Financial constraints : routine versus cutting edge R&D investment


Binz, Hanna L. ; Czarnitzki, Dirk


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URL: http://ub-madoc.bib.uni-mannheim.de/1889
URN: urn:nbn:de:bsz:180-madoc-18898
Document Type: Working paper
Year of publication: 2008
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: O32 O31 ,
Subject headings (SWD): Forschung und Entwicklung , Finanzierungskontrolle , Panelanalyse
Keywords (English): R&D , Financial Constraints , Panel Data
Abstract: We analyze financial constraints for R&D, where we account for heterogeneity among investments which has been neglected in previous literature. According to economic theory, investments should be distinguished by their degree of uncertainty, e.g. routine R&D versus cutting-edge R&D. Financial constraints should be more binding for cutting-edge R&D than for routine R&D. Using panel data we find that R&D spending of firms devoting a significant fraction of R&D to cutting-edge projects is curtailed by credit constraints while routine R&D investments are not. This has important policy implications with respect to the distribution of R&D subsidies in the economy.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Binz, Hanna L. ; Czarnitzki, Dirk (2008) Financial constraints : routine versus cutting edge R&D investment. Open Access [Working paper]
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