Financial Constraints, Innovation Performance and Sectoral Disaggregation

Georgios Efthyvoulou and Priit Vahter

No 2012030, Working Papers from The University of Sheffield, Department of Economics

Abstract: How do the effects of financial constraints on innovation performance vary by sector and firm characteristics? This paper uses innovation survey data from eleven European countries to examine the heterogeneity of these effects. So far, there has been a lack of cross-country micro-level studies exploring the effects of financial constraints on innovation performance in Western Europe and only little research about the variability of such effects between the broad sectors of production and services. Our results suggest that the impact of direct measures of financial barriers differs in production and service sectors, and also by the firm's export orientation. In particular, financial constraints appear to have more pronounced negative effects in the production sector than in the service sector. Among different types of firms, the response to financial constraints seems to be stronger for non-exporters.

Keywords: financial constraints; innovation; firm heterogeneity (search for similar items in EconPapers)
JEL-codes: L1 L2 O1 O3 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2012-12
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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http://www.shef.ac.uk/economics/research/serps/articles/2012_030.html Updated version, December 2013 (application/pdf)

Related works:
Journal Article: Financial Constraints, Innovation Performance and Sectoral Disaggregation (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:shf:wpaper:2012030

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