This study presents a novel empirical approach to identify financing constraints for innovation based on the concept of …. If they selected additional innovation projects, they must have had some unexploited investment opportunities that were … not profitable using more costly external finance. We attribute constraints for innovation not only to lacking financing …

Although there seems to be consensus in the literature that venture capital investors increase the innovation output of … from seven European countries, we investigate which form of venture capital is most supportive of innovation. Our results … suggest that in companies financed by syndicates and by private venture capital investors, the innovation output increases …