Financial constraints : routine versus cutting edge R&D investment

Preview

PDF
dp08005.pdf - Published
Download (248kB)

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
The title of a journal, publication series:	None
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.
Additional information:

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.

BASE: Binz, Hanna L. ; Czarnitzki, Dirk

Google Scholar: Binz, Hanna L. ; Czarnitzki, Dirk

Downloads per month over past year

You have found an error? Please let us know about your desired correction here: E-Mail

Show item