Browsing by Subject "L26"

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  • Kerr, William R.; Nanda, Ramana (2015)
    Bank of Finland Research Discussion Papers 28/2015
    We review the recent literature on the financing of innovation, inclusive of large companies and new startups. This research strand has been very active over the past five years, generating important new findings, questioning some long-held beliefs, and creating its own puzzles. Our review outlines the growing body of work that documents a role for debt financing related to innovation. We highlight the new literature on learning and experimentation across multi-stage innovation projects and how this impacts optimal financing design. We further highlight the strong interaction between financing choices for innovation and changing external conditions, especially reduced experimentation costs.
  • Pekkala Kerr, Sari; Kerr, William; Özden, Çağlar; Parsons, Christopher (2017)
    Bank of Finland Research Discussion Papers 2/2017
    Forthcoming in Journal of Economic Perspectives
    The global distribution of talent is highly skewed and the resources available to countries to develop and utilize their best and brightest vary substantially. The migration of skilled workers across countries tilts the deck even further. Using newly available data, we first review the landscape of global talent mobility, which is both asymmetric and rising in importance. We next consider the determinants of global talent flows at the individual and firm levels and sketch some important implications. Third, we review the national gatekeepers for skilled migration and broad differences in approaches used to select migrants for admission. Looking forward, the capacity of people, firms, and countries to successfully navigate this tangled web of global talent will be critical to their success.
  • Pekkala Kerr, Sari; Kerr, William; Özden, Çağlar; Parsons, Christopher (2017)
    Bank of Finland Research Discussion Papers 7/2017
    This paper reviews recent research regarding high-skilled migration. We adopt a data-driven perspective, bringing together and describing several ongoing research streams that range from the construction of global migration databases, to the legal codification of national policies regarding high-skilled migration, to the analysis of patent data regarding cross-border inventor movements. A common theme throughout this research is the importance of agglomeration economies for explaining high-skilled migration. We highlight some key recent findings and outline major gaps that we hope will be tackled in the near future.
  • Ghani, Ejaz; Goswami, Arti Grover; Kerr, William (2017)
    World Bank Economic Review Supplement 1, March
    We investigate the impact of the Golden Quadrilateral (GQ) highway project on the spatial organization and efficiency of manufacturing activity. The GQ project upgraded the quality and width of 3,633 miles of roads in India. We use a difference-in-difference estimation strategy to compare non-nodal districts based upon their distance from the highway system. For the organized portion of the manufacturing sector, we find that GQ led to improvements in both urban and rural areas of nonnodal districts located 0–10 km from GQ. These higher entry rates and increases in plant productivity are not present in districts 10–50 km away. The entry effects are stronger in rural areas of districts, but the differences between urban and rural areas are modest relative to the overall effect. For the unorganized sector, we do not find material effects from the GQ upgrades in either setting. These findings suggest that in the time frames that we can consider—the first five to seven years during and after upgrades—the economic effects of major highway projects contribute modestly to the migration of the organized sector out of Indian cities but are unrelated to the increased urbanization of the unorganized sector.
  • Pekkala Kerr, Sari; Kerr, William R. (2016)
    Bank of Finland Research Discussion Papers 33/2016
    We examine immigrant entrepreneurship and the survival and growth of immigrant-founded businesses over time relative to native-founded companies. Our work quantities immigrant contributions to new firm creation in a wide variety of fields and using multiple definitions. While significant research effort has gone into understanding the economic impact of immigration into the United States, comprehensive data for quantifying immigrant entrepreneurship are difficult to assemble. We combine several restricted-access U.S. Census Bureau data sets to create a unique longitudinal data platform that covers 1992-2008 and many states. We describe differences in the types of businesses initially formed by immigrants and their medium-term growth patterns. We also consider the relationship of these outcomes to the immigrants’ age at arrival to the United States.
  • Pekkala Kerr, Sari; Kerr, William (2020)
    Research Policy 3 ; April
    We study immigrant entrepreneurship in 2007 and 2012 using the Survey of Business Owners. First-generation immigrants create about 25% of new firms in America, but this share exceeds 40% in some states. Conditional on basic regression controls, immigrant-owned firms tend to create fewer jobs than native-owned firms, have comparable pay levels, offer fewer benefits, and engage more in international activities. Prominent tech clusters display quite pronounced shares of immigrant entrepreneurs. Our results suggest that most of the impact of immigrant high-tech entrepreneurship for tech centers happens through the quantity dimension: Silicon Valley and similar tech hubs attract many immigrant founders.
  • Bozkaya, Ant; Kerr, William R. (2013)
    Bank of Finland Research Discussion Papers 30/2013
    Published in Journal of Economics and Management Strategy, Volume 23, Issue 4, 1 December 2014: 776-810
    European nations substitute between employment protection regulations and labor market expenditures (e.g., unemployment insurance benefits) for providing worker insurance. Employment regulations more directly tax firms making frequent labor adjustments than other labor market insurance mechanisms. Venture capital investors are especially sensitive to these labor adjustment costs. Nations favoring labor market expenditures as the mechanism for providing worker insurance developed stronger venture capital markets over 1990-2008, especially in high volatility sectors. In this context, policy mechanisms are more important than the overall level of worker insurance. JEL Classification: G24, J21, J65, L26, M13, O31, O32, O52. Key Words: employment protection regulations, dismissal costs, unemployment insurance benefits, private equity, venture capital, entrepreneurship.
  • Beck, Thorsten; Degryse, Hans; De Haas, Ralph; van Horen, Neeltje (2014)
    BOFIT Discussion Papers 14/2014
    Using a novel way to identify relationship and transaction banks, we study how banks’ lending techniques affect funding to SMEs over the business cycle. For 21 countries we link the lending techniques that banks use in the direct vicinity of firms to these firms’ credit constraints at two contrasting points of the business cycle. We show that relationship lending alleviates credit constraints during a cyclical downturn but not during a boom period. The positive impact of relationship lending in an economic downturn is strongest for smaller and more opaque firms and in regions where the downturn is more severe.