Sources of financing: Which ones are more effective in innovation–growth linkage?

Anabela M. Santos, Michele Cincera and Giovanni Cerulli

Economic Systems, 2024, vol. 48, issue 2

Abstract: The study assesses the impact of eight sources of financing (internal funds, bank loans, credit lines, trade credit, equity, grants, leasing and factoring) on innovation and firm growth. It provides evidence that not all external financing sources have the same impact on innovation and growth. Output additionality on turnover growth seems higher for equity financing. In contrast, employment growth appears to be more associated with financing sources linked to increased fixed assets or the solving of liquidity problems. The number of financing instruments used together also seems to matter, revealing the existence of complementarities.

Keywords: Financing; Innovation; Growth; Europe (search for similar items in EconPapers)
JEL-codes: O16 O31 O47 O52 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Working Paper: Sources of financing: Which ones are more effective in innovation–growth linkage? (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:48:y:2024:i:2:s0939362523001164

DOI: 10.1016/j.ecosys.2023.101177

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