Innovative capability and financing constraints for innovation more money, more innovation?


Hottenrott, Hanna ; Peters, Bettina


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URL: http://ub-madoc.bib.uni-mannheim.de/2619
URN: urn:nbn:de:bsz:180-madoc-26198
Document Type: Working paper
Year of publication: 2009
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: O31 O32 C35 ,
Subject headings (SWD): Deutschland , Forschungsfinanzierung , Risikokapital , Innovation , Probit-Modell , Schätzung
Individual keywords (German): Verschuldungsrestriktion
Keywords (English): Innovation , financing constraints , innovative capability , multivariate probit models
Abstract: This study presents a novel empirical approach to identify financing constraints for innovation based on the idea of an ideal test as suggested by Hall (2008). Firms were offered a hypothetical payment and were asked to choose between alternatives of use. If they choose additional innovation projects they must have had some unexploited investment opportunities that were not profitable using more costly external finance. That is, these firms have been financially constrained. We attribute constraints for innovation not only to lacking financing, but also to firms' innovative capability. Econometric results show that financial constraints do not depend on the availability of internal funds per se, but that they are driven by innovative capability. We find firms with high innovative capability but low financial resources to be most likely subject to financing constraints. Yet, we also observe constraints for financially sound firms that may have to put ideas on the shelf.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Hottenrott, Hanna ; Peters, Bettina (2009) Innovative capability and financing constraints for innovation more money, more innovation? Open Access [Working paper]
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