Innovation Capabilities and Financing Constraints of Family Firms

Dorotea Schäfer, Andreas Stephan and Jenniffer Solórzano Mosquera
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Dorotea Schäfer: DIW Berlin, Postal: Mohrenstraße 58, , 10117 Berlin, , Germany, http://www.diw.de/de/diw_01.c.100376.de/ueber_uns/menschen_am_diw_berlin/mitarbeiter/innen/mitarbeiter/innen.html?id=diw_01.c.10934.de&sprache=en
Jenniffer Solórzano Mosquera: Jönköping School of Economics, Postal: Jönköping University, Gjuterigatan 5, Box 1026, 551 11 Jönköping, Sweden

No 268, Ratio Working Papers from The Ratio Institute

Abstract: Using the 2007 Mannheim innovation survey, we investigate whether family firms are more financially constrained than other firms and how this affects both innovation input as well as innovation outcomes such as market and firm novelties or process innovations. Based on the CDM framework, estimation of the recursive system of equations shows that family businesses are more likely to be constrained and have, on average, lower innovation input. Surprisingly, however, this does not reduce their innovation outcomes as, on average, family firms have the same level of innovation outcomes as nonfamily firms.

Keywords: Innovation; Capability; Financing Constraints; Family Firms; CDM (search for similar items in EconPapers)
JEL-codes: D30 G32 O32 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2016-02-22
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http://ratio.se/publikationer/working-paper-no-238 ... nts-of-family-firms/ (application/pdf)

Related works:
Working Paper: Innovation Capabilities and Financing Constraints of Family Firms (2015)
Working Paper: Innovation Capabilities and Financing Constraints of Family Firms (2015)
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