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...

This paper studies the impact of process and product innovations introduced by firms on employment growth in these firms. A simple model that relates employment growth to process innovations and to the growth of sales separately due to innovative and unchanged products is developed and estimated...

The COVID-19 pandemic has affected firms in all economies worldwide. We investigate the impact of the pandemic on firms’ innovation activities. Employing data from a representative sample of German firms, we find consistently with real options theory that negatively affected firms...