Using a dynamic model of a step-by-step innovation race between financially constrained firms, I study how financial … constraints affect innovation activity. The novel theoretical results derive from an analysis of the interaction between the … incentive effect of competition on innovation and the effect competition has on the degree of credit rationing. I find that the …

Using a dynamic model of a step-by-step innovation race between financially constrained firms, I study how financial … constraints affect innovation activity. The novel theoretical results derive from an analysis of the interaction between the … incentive effect of competition on innovation and the effect competition has on the degree of credit rationing. I find that the …

consumer contexts in European countries show that culture has a significant effect on innovation diffusion and consumer … national culture. Moreover, this effect seems stronger for the relatively newer and more expensive innovation. …

consumer contexts in European countries show that culture has a significant effect on innovation diffusion and consumer … national culture. Moreover, this effect seems stronger for the relatively newer and more expensive innovation. …

This paper examines the impact of financial constraints on innovation for established firms. We make use of a direct …

This paper examines the impact of financial constraints on innovation for established firms. We make use of a … specific survey. Thus, the existence of financial constraints for innovation is measured by a direct indicator whereas previous …

Political activism positively affects firm innovation. Firms that support more politicians, politicians on … activism on innovation. The results are consistent with the hypothesis that political activism is valuable because it helps … reduce policy uncertainty, which, in turn, fosters firm innovation. Also consistent with this hypothesis, we show that …

, competition leads to faster innovation, because the investor has less of a need to delay expensive investments. The investor …

We examine how financial market development affects technological innovation. Using a large data set that includes 32 … development of equity markets and credit markets affects technological innovation. We show that industries that are more dependent … on external finance and that are more high-tech intensive exhibit a disproportionally higher innovation level in …