Isidoro Romero

Production chains in an interregional framework : Identification by means of average propagation lengths

When linkages between industries are studied from the perspective of production chains, sequencing is important. In this respect, both the strength of the linkages and the distance between industries are relevant. Distance is measured by the average propagation length, defined as the average number of steps it takes a stimulus in one industry to propagate and affect another industry. Using the 1985 intercountry input—output table for six European countries, we present three applications—visualizing the production structure by graphing its production chains, analyzing intercountry linkages between industries, and determining the role that each country plays within the system.

Analysing the composition of the SME sector in high- and low-income regions: Some research hypotheses

Certain qualitative characteristics of the small- and medium-sized enterprises (SMEs) operating within a territory might be essential to explain their macroeconomic impact. From this perspective, this article explores the relationship between the composition of the SME sector and the level of regional economic development. In this regard, a conceptual framework to analyse the composition of SME sectors is proposed considering two key aspects: on the one hand, different dimensions of SMEs’ entrepreneurial orientation – innovation, cooperation, proactivity and quality orientation; and, on the other hand, the role of the external effects resulting from the inter-firm productive linkages within a specific area – differentiating between domestic, dependent, exporting and extravert SMEs. The relationship between these two key aspects is also considered and tested using a multinomial logit model. The empirical analysis uses data from a survey among over 650 SMEs in two Spanish provinces: Barcelona, as an example of a high-income economy, and Seville, as an example of a comparatively backward area.

SMEs and entrepreneurial quality from a macroeconomic perspective

Purpose – The aim of this paper is to compare the particular characteristics of industrial SMEs in low‐ and high‐income regions from the perspective of their “entrepreneurial quality”.Design/methodology/approach – Based on three groups of factors, (personal characteristics of entrepreneurs, entrepreneurial orientation and productive dependence of firms), which define entrepreneurial quality (EQ), the empirical analysis is focused on testing whether industrial SMEs in three Spanish regions with low per capita income present different EQs to those of industrial SMEs in three other Spanish regions with high per capita income. Data was obtained from a survey addressed to the person in the role of entrepreneur in each of these firms. Since the dependent variable is dichotomous, the logistic regression model is applied in this study.Findings – Results show there is a relationship between the regional levels of development and the entrepreneurial quality of the industrial SMEs. In low‐income regions, the level o...

The entrepreneur in the regional innovation system. A comparative study for high- and low-income regions

ABSTRACT This paper investigates the influence of entrepreneurs’ characteristics on innovation in regions with different levels of development. By doing so, this work seeks to contribute to a better understanding of the role of entrepreneurs in the functioning and performance of regional innovation systems. The influence of entrepreneurs’ personal characteristics and their perceptions of the business environment on firm innovation are investigated via a survey of companies carried out in six Spanish regions. The results allow the identifying of significant differences in the main determinants of innovation in the high-income regions and low-income regions studied. Entrepreneurs’ generalized trust stimulates innovation only in high-income regions, where necessity motivation has also a negative effect on innovation. Growth ambition seems to play a highly positive role only in the case of low-income regions. Human capital and infrastructure are perceived by the entrepreneurs as the main bottlenecks for innovation in low-income regions, whereas in the case of high-income regions the legal, fiscal and financial systems are considered the key institutional barriers. These differences in the entrepreneurial factor should be taken into account in order to design and implement policies to stimulate and foster innovation in different regional contexts.

Regional Development and Structural Change: The Productivity Paradox of Spanish Peripheral Regions

Spanish objective 1 regions are mainly peripheral regions which traditionally have suffered from low accessibility to the main markets and low levels of education and entrepreneurial and management capacities. Once Spain became member of the EU the combined effects of competition in the so called “single” European market and the investments in transport and accessibility infrastructures as well as in education (tertiary education, vocational training and compulsory secondary education from 1994 onwards) boosted regional development in Spain. Spanish objective 1 regions have experienced a very important structural adjustment and a noticeable process of convergence with Europe. The effect of competition of the Central and Eastern European countries, putting aside the changes in the FDI flows, has not had an immediate impact on the Spanish regions. After joining the euro in 1999, the possibilities of generous funding at very low interest rates generated a very fast growth process during the 2000s. This growth cycle was mainly of the “extensive” type, boosted by a real state bubble which originated a huge expansion in the housing sector followed up by important increases in low productivity job creation. The competitive disadvantages of the Spanish regions have shown they side effects with the financial crisis, the burst of the real state bubble and the subsequent recession since the beginning of 2008 to the present times. The limitations of the structural change in the 2000s has placed the Spanish objective 1 regions in a very weak position to face the competition arising from other areas and countries with lower salaries and has deepened the consequences of the current crisis with unemployment levels close to 30%.

Cultural values and start-up rates in the Spanish provinces

Countries with similar economic situations exhibit persistently different entrepreneurial activity levels. Cultural values have been called for to explain this difference. They may condition individuals’ behaviour and significantly affect the society’s entrepreneurship rates. Nevertheless, few empirical studies have focused on this relationship at the regional or local level. This paper tries to fill this gap in the literature by analysing how specific cultural values (as defined by Schwartz, 1999) can influence the number of start-ups in the different Spanish provinces. Findings indicate the effect to be significant, contributing to explain up to 65.6% of the variance in start-up rates.