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This paper explores the existence and importance of financing constraints for R&D investments in large EU and US manufacturing companies over the 2000-2007 period. The main results obtained by estimating error-correction equations suggest that the sensitivity of R&D investments to cash flow...
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Innovation in the European Union remains weak according to a number of key "input" indicators, especially R&D investment by the business sector, and there are relatively few signs of progress. From a firm-level perspective, Europe's innovation gap relative to the US results from an inappropriate...
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