Testing biasedness of self-reported microbusiness innovation in the annual business survey.

This study tests for potential bias in self-reported innovation due to the inclusion of a research and development (R&D) module that only microbusinesses (less than 10 employees) receive in the Annual Business Survey (ABS). Previous research found that respondents to combined innovation/R&D surveys reported innovation at lower rates than respondents to innovation-only surveys. A regression discontinuity design is used to test whether microbusinesses, which constitute a significant portion of U.S. firms with employees, are less likely to report innovation compared to other small businesses. In the vicinity of the 10-employee threshold, the study does not detect statistically significant biases for new-to-market and new-to-business product innovation. Statistical power analysis confirms the nonexistence of biases with a high power. Comparing the survey design of ABS to earlier combined innovation/R&D surveys provides valuable insights for the proposed integration of multiple Federal surveys into a single enterprise platform survey. The findings also have important implications for the accuracy and reliability of innovation data used as an input to policymaking and business development strategies in the United States.

Are the problem spaces of economic actors increasingly virtual? What geo-located web activity might tell us about economic dynamism.

The principal questions this research will address are: 1) whether a higher propensity to visit websites of interest to actual or nascent entrepreneurs is associated with higher rates of new firms births in an area; 2) whether a higher propensity to visit websites of interest to those working on design problems is associated with the quality of business in terms of orientations toward design or innovation; and 3) whether a higher propensity to visit websites of interest to those pursuing arts as an avocation is associated with an increased ability to find nonobvious solutions that might be manifest in business quality. The unique data that allow examining these questions were compiled from billions of web hits by geo-located devices. These data are combined with both detailed establishment level data with reliable information on the innovation and design orientation of firms, and a longitudinal census of all establishments with a formal credit relationship in the U.S. The findings confirm that businesses located in areas with a high propensity to visit design and arts avocation websites are more likely to pursue more far ranging innovation and are more likely to integrate design into their innovation processes. Firm birth rates are higher in areas with a high propensity to visit websites of interest to entrepreneurs, and the existence of high growth firms is strongly associated with demonstrated interest in design and arts avocation websites. The possible uses of these nontraditional measures as indicators of economic dynamism are discussed.

Design, innovation, and rural creative places: Are the arts the cherry on top, or the secret sauce?

OBJECTIVE: Creative class theory explains the positive relationship between the arts and commercial innovation as the mutual attraction of artists and other creative workers by an unobserved creative milieu. This study explores alternative theories for rural settings, by analyzing establishment-level survey data combined with data on the local arts scene. The study identifies the local contextual factors associated with a strong design orientation, and estimates the impact that a strong design orientation has on the local economy. METHOD: Data on innovation and design come from a nationally representative sample of establishments in tradable industries. Latent class analysis allows identifying unobserved subpopulations comprised of establishments with different design and innovation orientations. Logistic regression allows estimating the association between an establishment's design orientation and local contextual factors. A quantile instrumental variable regression allows assessing the robustness of the logistic regression results with respect to endogeneity. An estimate of design orientation at the local level derived from the survey is used to examine variation in economic performance during the period of recovery from the Great Recession (2010-2014). RESULTS: Three distinct innovation (substantive, nominal, and non-innovators) and design orientations (design-integrated, "design last finish," and no systematic approach to design) are identified. Innovation- and design-intensive establishments were identified in both rural and urban areas. Rural design-integrated establishments tended to locate in counties with more highly educated workforces and containing at least one performing arts organization. A quantile instrumental variable regression confirmed that the logistic regression result is robust to endogeneity concerns. Finally, rural areas characterized by design-integrated establishments experienced faster growth in wages relative to rural areas characterized by establishments using no systematic approach to design.

Can Walking or Biking to Work Really Make a Difference? Compact Development, Observed Commuter Choice and Body Mass Index.

OBJECTIVES: Promoting active commuting is viewed as one strategy to increase physical activity and improve the energy balance of more sedentary individuals thereby improving health outcomes. However, the potential effectiveness of promotion policies may be seriously undermined by the endogenous choice of commute mode. Policy to promote active commuting will be most effective if it can be demonstrated that 1) those in compact cities do not necessarily have a preference for more physical activity, and 2) that current active commuting is not explained by unobserved characteristics that may be the true source of a lower body mass index (BMI). METHODS: Daily time-use diaries are used in combination with geographical characteristics of where respondents live and work to test 1) whether residents of more compact settlements are characterized by higher activity levels; and 2) whether residents of more compact settlements are more likely to bike or walk to work. An endogenous treatment model of active commuting allows testing whether reductions in BMI associated with walking or biking to work are in fact attributable to that activity or are more strongly associated with unobserved characteristics of these active commuters. RESULTS: The analysis of general activity levels confirms that residents of more compact cities do not expend more energy than residents of more sprawling cities, indicating that those in compact cities do not necessarily have a preference for more physical activity. The endogenous treatment model is consistent with walking or biking to work having an independent effect on BMI, as unobserved factors that contribute to a higher likelihood of active commuting are not associated with lower BMI. CONCLUSIONS: Despite evidence that more compact settlement patterns enable active commuting, only a small share of workers in these areas choose to walk or bike to work. In general, the activity level of residents in more compact cities and residents in more sprawling areas is very similar. But, there is a robust association between active commuting and lower body mass index that is not explained by unobserved attributes or preferences suggests that policies to promote active commuting may be effective. In particular, active commuting has a greater effect on BMI. Consequently, compact settlement appears to be an effective infrastructure for promoting more active lifestyles. The policy challenge is finding ways to ensure that this infrastructure is more widely utilized.