The aim of this study is to investigate if the French R&D tax credit targeted at small and medium-sized enterprises (SMEs) has a positive impact on innovative activity. The French institutional setting provides a unique research setting as the R&D tax credit targeted at SMEs only applies to expenditures incurred during the development phase of R&D projects instead of all eligible R&D expenditures. In order to explore the effectiveness of the French R&D tax credit, a regression discontinuity design (RDD) is applied by comparing targeted SMEs with larger firms not subject to the tax credit over the period 2014-2018. In general, we find that the French R&D tax credit has a positive impact on innovative activity. Moreover, SMEs react more strongly to this incentive in their growth stage. The findings suggest, however, that this effectiveness in increasing SMEs’ innovation does not persist over time.
The aim of this paper is to examine the causality between pairs of measures that describe the intensity of algorithmic trading, market liquidity and volatility for selected blue-chip companies from the Warsaw Stock Exchange, which were permanently included in the WIG20 index from January 1, 2020, to August 31, 2023. In the study, both daily and high-frequency intraday data are used. The research is based on fundamental concepts of information theory, namely entropy and transfer entropy. Additionally, Rényi entropy is used to examine the causal relationships between extreme values of the variables. Our results, based on Shannon’s transfer entropy, suggest that algorithmic trading affects liquidity and volatility. The main finding is that if the frequency increases, the number of companies for which information transfer is significant also grows. However, this relationship is not observed for extreme values, for which Rényi entropy is applied.
This research aims to examine the effect of financial inclusion on economic growth in Vietnam. Using panel data from 63 provinces during 2014–2020, estimations are conducted for both the full sample and across two income groups. Financial inclusion is measured by indicators capturing geographical penetration and using products and services in commercial banks and insurance. The difference-GMM estimation results demonstrate that financial inclusion captured by higher commercial bank branches and using bank accounts, saving passbooks, and ATM cards present significant positive effects on economic growth in Vietnam. In contrast, participating life and non-life insurance shows a non-significant effect. For high-income provinces, participating in life and non-life insurance positively affects economic growth. In addition, the study indicates robust effects of commercial bank branch penetration and using ATM cards in enhancing economic growth in both low-income and high-income localities.
The last two decades have been characterized by rapid developments in networking and clustering. The first clusters emerged spontaneously, led by internal forces oriented towards competition. Temporary clusters are much more dynamic, searching for othersources of competitive advantage, and cross national borders. This paper is an attempt to identify the effects of knowledge spillovers and knowledge transfer within regional business networks, especially business clusters. These eff ects are associated with the innovations which appear within such networks and clusters. The paper indicates those barriers and solutions that support innovativeness within the networks under study. Knowledge transfer within business networks that shape the innovative environment in the Wielkopolska region has been described using both a theoretical and practical approach. The findings and conclusions of the research provide an opportunity to increase business efficiency within business networks.
The COVID-19 pandemic had massive impacts on economic sectors. This paper explores the economic effects of COVID-19 on 150,000 Polish enterprises. The paper analyses financial data from the Polish National Court Register and explores heterogenous impacts brought by the COVID-19 pandemic across multiple sectors. Its innovative contribution lies in adopting a granular perspective to assess the sector-specific impacts of COVID-19. This approach distinguishes the paper from much of the existing literature, which predominantly emphasises global or macroeconomic outcomes. The paper compares financial ratios across 2019 and 2020, applying Wilcoxon and Mann-Whitney tests to measure changes in profitability, liquidity, working capital, and leverage ratios. Key findings indicate a disparity in revenues across sectors, with some showing resilience in adapting to pandemic-induced challenges. The analysis reveals that 28 PKD divisions experienced significant revenue reductions (up to −70% in tourism-related sectors), while 25 divisions experienced gains (up to +23% in Information Technology sectors).
