Using unique micro-data on German firms, this paper estimates the effect of restrictive bank lending on innovation. In the German three-pillar banking system, comprised of commercial banks, credit unions, and savings banks, firms were differently affected in their ability to raise external debt...

Der Freistaat Bayern hat im Jahr 1999 mit der High-Tech-Offensive als erstes Bundesland in Deutschland eine landesweite »Clusterpolitik« eingeführt, die insbesondere auf Unternehmen in fünf Technologiefeldern ausgerichtet war. Die Politikmaßnahme sollte die Infrastruktur stärken und damit...

If one cluster increases local competitiveness, can politicians, by interlinking clusters, achieve an even better effect at the state level? To answer this question, the paper analyzes the "Cluster Initiative" introduced in 1999 by the Bavarian State Government. The purpose of the initiative was...

Using unique panel data on German manufacturing firms this paper shows the development of the bank's willingness to lend to businesses during the financial crisis and its effect on firm innovations. Due to differences in business practices commercial banks, credit unions and savings banks in...