This paper examines the financing of innovations in small and medium sized enterprises. In contrast to other existing studies, the focus is on the proportion of bank credits and internal funds as parts of innovation expenditures. The regression results indicate financing constraints due to...

This article examines how SMEs finance their innovations. Against the background of financial theoretical considerations, the focus is on the share of internal funds, bank loans and subsidies on the volume of innovation expenditure. Particularly in the case of small as well as highly innovative...