This paper introduces dynamics in the R&D to innovation and innovation to productivity relationships, which have mostly … individual effects and idiosyncratic errors correlated across equations and that differ in the way innovation enters the … information maximum likelihood using two unbalanced panels of Dutch and French manufacturing firms from three waves of the …

when firms face financial constraints, debt financing and innovation choices are not independent of firm characteristics …Using Dutch data we empirically investigate how financing and innovation vary across firm characteristics. We find that …, and R&D slows down. In the absence of financial constraints, however, as they raise debt, firms become less inclined to …