ITEM METADATA RECORD
Title: Financial constraints: Routine versus cutting edge R&D investment
Authors: Czarnitzki, Dirk ×
Hottenrott, Hanna #
Issue Date: 2011
Publisher: MIT Press
Series Title: Journal of Economics & Management Strategy vol:20 issue:1 pages:121-157
Abstract: We analyze financial constraints on R&D, where we account for heterogeneity among investments that has been neglected in previous literature. According to economic theory, investments should be distinguished by their degree of uncertainty, e.g. routine R&D versus cutting-edge R&D. Financial constraints should be more binding for cutting-edge R&D than for routine R&D. Using panel data we find that R&D spending of firms devoting a significant fraction of R&D to cutting-edge projects is curtailed by credit constraints while routine R&D investments are not. This has important policy implications with respect to the distribution of R&D subsidies in the economy.
ISSN: 1058-6407
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Department of Managerial Economics, Strategy and Innovation (MSI), Leuven
× corresponding author
# (joint) last author

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