The impact of firm financing constraints on R&D over the business cycle

Arbeitspapier

The paper studies financing constraints for R&D over the latest boom and bust episode in Central and Eastern Europe (CEE). Given that financial and venture capital markets in CEE are thin in comparison to those in high-income economies and that many of CEE countries experienced a credit crunch during the last recession, it is proposed that financing constraints have a significant adverse effect on R&D activity in these countries. The paper uses two complementary firm-level data-sources from ten CEE countries. The results suggest that the role of financing constraints for R&D expenditures in CEE countries is substantial, as the probability of credit constrained firms undertaking R&D activities is around 70% lower and firms' R&D expenditure cash flow sensitivity is very high. Despite the severity of the crisis, the adverse effect of financing constraints for R&D did not increase in the financial crisis. It is also confirmed that, conditional on credit constraints, firms' R&D activity is higher in a recession.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IOS Working Papers ; No. 348

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Management of Technological Innovation and R&D ; Economywide Country Studies: Europe ; Business Fluctuations; Cycles ; Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
• Thema: R&D financing constraints ; credit constraints ; business cycle ; Central and Eastern Europe

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Männasoo, Kadri ; Meriküll, Jaanika
• Ereignis: Veröffentlichung
• (wer): Institut für Ost- und Südosteuropaforschung (IOS)
• (wo): Regensburg
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/121263
• URN: urn:nbn:de:101:1-201603225119
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ