Financing constraints and R&D investments of large corporations in Europe and the USA
AbstractThis 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 variations are important for European firms while US ones do not appear to be financially constrained. In terms of policy implications, these results suggest improving the conditions for access to external capital to finance R&D activities in the EU.
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Bibliographic InfoPaper provided by Institute of Prospective Technological Studies, Joint Research Centre in its series JRC-IPTS Working Papers on Corporate R&D and Innovation with number 2010-03.
Length: 44 pages
Date of creation: Apr 2010
Date of revision:
Financial constraints; R&D investments; error-correction investment equations; system GMM panel data econometric models;
Other versions of this item:
- Michele Cincera & Julien Ravet, 2010. "Financing constraints and R&D investments of large corporations in Europe and the US," Science and Public Policy, Oxford University Press, vol. 37(6), pages 455-466, July.
- Michele Cincera & Julien Ravet, 2010. "Financing constraints and R&D investments of large corporations in Europe and the US," ULB Institutional Repository 2013/105617, ULB -- Universite Libre de Bruxelles.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-04 (All new papers)
- NEP-EUR-2010-06-04 (Microeconomic European Issues)
- NEP-INO-2010-06-04 (Innovation)
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- Francesco Bogliacino & Matteo Lucchese, 2011.
"Access to finance for innovation: the role of venture capital and the stock market,"
JRC-IPTS Working Papers on Corporate R&D and Innovation
2011-05, Institute of Prospective Technological Studies, Joint Research Centre.
- Francesco Bogliacino & Matteo Lucchese, 2011. "Access to finance for innovation: the role of venture capital and the stock market," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2011(4), pages 165-183.
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