Chrysanthi Balomenou (p)

Montserrat Manzaneque-Lizano

This Paper is a discussion literature review oriented research one, which is divided in 2 parts:
In the first part, it is presenting the Bank Recapitalisation as key pivot for the banking funding. Afterwards, via a through critical analysis it is examining (key research question) whether this strategy it could be considered as a necessary and or not sufficient condition for resumiong lending and consequently to strengthen the local entrepreneurship and support the real economy of the examining case studies. Under this umbrella, government-initiated bank rescue programs primarily focus on recapitalizing banks to boost their financial stability and ability to facilitate lending during economic downturns. In this framework, they are used the characteristic case studies like the ones of Japan, the United States, and Greece reveals varying approaches and outcomes. Indicatively it is referring here that Japan's slow response in the 1990s, with inadequate capital injections and delayed structural reforms, failed to resolve underlying issues like non-performing loans (NPLs). Conversely, the United States swiftly implemented the Troubled Asset Relief Program (TARP) during the 2007-08 crisis, aiming to stabilize banks and promote lending, though results varied across institutions. Whereas, Greece, facing external pressures, undertook multiple recapitalizations with stress testing and NPL resolution strategies, highlighting the importance of timely capital injections and comprehensive reforms. The learned lessons, deriving from the said analysis, emphasize the need for prompt, sufficient capitalization, proactive NPL management, and robust structural reforms to ensure banks can effectively support economic recovery and stability in future crises.

In the second part of the study, the research sample is enlarged as having been considered apart from Japan, USA and Greece and other European countries (like Germany, Italy, France and Spain). In this regards, it is interfered more into these case studies critical analysis, highlighting the good and bad practices and pinpointing the main features and key factors and reasons that have contributed, per country case study, to the successful or insufficient performance of each one of them. The research question of this part is relying on whether “ the U.S. and Europe Avoid a Lost Decade? Lessons from Japan’s Postcrisis Experience". The study underscores the significance of prompt bank recapitalization and structural reforms, contrasting US and German responses more positively with Japan's delayed actions. In conclusion, it provides insights into how distinct economic policies and structural issues have influenced recovery trajectories in these regions.

María del Carmen López Taravilla, Montserrat Manzaneque Lizano (p), Jesús Fernando Santos Peñalver, Julio Dieguez Soto, Usman Ali, Elena Merino-Madrid (p)

Jose Blanco-Álvarez

Innovation is crucial for economic growth and regional sustainability, particularly for small and medium-sized enterprises (SMEs), which play a significant role in the global economy (Audretsch et al., 2014). SMEs make up the majority of the business sector in many countries, contributing significantly to employment and economic production (European Commission, 2024). However, they face various barriers to innovation, including limited financial and human capital, and challenges in accessing knowledge networks and collaboration opportunities (Madrid-Guijarro et al., 2009).

The regional context in which SMEs operate influences their innovation potential. Research has shown that firms’ relationships with their environment determine their access to information, resources, and collaboration opportunities (Huggins & Thompson, 2013). The concept of embeddedness is particularly important in this regard, as firms’ integration into the local community and connections with local actors can either facilitate or hinder growth (Baù et al., 2019). Strong local embeddedness fosters trust and cooperation, which can enhance sustainability and regional cohesion (Basco, 2015). However, excessive embeddedness can limit access to external resources and reduce innovation potential (Camagni, 1991; Grabher, 1993).

This study examines the relationship between embeddedness and product innovation success in SMEs, with a focus on the moderating role of family management. It builds on existing literature on innovation and regional development, as well as research on organizational structure’s impact on innovation (De Massis et al., 2012; Pucci et al., 2020).

The empirical analysis focuses on Spanish SMEs, exploring different types of embeddedness, including local and civic, and their effects on product development. The study combines survey data with business database information and employs statistical models to analyze the relationships between embeddedness, family management, and innovation.

This research contributes to understanding the factors that drive product innovation in SMEs, providing insights into how regional context and organizational type influence innovation performance. It also opens avenues for further research on the interaction between internal and external factors in firms' innovation capacity (Chrisman et al., 2015; Labaki & Mustafa, 2023).

Jose Blanco-Álvarez (p), Nadia Campaniello

Amnon Frenkel

In the last two decades, the attraction and retention of the so-called creative individuals has been proposed as one of the keys to promote urban and regional development. Despite constituting a fuzzy term, the creativity component can be regarded as a specific type of human capital which is linked to innovation and entrepreneurship processes.
Against this broad consensus in recognizing their relevance, there are conflicting theories in how to maximize the number of creatives. Increasing the investment in education is a necessary but not enough condition as creativity might be driven to some extent by (unobserved) personal traits that cannot be induced or learned only through formal education. There is also empirical evidence showing that mobility increases with the skill level and so the net migration position is the main responsible for the observed agglomeration patterns.
Therefore, some argue than the existing productive structure is the key, as the labor demand of companies is the strongest pull factor for this high skilled (or creative) migration flows. Other theories recognize this point but defend that these individuals have valuable and scarce skills that increase their bargaining power and so they can choose their location considering other factors related to their well-being. A line of research stated that these creative individuals prioritize vibrant cultural scenes and tolerant environments where they can fully express themselves.
In this regard, the “bohemian hypothesis” employs an occupation-based definition of bohemians as those working in arts and entertainment industries and uses their spatial agglomeration as a proxy to signal a tolerant environment. Empirical evidence supporting this hypothesis has been scarce and mostly limited to descriptive analysis with macro data.
This paper employs fine granular data at ZIP code level to offer empirical evidence of the agglomeration of bohemians in New York City neighborhoods being correlated with startup formation rates in the period 2011-2016. The results are robust after controlling for human capital measures, alternative proxies for tolerance, income and living conditions, traditional and cultural amenities and the agglomeration of another economic activities. Furthermore, using full-count census data for 1940 and 1950 and taking advantage of the spatial persistence of creativity over time, we construct an IV where the historical presence of visual artists is interacted with contemporaneous migration flows. The results of these 2SLS regressions provide further support on the causal effect of tolerance on economic activity via their impact on the attraction and retention of creatives.

Amnon Frenkel (p)

Chrysanthi Balomenou

This research focused on co-working spaces in Tel Aviv, Israel's economic and cultural hub, which boasts the highest density of such facilities. The study aimed to assess the role of these shared workspaces in facilitating collaboration and stimulating entrepreneurial ventures among employees. A survey was distributed to 500 coworkers across 37 co-working spaces in the city. The findings shed light on the prevalence of collaboration within these spaces and their impact on knowledge sharing, nurturing entrepreneurial endeavors, and advancing employees' professional development.
The research findings reveal that a significant proportion of respondents reported involvement in formal collaborations, highlighting the spaces' role in fostering professional networks. This finding is central and noteworthy, underscoring the tangible role of co-working spaces in fostering collaborative efforts. The research results indicate that co-working spaces promote both formal and informal collaboration, knowledge transfer, entrepreneurial activities, and peer-to-peer communication.
Communication within co-working spaces is primarily informal, with an emphasis on the social dimension provided by informal relationships. Entrepreneurs and freelancers in co-working spaces are more likely to engage in formal collaborations compared to others. They believe that co-working spaces contribute greatly to knowledge transfer and encouraging entrepreneurial activity. They consult with other peers frequently and believe that the co-working space allows them to acquire skills that advance their careers.
Overall, the findings demonstrate the significant role of coworking spaces in fostering innovation, community, and professional development.