Emergence of Regional Entrepreneurship Through Hometown Tax Donation - Unique Regional Development System: Implications from Development of New Products and Improvement in Business Capabilities by Gift Providers -

22 Pages Posted: 10 Sep 2018  

Takaaki Hoda

Kobe Univerity

Yuichiro Kubo

Kobe University

Date Written: August 29, 2018

Abstract

Hometown Tax Donation is designed to bolster regional economies through the provision of reciprocal gifts by local businesses, and can be regarded as a unique SME policy which is not reliant on subsidies, but instead, offers businesses the incentive to develop attractive products and yields better results when businesses and municipalities collaborate closely. To assess its effectiveness, we surveyed certain gift providers on their efforts in new product development and advancement in business capabilities.

Results showed that the gift market is sowing the seeds for development of new products and businesses in rural areas, and is also boosting business capabilities in many cases. Meanwhile, certain companies have earned large revenues from gifts or are overdependent on gifts. It is therefore necessary to make Hometown Tax Donation function as a viable SME policy which incorporates an exit strategy.

Keywords: Regional Entrepreneurship, Hometown Tax Donation, Regional Development, New Business Development, New Product Development

JEL Classification: R11, R58, M13, M38, O18, O31, O35, O38

Suggested Citation

Hoda, Takaaki and Kubo, Yuichiro, Emergence of Regional Entrepreneurship Through Hometown Tax Donation - Unique Regional Development System: Implications from Development of New Products and Improvement in Business Capabilities by Gift Providers - (August 29, 2018). Available at SSRN: https://ssrn.com/abstract=3240432 or http://dx.doi.org/10.2139/ssrn.3240432

Takaaki Hoda (Contact Author)

Kobe Univerity ( email )

3-7-2 Shimiyoshiyamate
Higashinada-ku
Kobe, Hyogo 658-0063, Hyogo 657-8501
Japan

Yuichiro Kubo

Kobe University

2-1, Rokkodai-cho, Nada-ku
Kobe, 657-8501, 657-8501
Japan

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