THE RELATIONSHIP BETWEEN FINANCIAL CONSTRAINTS AND INNOVATION, WITH A SUPPORTIVE ANALYSIS ON A SAMPLE OF FIRMS
THE RELATIONSHIP BETWEEN FINANCIAL CONSTRAINTS AND INNOVATION, WITH A SUPPORTIVE ANALYSIS ON A SAMPLE OF FIRMS
Author(s): Emanuele Santangelo AgapitoSubject(s): Economy, Micro-Economics, Socio-Economic Research
Published by: Universitatea SPIRU HARET - Faculty of Accounting and Financial Management
Keywords: Research and Development; Technological Innovation; Technological Change; Industrial Research; Innovation Management;
Summary/Abstract: The purpose of this study is to investigate the impact of financial constraints on firms' innovative activities. While this topic has been extensively studied in the economic literature, research, and development (R&D) activities present peculiarities that tend to discourage investment due to the uncertainty of outcomes. As a consequence, a firm may have little or no incentive to invest in research, despite the fact that it has the potential to increase the social surplus. To answer this research question, a probit regression analysis was conducted on a heterogeneous sample of European and Asian firms to examine how the presence of financial constraints affects the probability of innovation success.
Journal: Journal of Academic Research in Economics (JARE)
- Issue Year: 15/2023
- Issue No: 3
- Page Range: 523-544
- Page Count: 22
- Language: English
- Content File-PDF