success. In this respect, government can play essential roles in UIC: Public subsidy for research and development (hereafter R&D) is not only an important financial support for UIC, but may also be a useful channel to promote trust along with contractual agreements and information sharing among the members, which results in effective coordination and thus the success of UIC. However, few empirical studies investigate the latter role of public R&D subsidy in UIC. Thus, using original survey data, this paper empirically examines and find that public R&D subsidy improves coordination in UIC, including trust formation, contractual agreements, and communication quality between the partners as well as commitment by the partners.pubic subsidy, R&D, research collaboration, university, contract, trust

Subsidy and networking: The effects of direct and indirect support programs of the cluster policy

Industrial clusters have attracted considerable attention worldwide for their expected contribution to regional innovation. Recently, policymakers in various countries have developed specific cluster policies. However, there exist few empirical studies on cluster policies. In this study, we use original questionnaire data to empirically evaluate the Industrial Cluster Project (ICP) initiated by the Ministry of Economy, Trade and Industry in 2001. We address two research questions on the effect of the ICP: are the project participants who exploit various support programs more successful in alliance/network formation within the cluster than others and which kind of ICP support program contributes to firm performance. In a departure from previous such projects, the ICP aims at the autonomous development of regional industries and includes both direct R&D support and indirect networking/coordination support. The focus of public support for local firms has clearly shifted toward enabling networking and coordination for those who can help themselves Thus, we pay special attention to the differences between direct R&D support and indirect networking/coordination support, which indicate the conditions necessary for the effective organization of cluster policies to improve firm performance. Our empirical evaluation is based on a recent original survey of a sample of 511 firms. We first employ the propensity score and the difference-in-differences estimation to analyze the degree of alliance/network formation before and after participating in the ICP. Thereafter, we use Heckman’s two-step procedure and the negative binomial model to examine the effects of support programs on firm performance. The estimation results suggest that cluster participants who exploit support programs (especially indirect support measures) expand the industry-university-government network after participating in the ICP. Moreover, we find that not every support program contributes to firm performance; firms should therefore select the program that is most aligned with their aims. Indirect support programs have an extensive and strong impact on output, especially innovation outcomes, whereas direct R&D support has only a weak effect.cluster policy, industrial cluster, R&D support, subsidy, networking

Impact of University Intellectual Property Policy on the Performance of University-Industry Research Collaboration

Despite various expected advantages, university-industry research collaboration (UIC), a relationship between two different worlds, often faces serious difficulties. Thus, the performance of UIC depends on the research partners' strategies to bridge the gaps between them according to the institutional environment. In Japan, UIC has developed rapidly since the late 1990s based on drastic institutional changes regarding universities. We pay special attention to the role of the university intellectual property (IP) policy introduced after 2003 and empirically examine its impact on the performance of UIC projects. A clear and equitable IP policy that can be applied flexibly to the needs of partners would be optimal for a UIC to be efficiently managed. Otherwise, the project might face serious conflicts of interests and low incentive for cooperation. Using a sample of Japanese firms from our original survey, we find that the IP policy of partner universities indeed has a positive and significant impact on various performances of UIC projects, controlling for firm and project characteristics and considering potential selection bias from UIC participation.intellectual property, research collaboration, small business, Japan

Selling, Passing on or Closing? Determinants of Entrepreneurial Intentions on Exit Modes

Exit is an important part of the entrepreneurial lifecycle. In contrast to numerous previous studies on entry, however, little attention has been paid to entrepreneurial exit, and much less on exit modes thus far. Using a recent original survey data on small business owners in New Zealand, where a large majority of them prefer selling their firms when they exit, we empirically investigate the determinants of intended entrepreneurial exit modes: selling out, succession, or closure. Estimation results of multinomial logit analysis suggest that the intention to sell the business is significantly affected by the size and performance of the firm, the involvement of family and how the owner entered the business. Moreover, we find that the intention to liquidate the business is significantly affected by the size and performance of the firm and partly by family involvement in the business.entrepreneurial exit, liquidation, small and medium enterprise (SME), New Zealand

Ownership Structure and R&D Investment of Japanese Start-up Firms

In this paper, we analyze the influence of ownership structure on the research and development (R&D) investment of start-up firms. Previous studies on the relationship between ownership and R&D have concentrated on the large, established firms listed on the stock market and have focused on the concentration of ownership, regardless of the types of large shareholders. We argue that the type of large shareholders is an important factor in promoting R&D investment under asymmetric information and that R&D projects, particularly those of start-up firms, strongly depend on the financing received from venture capital firms and main banks. Using a unique data set of the Japanese start-up firms in the 1990s, we found that, even after controlling for the innovativeness prior to the venture capital firm or main bank relationship, the shareholding by venture capital firms and main banks have, in fact, positive and significant effects on the R&D investment of start-up firms.R&D, Ownership Structure, Start-up Firms, Venture Capital, Main Bank

An Inquiry into the Status and Nature of University-Industry Research Collaborations in Japan and Korea

University-industry collaboration (UIC) has become an increasingly frequent innovation strategy, especially in the Western hemisphere. But we know much less about such research collaborations in East Asia. This study explores and contrasts the current nature and status of UICs in Japan and Korea focusing on factors that facilitate the development and management of such research linkages. The findings indicate that UICs are path dependent, i.e. firms benefit from their experience with previous projects when collaborating with universities. At the same time, cultural factors appear to result in significant differences in the organization of UICs in Japan and Korea.University-industry collaboration, R&D collaboration, International comparison, Japan, Korea