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The Limits of Lending : Banks and Technology Adoption Across Russia

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  • Bircan, Cagatay
  • de Haas, R.

    (Tilburg University, Center For Economic Research)

Abstract

We exploit historical and contemporaneous variation in local credit markets across Russia to identify the impact of credit constraints on firm-level innovation. We find that access to bank credit helps firms to adopt existing products and production processes that are new to them. They introduce these technologies either with the help of suppliers and clients or by acquiring external know-how. We find no evidence that bank credit also stimulates firm innovation through in-house R&D. This suggests that banks can facilitate the discussion of technologies within developing countries but that their role in pushing the technological frontier is limited.

Suggested Citation

  • Bircan, Cagatay & de Haas, R., 2015. "The Limits of Lending : Banks and Technology Adoption Across Russia," Discussion Paper 2015-011, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:d7a436de-83f6-4551-aaf9-06ec05d63b2b
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    References listed on IDEAS

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    Cited by:

    1. Bartz, Wiebke & Mohnen, Pierre & Schweiger, Helena, 2016. "The role of innovation and management practices in determining firm productivity in developing economies," MERIT Working Papers 034, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Chiacchio, Francesco & Gradeva, Katerina & Lopez-Garcia, Paloma, 2018. "The post-crisis TFP growth slowdown in CEE countries: exploring the role of Global Value Chains," Working Paper Series 2143, European Central Bank.

    More about this item

    Keywords

    Credit Constraints; firn innovation; technological change;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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