While the extant innovation literature has provided extensive evidence of the so-called "demand-pull" effect, the … possible diverse impact of demand evolution on product vs process innovation activities has not been yet investigated. This … innovation. This prediction is then tested through a dynamic microeconometric model, controlling for R&D persistence, sample …

We analyze the effect of external financing and associated bankruptcy threat on the speed of product innovation in a … the R&D investment flow determines the distribution of the stochastic innovation time and at the same time influences the … debt in order to speed up innovation. Furthermore, we show that, due to the existence of financial frictions, the …