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Financial Constraints and other Obstacles: Are they a Threat to Innovation Activity?

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  • Sybrand Schim van der Loeff
  • Pierre Mohnen
  • Franz Palm
  • Amaresh K. Tiwari

Abstract

In this paper we examine the importance of financial and other obstacles to innovation in the Netherlands using statistical information from the CIS 3.5 innovation survey. We report results on the effect of these obstacles on the firms’ decision to abandon, prematurely stop, seriously slow down, or not to start an innovative project. These results are compared with those from other studies in the Netherlands and other countries. We end with a discussion of policy measures that have been taken to overcome, or at least attenuate these obstacles, such as R&D tax incentives, venture capital financing and policy mix packages.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2204.

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Date of creation: 2008
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Handle: RePEc:ces:ceswps:_2204

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Keywords: financial constraints; innovations; innovation policy;

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References

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Citations

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Cited by:
  1. Filipe Silva & Carlos Carreira, 2009. "No Deep Pockets: Some stylized results on firms' financial constraints," GEMF Working Papers 2009-06, GEMF - Faculdade de Economia, Universidade de Coimbra.
  2. Polder, Michael & Veldhuizen, Erik & Bergen, Dirk van den & Pijll, Eugène van der, 2009. "Micro and macro indicators of competition: comparison and relation with productivity change," MPRA Paper 18898, University Library of Munich, Germany.
  3. Filipe Silva & Carlos Carreira, 2011. "Do financial constraints threat the innovation process? Evidence from Portuguese firms," GEMF Working Papers 2011-10, GEMF - Faculdade de Economia, Universidade de Coimbra, revised Oct 2011.
  4. Heike Belitz & Anna Lejpras, 2014. "Financing Patterns of Innovative SMEs and the Perception of Innovation Barriers in Germany," Discussion Papers of DIW Berlin 1353, DIW Berlin, German Institute for Economic Research.
  5. Werner Hölzl & Jürgen Janger, 2012. "Innovation Barriers across Firms and Countries," WIFO Working Papers 426, WIFO.
  6. Maria Teresa Costa-Campi & Néstor Duch-Brown & José García-Quevedo, 2013. "R&D drivers and obstacles to innovation in the energy industry," Working Papers 2013/23, Institut d'Economia de Barcelona (IEB).
  7. D'Este,Pablo & Rentocchini,Francesco & Vega Jurado,Jaider M., 2012. "The role of human capital in lowering barriers to engage in innovation: evidence from the Spanish innovation survey," INGENIO (CSIC-UPV) Working Paper Series 201206, INGENIO (CSIC-UPV), revised 03 Aug 2012.
  8. Rahmouni, Mohieddine, 2011. "Perception des obstacles aux activités d'innovation dans les entreprises tunisiennes
    [Perception of obstacles to innovation activities in Tunisian firms]
    ," MPRA Paper 18306, University Library of Munich, Germany.
  9. Hölzl, Werner & Janger, Jürgen, 2014. "Distance to the frontier and the perception of innovation barriers across European countries," Research Policy, Elsevier, vol. 43(4), pages 707-725.
  10. Sandra M. Leitner & Robert Stehrer, 2013. "R&D and Non-R&D Innovators in the Financial Crisis: the Role of Binding Credit Constraints," wiiw Working Papers 95, The Vienna Institute for International Economic Studies, wiiw.
  11. Pietro Alessandrini & Andrea Filippo Presbitero & Alberto Zazzaro, 2008. "Geographical Organization of Banking Systems and Innovation Diffusion," Mo.Fi.R. Working Papers 3, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  12. Brancati, Emanuele, 2013. "Innovation, financial constraints and relationship lending: evidence from Italy during the recent crises," MPRA Paper 50329, University Library of Munich, Germany.
  13. D’Este, Pablo & Iammarino, Simona & Savona, Maria & von Tunzelmann, Nick, 2012. "What hampers innovation? Revealed barriers versus deterring barriers," Research Policy, Elsevier, vol. 41(2), pages 482-488.
  14. Asso, Pier Francesco & Pipitone, Vito, 2010. "Ostacoli e determinanti dell’innovazione: un’analisi sulle imprese siciliane di successo," Working Papers Res 2/2010, Fondazione Res, revised 01 Dec 2010.
  15. Evens Salies, 2009. "A test of the Schumpeterian hypothesis in a panel Of European electric utilities," Documents de Travail de l'OFCE 2009-19, Observatoire Francais des Conjonctures Economiques (OFCE).
  16. Segarra Blasco, Agustí, 1958- & Teruel, Mercedes, 2010. "Are small firms more sensitive to financial variables?," Working Papers 2072/151623, Universitat Rovira i Virgili, Department of Economics.

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