This paper looks at the effects of demand uncertainty and stagnancy on firms’ decisions to engage in R&D activities and the amount of financial effort devoted to it. The paper contributes to the innovation literature in three respects: first, it adds to the revived debate on demand-pull...

This paper looks at the effects of demand uncertainty and stagnancy on firms’ decisions to engage in R&D activities and the amount of financial effort devoted to such activities. In so doing, the paper makes a number of contributions to the innovation literature: first, it adds to the recently...