Research and development: financial constraints and the role of public funding for small and medium-sized enterprises

Arbeitspapier

This paper presents microeconometric evidence on financing con-traints for research and development activities in German small and medium?sized firms (SME). Special attention is paid to the role of public R&D subsidies. For this purpose SME in Western and East-ern Germany are compared because these regions are very different in their supply of public R&D funding. It turns out that Western German SME are financially constrained in their R&D activities by both internal and external resources. In Eastern Germany, firms are not sensitive to external constraints, possibly due to high public R&D subsidies. The results suggest that R&D in Eastern Germany is to a large extent driven by public subsidies since the German re?unification in 1990 and that the usual financial market mechanisms are repealed with respect to R&D in this region.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 02-74

Classification and Topics

• Classification: Wirtschaft ; Technological Change: Government Policy ; Innovation and Invention: Processes and Incentives ; Single Equation Models; Single Variables: Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
• Subject: Research and development ; financial constraints ; public funding ; SME ; censored regression models ; Industrielle Forschung ; Forschungsfinanzierung ; Verschuldungsrestriktion ; Klein- und Mittelunternehmen ; Forschungssubvention ; Schätzung ; Alte Bundesländer ; Neue Bundesländer ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Czarnitzki, Dirk
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/24372
• Last update: 10.03.2025, 11:42 AM CET