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Innovation or imitation? The impacts of financial factors on green and general research and development

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  • Wu, Ruohan

Abstract

This paper empirically investigates the influences of financial factors (constraint, sources, and supports) on firms’ research and development (R&D). We separately consider general R&D and green R&D. Further, under each R&D, we distinguish between independent innovation and dependent imitation. We acquire firm-level data from Business Environment and Enterprise Performance Survey (BEEPS) between 2017 and 2019 and find that a stringent financial constraint in tandem with undiversified financing sources most severely impede both general and green R&D. Overall, innovation is more sensitive to financial factors than imitation; relatively, green innovation is the most sensitive while green imitation is the least.

Suggested Citation

  • Wu, Ruohan, 2023. "Innovation or imitation? The impacts of financial factors on green and general research and development," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 1068-1086.
    • Handle: RePEc:eee:reveco:v:88:y:2023:i:c:p:1068-1086
    DOI: 10.1016/j.iref.2023.07.048
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    Keywords

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    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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