Financing Instruments and Challenges for Innovation in the EU

Alessio Mitra (), Valentina Di Girolamo () and Erik Canton ()
Additional contact information
Alessio Mitra: European Commission
Valentina Di Girolamo: European Commission
Erik Canton: European Commission

EU research and innovation paper series from Directorate General for Research and Innovation (DG RTD) of the European Commission

Abstract: This paper studies the firm-level drivers of product, process, organisation and marketing innovation in the EU with panel data from 2009 to 2021. Employing conditional logit and linear probability models, we investigate how firms’ characteristics, firms’ sources of financing, and firm perception of different challenges influence their likelihood to innovate. In line with the academic literature, we find that firms’ size and profit level improve firms’ innovation performance, while firms’ age decreases it. We also observe that the effectiveness of different financing instruments varies considerably depending on whether the company is pursuing product, process, organisation or marketing innovation. Finally, innovative firms more frequently report access to finance and regulations as important challenges for their future, while the relevance of other challenges (e.g. the availability of skilled staff or finding customers) varies depending on what type of innovation activities companies are engaged in [2].

Keywords: Financing instruments; innovation challenges; firm-level innovation; product innovation; process innovation; organisation innovation; marketing innovation; access to finance; regulations; skilled staff; customers (search for similar items in EconPapers)
JEL-codes: C18 O32 O38 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2023-02
References: Add references at CitEc
Citations:

Downloads: (external link)
https://research-and-innovation.ec.europa.eu/knowl ... ges-innovation-eu_en (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eug:wpaper:ki-bd-23-001-en-n

DOI: 10.2777/019319

Access Statistics for this paper

More papers in EU research and innovation paper series from Directorate General for Research and Innovation (DG RTD) of the European Commission
Bibliographic data for series maintained by Paolo Pasimeni, Head of Unit, DG RTD unit G1 ().