Financial constraints and intangible investments: Do innovative and non-innovative firms differ?

Arbeitspapier

We investigate the extent to which financial constraints hamper the firms' investment in intangibles. Drawing on the extant literature, we maintain that a distinction should be kept between innovators and non-innovators. Moreover, we argue that such a distinction should be investigated along the whole spectrum of intangibles firms invest and by addressing the risks of reverse causality and simultaneity bias in the relationship. Through an original quasi-panel extension of a recent European Innobarometer survey, we estimate two sets of recursive bivariate probit models - for innovative and non-innovative firms' investments - from which interesting results emerge. Financial barriers hamper the investment of both kinds of firms only for R&D, design, and organisation and business processes. With respect to other intangibles, instead, financial barriers act only on innovators (or non-innovators) or are even absent. Furthermore, the hampering role of financial barriers distributes differently across different intangibles between innovators and non-innovators.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: JRC Working Papers on Corporate R&D and Innovation ; No. 07/2019

Classification and Topics

• Classification: Wirtschaft ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; Management of Technological Innovation and R&D ; Technological Change: Choices and Consequences; Diffusion Processes
• Subject: R&D ; intangibles ; innovation ; financial barriers

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Montresor, Sandro ; Vezzani, Antonio
• Event: Veröffentlichung
• (who): European Commission, Joint Research Centre (JRC)
• (where): Seville
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/244283
• Last update: 10.03.2025, 11:42 AM CET