Financing constraints and R&D investments of large corporations in Europe and the US

Michele Cincera and Julien Ravet

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: This paper explores the existence and importance of financing constraints for R&D investments in large EU and US manufacturing companies over the 2000 – 2007 period. The main results obtained by estimating error-correction equations suggest that the sensitivity of R&D investments to cash flow variations are important for European firms while US ones do not appear to be financially constrained. In terms of policy implications, these results suggest improving the conditions for access to external capital to finance R&D activities in the EU.

Keywords: Financial constraints; R&D investments; system GMM panel data econometric models (search for similar items in EconPapers)
Date: 2010-07-01
Note: This is a translation of: Financing constraints and R&D investments of large corporations in Europe and the US
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Citations: View citations in EconPapers (29)

Published in: Science & public policy (2010) v.37 n° 6,p.455-466

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Journal Article: Financing constraints and R&D investments of large corporations in Europe and the US (2010)
Working Paper: Financing constraints and R&D investments of large corporations in Europe and the USA (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/105617

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