Enrico Santarelli

Enrico Santarelli
University of Bologna | UNIBO · Department of Economics DSE

PhD

About

134
Publications
36,670
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4,848
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Introduction
D.Phil. University of Sussex; 1987 – 1992: Research Fellow - University G. D'Annunzio; 1992 – 2000: Associate Professor of Economics - University of Bologna; 2000 - : Full Professor of Economics - University of Bologna: 2010: Senior scientist - JRC-IPTS of the European Commission; Associate editor: Small Business Economics; Review editor: Journal of Business Venturing; Member of the Executive Committee of EARIE (2004 – 2010; Research: entrepreneurship economics; economics of innovation.
Additional affiliations
November 1992 - present
University of Bologna
Position
  • Professor (Full)

Publications

Publications (134)
Article
Focusing on a sample of 22 industries and 22 OECD countries and controlling for a full set of year-, industry-, and country fixed effects (and their interactions), we first show that intellectual property rights (IPRs) protection, by means of both constitutional provisions and ordinary laws, is positively associated with the dynamics industry-level...
Preprint
Full-text available
The recent SARS-Cov-2 pandemic has contributed to several corporate crises. As a result, many Small- and Medium-Sized Enterprises (SMEs) in Italy have filed for bankruptcy in the first quarter of 2020. In addition to a gigantic macroeconomic effect, the lockdown has impacted individuals to a large ex- tent. In this article, we investigate the behav...
Article
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This paper investigates the rationales for the successful economic transition in a transition country through the lens of organizational ecology theory and institutional theory. Initially, the new private sector emerges and survives because of receiving “legitimacy spillovers” from the well-legitimized transitional mixed sector that shares some mar...
Article
This study provides a theoretical framework and empirical evidence to argue that a knowledge management process under the open innovation paradigm brings a viable solution for firms, especially those in transition economies, to acquire valuable knowledge-based dynamic capabilities to respond to environmental changes and achieve desirable organizati...
Article
Literature on the formation of intention toward entrepreneurship in adolescents has focused on either parental (vertical) transmission of social capital or network effects from peers or neighbors (horizontal). Considering the simultaneous effect of parents, peers, and neighbors, we suggest that such three levels identify a mechanism whereby the ind...
Chapter
Full-text available
This chapter aims to find if trade-off theory or pecking order theory best explain the capital structure of non-state firms during the post-transition process in Vietnam. We investigate the effect of human capital, institutional quality, and their interaction on the capital structure decision. Findings suggest the capital structure of Vietnamese fi...
Chapter
In this chapter, Enrico Santarelli discusses the profound impact that David had on his career. Beginning with a conference in Budapest, Santarelli and David became close friends and colleagues. They went on to collaborate on many papers and projects, several of which Santarelli highlights below.
Article
In this paper, we first develop an original theory in which, based on their individual skills and the quality of their business, entrepreneurs can keep their original business (and thus remain novice entrepreneurs), start and keep a new business in the same or another sector along their current business (therefore becoming portfolio entrepreneurs),...
Chapter
Full-text available
The aim of this paper is to find which of two theories of capital structure—trade-off theory or pecking order theory—best explains the capital structure decision of non-state firms during the post-transition process in Viet Nam. We also investigate the effect of human capital, institutional quality, and their interaction on the capital structure de...
Preprint
This paper investigates the rationales for the successful economic transition in Vietnam by applying organizational ecology theory. We claim that Vietnam could achieve a smooth transition because the country preserved the strong institutional capacity of the state in parallel with an instant market liberalization approach. Instead of transforming s...
Article
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Substantial and systematic cross-country variation in entrepreneurship rates has been found in various studies. We attempt to explain such differences focusing on the interaction between institutional factors and population psychological characteristics. Constitutional provisions supporting economic freedom is our measure of the institutional conte...
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We study the economic value of both embodied technological change and Research and Development (R&D) investment as proxies for the inputs of innovative activities conducted by Vietnamese firms. Our main focus is on the profitability of young innovative companies (YICs), private innovative companies (PICs), and small and young companies (SYCs). In p...
Article
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The prevalence of entrepreneurship varies not only across regions but also among industries. Using a unique panel dataset of 60 two-digit industries across 64 provinces from 2000 to 2010 in Vietnam, we investigate the importance of spatial and sectoral heterogeneity in an analysis of the determinants of entrepreneurship and empirically explore the...
Article
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This paper provides empirical evidence supporting the view that constitutions are the primary and fundamental institutional determinant of entrepreneurship. It shows that some of the provisions contained in national constitutions are positively and significantly associated with a standard measure of entrepreneurial dynamics, namely the rate of new...
Article
Full-text available
This paper is based upon the assumption that a firm's profitability is determined by its degree of diversification which is, in turn, strongly related to the antecedent decision to carry out diversification activities. This calls for an empirical approach that permits the joint analysis of the three interrelated and consecutive stages of the overal...
Article
Using firm-level data for 28 transition countries in Eastern Europe and Central Asia over the 2002-2009 period, this paper analyzes whether differences in the functioning of intellectual property rights (IPRs) systems—measured along various dimensions, including de facto enforcement and de jure patent and copyright protection—affect a firm’s propen...
Article
This paper provides empirical evidence supporting the view that constitutions may influence the organization of economic activities. Dealing with the issue of the institutional determinants of entrepreneurship, it shows that some of the provisions contained in national constitutions are positively and significantly associated to a standard measure...
Article
This paper investigates factors associated to a higher likelihood of engaging in Intellectual Property Right (IPR) activities in the 103 Italian provinces for the period 1998–2007. We distinguish between patent and trademark activity and find that their determinants are to some extent different. Both patent and trademark activity are influenced by...
Article
This paper investigates the determinants of innovative activities and the innovation-performance relationship for the firm population in Vietnam in three consecutive stages: decision – investment – outcome. Cragg's two-tiered dynamic type-2 Tobit model and instrumental variable GMM method are applied to control for the selectivity and endogeneity o...
Article
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Considering the case of diversified firms within a developing/transition country such as Vietnam, this paper investigates diversification relatedness while taking into account both firm- and industry-specific components. The high volatility of the dynamics of diversification observed in Vietnam suggests the hypothesis that firms decide to enter int...
Article
Intellectual Property Rights (IPRs) are a key driver of economic growth as they provide agents with incentives to invest in Research and Development (R&D). The importance of IPRs should however vary when one moves along the technological frontier as firms can rely upon other mechanisms (i.e. imitation, equipment) to bring new products to the market...
Article
Full-text available
Entrepreneurship has been among the key driving forces of the emergence of a dynamic private sector during the recent decades in Vietnam. This article addresses for Vietnam the questions “how capital constraints affect the performance of family firms” and “how entrepreneurs’ human and social capital interact with capital constraints to leverage ent...
Article
This paper is based upon the assumption that firm profitability is determined by its degree of diversification which in turn is strongly related to the antecedent decision to carry out diversification activities. This calls for an empirical approach that permits the joint analysis of the three interrelated and consecutive stages of the overall dive...
Article
Full-text available
This study investigates the effects of human capital, social capital and their interaction on the performance of 1,398 Vietnamese new-born firms. Operating profit is used as the measure of success. Human capital is captured by individual-level professional education, start-up experience, and learning. Whereas the first two dimensions of human capit...
Article
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In this paper we address a key issue in the current debate on economic development: the effect of globalization on poverty. We review the empirical evidence on the relationship between globalization (broadly defined) and within-country poverty in the Developing Countries (DCs). To measure globalization we use, among others, standard indices of trad...
Article
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According to Gibrat’s Law of Proportionate Effect, the growth rate of a given firm is independent of its size at the beginning of the examined period. This paper investigates whether Gibrat’s Law holds for new entrants in a given industry: that is for new small firms in the early stage of their life cycle. The main finding is that in some (but not...
Article
New entrepreneurial ventures may represent a viable and effective mechanism to transform academic knowledge into regional economic growth. We test this notion for the Italian provinces between 2001 and 2006. We evaluate three outputs of academic activities: teaching, research and Intellectual Property Rights (IPR) activities management. New venture...
Article
This paper analyzes the relationship between the performance of incumbent firms and the net entry of new firms by combining different theoretical views of entrepreneurship. It shows that new knowledge and ideas created but not commercialized by incumbents are an important source of entrepreneurial opportunities for nascent firms. Different regressi...
Article
There is considerable variation in the firm exit rate across the 103 provinces in Italy. This paper investigates a range of determinants of the exit rate for twelve different sectors in the Italian provinces for a period of eleven years. The analysis shows that the exit rate is positively affected by entry in the previous year (displacement) in the...
Article
Full-text available
The anecdotal evidence provided by the literature on high tech clusters has paved the way to systematic explorations of the localized effects of academic research on technological success and economic development. Prime drivers of such development are new entrants. New entrants are more likely to embark in the risky activity of developing new produ...
Article
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This paper provides evidence on the mechanisms influencing the patent output of a sample of biotechnology firms from the input of indirect knowledge acquired from capital expenditures and direct knowledge from in-house R&D. Statistical models of counts are used to analyse the relationship between patent applications and R&D investment and capital e...
Article
Full-text available
Santarelli E., Carree M. and Verheul I. Unemployment and firm entry and exit: an update on a controversial relationship, Regional Studies. The present study explores the relationship between unemployment and subsequent firm entry and exit for 103 Italian provinces for the period 1997–2003. Two models are estimated. The first model concentrates on u...
Chapter
In this study, we test for the effect of public policies supporting entry in Italian regions on actual rates of new firm formation. To assess the effectiveness of entrepreneurship policy, we investigate the dynamics in six different sectors at the local level: Manufacturing, Construction, Commerce, Hotels and Restaurants, Transportation, and Financ...
Article
Full-text available
According to Gibrat’s Law of Proportionate Effect, the growth rate of a given firm is independent of its size at the beginning of the period examined. While earlier studies tended to confirm the Law, more recent research generally rejects it. This article reconciles these two streams of literature, taking into account the role of market selection a...
Article
Full-text available
The present study explores the impact exerted by a series of factors and processes including creativity, IPR activities, new business formation and the provision of amenities on economic growth for 103 Italian provinces (NUTS 3) over the period between 2001 and 2006. Provincial growth rates are measured alternatively by value added growth and emplo...
Article
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The aim of this paper is to test whether patent-based indicators are still reliable measures of innovativeness in light of organizational changes in the field of Intellectual Property Rights (IPR) protection and the regulatory reforms already occurred and under way, respectively, at the US Patent and Trademark Office (USPTO) and the European Patent...
Article
Full-text available
This study investigates the influence of the unemployment rate on firm entry, exit and net entry in Italian provinces. We attempt to explain these market dynamics in six different sectors, including manufacturing, construction, commerce, hotels and restaurants, transport and financial services. We control for other regional factors, such as patenti...
Article
The aim of this paper is to test whether patent-based indicators are still reliable measures of innovativeness in light of organizational changes in the field of Intellectual Property Rights (IPR) protection and the regulatory reforms already under way respectively at the U.S. Patent and Trademark Office (USPTO) and the European Patent Office (EPO)...
Article
Full-text available
This survey article aims at critically discussing the recent literature on firm formation and survival and the growth of new-born firms. The basic purpose is to single out the microeconomic entrepreneurial foundations of industrial dynamics (entry and exit) and to characterise the founder's ex - ante features in terms of likely ex-post business per...
Article
This study presents a systematic recognition of regional policies supporting new firm formation in Italy between 1997 and 2005, and performs an evaluation exercise (for the 1997- 2003 period) of their impact on gross entry, exit and net entry in Italian provinces. The analysis is conducted in relation to six different sectors, including manufacturi...
Article
Full-text available
This article investigates the determinants of new venture creation across industries and locations for 103 Italian provinces between 1997 and 2003. Allowing for differences in regional opportunities across industries, we investigate the impact of a range of factors, including policy initiatives, on new firm formation in manufacturing, retailing and...
Article
Full-text available
This paper addresses a key issue in the current debate on economic development: the impact of glob-alization on poverty. After having discussed the problems related to the definition and measurement of both poverty and globalization, we perform a panel analysis which adds to recent literature by explicitly considering relative poverty and by conduc...
Article
Recent empirical literature has introduced the 'Skill Biased Organizational Change' (SBOC) hypothesis, according to which organizational change can be considered as one of the main causes of the skill bias (increase in the number of highly skilled workers) exhibited by manufacturing employment in developed countries. This paper focuses on the impor...
Book
What is the economics of entrepreneurship about? Entrepreneurship, Growth and Innovation aims at giving a comprehensive answer to this question, claiming that this recently established discipline should focus on the development of a framework of analysis able to integrate the understanding of the determinants and the effects of both entrepreneurshi...
Article
This chapter focuses on some crucial aspects of the development of industrial districts in the Emilia Romagna region of Italy, where this type of spatial agglomeration of industrial firms (on which see Brenner, 2004) has flourished since the period immediately after the Second World War. Industrial districts specializing in manufacturing are so int...
Article
Previous studies have suggested that technological change is the main cause of the recent increase in demand for highly skilled workers in developed countries. However, a more recent strand of literature has also introduced the “Skill Biased Organisational Change” hypothesis, according to which the increasing diffusion of new organisational practic...
Article
Full-text available
The aim of this article is to analyze the survival patterns of a group of family firms which have already spent at least 25 years in the market. To this end, we use the Kaplan-Meier product limit estimator supplemented with qualitative information gathered by direct observation and discussions with entrepreneurs. The main findings are that small fa...
Article
Full-text available
Recent empirical literature has introduced the "kill Biased Organizational Change" hypothesis, according to which organizational change can be considered as one of the main causes of the skill bias (increase in the number of highly skiled workers) exhibited by manufacturing employment in developed countries. In this paper, a specific branch of the...
Article
Full-text available
The aim of this paper is to analyze the evolution of the size distribution of young firms within some selected industries, using as a background three theories of the distribution of firm sizes that identify a process of passive learning (Jovanovic 1982), one of active learning (Ericson and Pakes 1995), and an evolutionary one (Audretsch 1995) in t...
Article
Full-text available
We analyse both the theoretical and the empirical side of the issue of R&D spillovers. Each firm's R&D costs are increasing in the amount of information transmitted to other firms, and we account for the possibility that firms control spillovers. We consider both Cournot-Nash and Cournot-Stackelberg behavior. The empirical analysis suggests that (i...
Article
Full-text available
Several noted surveys on intra-industry dynamics have reached the conclusion from a large body of evidence that Gibrat's Law does not hold. However, almost all of these studies have been based on manufacturing or large scale services such as banking and insurance industries. There are compelling reasons to doubt whether these findings hold for smal...
Article
Full-text available
Although technological change is certainly associated with the skill bias (increase in the number of highly skilled workers) exhibited by manufacturing employment in developed countries over the last decades, recent papers have shown that upskilling is more a function of the reorganisational strategy than a consequence of technological change alone...
Article
According to Gibrat's Law of Proportionate Effect, the growth rate of a given firm is independent of its size at the beginning of the period examined. While earlier studies tended to confirm the Law, more recent research generally rejects it. This article reconciles these two streams of literature, taking into account the role of market selection a...
Article
The aim of this paper is to analyze the evolution of the size distribution of young firms within some selected industries, using as a background three theories of the distribution of firm sizes that identify a process of passive learning (Jovanovic 1982), one of active learning (Ericson and Pakes 1995), and an evolutionary one (Audretsch 1995) in t...
Article
Full-text available
This paper investigates some crucial aspects of the recent development of industrial districts in the Emilia-Romagna region of Italy, where this type of spatial agglomeration of industrial firms has flourished since the period immediately after the Second World War. In particular, it is aimed at comparing the technological strength (in terms of pat...
Article
Full-text available
According to Gibrat's Law of Proportionate Effect, the growth rate of a given firm is independent of its size at the beginning of the examined period. Aimed at extending this line of investigation, the present paper uses quantile regression techniques to test whether Gibrat's Law holds for new entrants in a given industry: that is for new small fir...
Article
Full-text available
According to Gibrat’s Law of Proportionate Effect, the growth rate of a given firm is independent of its size at the beginning of the period examined. In contrast to the previous literature on the subject, this paper seeks to test the Law by taking account of both the entry process and the role of survival/failure in reshaping a given population of...
Article
Full-text available
As a specific institution of distributive trades, e-commerce displays similarities with retail stores and mail order companies. As well as providing theoretical support for the assumption that e-commerce is a way to sell certain goods and services at prices potentially lower than those of traditional distributive channels, this paper analyses its i...
Article
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The hypothesis underlined in this paper is that apart from infant mortality there is another relevant phenomenon taking place within new-born Small Business Enterprises (SBEs) in the period immediately after entry; namely that the smaller ones among them, having entered with a marked sub-optimal scale,adjust their size towards the mean size exhibit...
Article
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[fre] Plusieurs enquêtes sur les dynamiques internes des industries ont récemment permis d'en conclure que la loi de Gibrat ne tient pas. La découverte la plus importante a révélé que plus une entreprise grandit, plus son taux de croissance diminue. Dans ce document (à la recherche de preuves supplémentaires confortant les résultats obtenus récemme...
Article
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Exxon Mobil and ConocoPhillips stock price has been predicted using the difference between core and headline CPI in the United States. Linear trends in the CPI difference allow accurate prediction of the prices at a five to ten-year horizon.
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This paper analyses the impact of subsidies for the promotion of Italian joint ventures (JVs) aimed at LDCs and transition economies. The empirical analysis is carried out on a unique dataset of 172 JVs interviewed during 1998 by means of a closed-answer qualitative-quantitative questionnaire. The main finding of the study is that, although there i...
Article
Full-text available
Public subsidies in support of new firm foundation are among the most frequently used instruments of industrial policy in the Euro zone. This paper analyses their effectiveness and efficiency vis-ý-vis some features of the overall process of industry dynamics in Italian manufacturing. To this end, the survival and growth patterns of new small firms...
Article
Full-text available
The aim of this paper is to analyze the evolution of the size distribution of young firms within some selected industries, trying to assess the empirical implications of different models of industry dynamics: the model of passive learning (Jovanovic 1982), the model of active learning (Ericson and Pakes, 1995), and the evolutionary model (Audretsch...
Article
Full-text available
The aim of this paper is to shed light on the phenomenon of firm growth, analyzing the evolution of young firms within some selected industries. We find that the firm size distribution is fairly skewed to the right during the infancy stage, whereas it converges towards a more symmetric distribution, via selection mechanisms, with the passing of tim...
Article
Full-text available
This paper follows a 'geography of innovation' approach to test for France the hypothesis that patent activity within each administrative region is related to corporate expenditures on R and D in that territory, as well as research expenditures undertaken in universities located in the same area. It emerges that French manufacturing firms (both pri...
Article
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This paper analyses the relationship between size and growth for a group of Italian newborn firms in the instruments industry. The main finding is that Gibrat's Law of Proportionate Effect exhibits a behaviour dependent on the firm's life cycle. In particular, even if in the years immediately following start-up the law could be rejected, since smal...
Article
Full-text available
The aim of this paper is to analyze the evolution of the size distribution of young firms within some selected industries, trying to assess the empirical implications of different models of industry dynamics: the model of passive learning (Jovanovic 1982), the model of active learning (Ericson and Pakes, 1995), and the evolutionary model (Audretsch...