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...

In this article, we analyse the microeconomic relationship between innovation and employment, using company data from the R&D Scoreboard for Europe covering 2000-2008. A reduced form labour demand equation is estimated. In the equation, R&D can account for both product and process innovation....