Mark Freel

Small Firm innovation, growth and performance: Evidence from Scotland and Northern England

This article uses Ordinary Least Squares (OLS) estimation techniques of a large-scale survey to examine the effect of firms’ innovation activities on their growth performance. The survey, covering 1347 respondents, is the largest and most definitive assessment of enterprise in Scotland and Northern England. In this article we employ four measures of growth: growth in employment; growth in turnover; growth in productivity; change in the profit margin. These measures of growth are analysed separately for manufacturing and service firms. The models are re-estimated with the current sales and profit levels adjusted for the number of employees. The most emphatic findings highlight a positive relationship between novel product innovation and employment growth and, for manufacturing firms, at least in the short term, a negative relationship between product innovation (both incremental and novel) and growth in sales or productivity. By contrast, growing sales and productivity appear positively associated with incremental process introductions in service firms.

Small firm exporters in a developing economy context: evidence from Ghana

A cursory review of the industrial policies of most nations suggests that exporting matters. Identifying exporting firms and facilitating their endeavours (or encouraging others to emulate them) are familiar policy themes, and studies of the relationship between firm characteristics and the propensity to export are common in the academic literature. Yet, the context for the bulk of these studies is provided by developed economies. To the extent that international trade relies upon specialisation and that broad differences exist in the patterns of specialisation between developed and developing economies, one wonders how well findings may be generalised to a developing context. Drawing upon firm-level data from a recent survey of small enterprises in Ghana (n = 500), the current study is concerned with identifying the characteristics of exporters in the three main non-governmental sectors of the Ghanaian economy (manufacturing, services and agriculture). Our interest is in Ghanaian economic development imperatives and in the extent of congruence between the findings of this study and previous developed economy studies.