Template-type: ReDif-Paper 1.0
Author-Name: Tiwari A.K. 
Author-Name: Mohnen P. 
Author-Name: Palm F.C. 
Author-Name: Schim van der Loeff S. 
Author-workplace-name: UNU-MERIT
Title: Microeconometric evidence of financing frictions and innovative activity - a revision
Abstract: Using Dutch data we empirically investigate how financing and innovation vary across firm characteristics. We find that when firms face financial constraints, debt financing and innovation choices are not independent of firm characteristics, and RD slows down. In the absence of financial constraints, however, as they raise debt, firms become less inclined to innovate and the change in the propensity to innovate no longer varies with firm characteristics. We find that financing constraints faced, propensity to innovate, and RD intensity are not uniform across firm characteristics. A new Control Function estimator to account for heterogeneity and endogeneity has been developed.
Keywords: Multiple or Simultaneous Equation Models, Corporate Finance and Governance, Technological Change, Research and Development, Intellectual Property Rights 
Classification-JEL: G30, O30, C30
Series:  Working Papers
Creation-Date: 2013
Number: 2013-027
File-URL: https://unu-merit.nl/publications/wppdf/2013/wp2013-027.pdf
File-Format: application/pdf
File-Size: 877264
Handle: RePEc:unm:unumer:2013027