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

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

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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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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