Showing 1 - 9 of 9
We analyze financial constraints for Ramp;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 Ramp;D versus cutting-edge Ramp;D....
Persistent link: https://www.econbiz.de/10012725826
Subsidising research networks has become a popular instrument in technology policies, driven mainly by expected positive spillovers. In particular, the stimulation of Ramp;D co-operation between scientific institutions and industry is considered as most promising. In the context of policy...
Persistent link: https://www.econbiz.de/10012727047
This article investigates how a firm's financial strength affects its dynamic decision to invest in R&D. We estimate a dynamic model of R&D choice using data for German firms in high-tech manufacturing industries. The model incorporates a measure of the firm's financial strength, derived from...
Persistent link: https://www.econbiz.de/10013002220
Information about the success of a new technology is usually held asymmetrically between the research and development (R&D)-performing firm and potential lenders and investors. This raises the cost of capital for financing R&D externally, resulting in financing constraints on R&D especially for...
Persistent link: https://www.econbiz.de/10013055307
This study tests for financial constraints on Ramp;D investment and how they differ from capital investment. To identify constraints in the access to external capital, we employ a credit rating index. Our models show that internal constraints, measured by mark-ups, are more decisive for Ramp;D...
Persistent link: https://www.econbiz.de/10012711028
Economic theory suggests that financing constraints may occur due to capital market imperfections. These particularly affect investments in innovation projects as such projects are typically characterized by a high degree of uncertainty, complexity and specificity. Financing innovation...
Persistent link: https://www.econbiz.de/10014198373
Using firm-level data from the German manufacturing sector, we estimate a dynamic, structural model of the firm’s decision to invest in R&D and quantify the cost and longrun benefit of this investment. The model incorporates and quantifies linkages between the firm’s R&D investment, product...
Persistent link: https://www.econbiz.de/10014152023
We analyze the impact of subsidies on R&D expenditures in the financial crisis and beyond. The financial crisis has led to considerable turmoil in financing and, as a result, to restrictions of firms' access to external financing. Utilizing this fact, we identify and analyze financing...
Persistent link: https://www.econbiz.de/10013309766
Persistent link: https://www.econbiz.de/10013095547