Does Innovation Affect Credit Access? New Empirical Evidence from Italian Small Business Lending

Andrea Bellucci, Ilario Favaretto () and Germana Giombini

No 104, IAW Discussion Papers from Institut für Angewandte Wirtschaftsforschung (IAW)

Abstract: In this paper we analyze the access to credit of innovative firms on the price and non-price dimensions of bank lending. Using information from two datasets, we use a propensity score matching procedure to estimate the impact of the innovative nature of firms on: (a) loan interest rates; (b) the probability of having to post collateral; and (c) the probability of overdrawing. Our analysis reveals that banks trade off higher interest rates and lower collateral requirements for firms involved in innovative processes. Further, innovative firms have a lower probability of being credit rationed than their non-innovative peers.

Keywords: innovative firms; interest rate; firm’s financing; relationship lending (search for similar items in EconPapers)
JEL-codes: D40 D82 E43 G21 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2014-05
New Economics Papers: this item is included in nep-ban, nep-cse, nep-ent, nep-ino, nep-mac, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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