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Title:R&D Investment and Financing Constraints of Small and Medium-Sized Firm PDF Logo
Authors:Czarnitzki, Dirk
Binz, Hanna L.
Issue Date:2008
Series/Report no.:ZEW Discussion Papers 08-047
Abstract:This study tests for financial constraints on R&D investment and how they differ from capital investment. To identify constraints in the access to external capital, we employ a credit rating index. Our models show that internal constraints, measured by mark-ups, are more decisive for R&D than for capital investment. For external constraints, we find a monotonic relationship between the level of constriction and firm size for both types of investment. Thus, external constraints turn out to be more binding with decreasing firm size. On the contrary, we do not find such monotonic relationships for internal constraints. Differentiation by firms? age does not support lower constraints for older firms.
Subjects:R&D Investment
Capital Investment
Financial Constraints
Panel Data
Censored Regression Models
JEL:O31
O32
Document Type:Working Paper
Appears in Collections:ZEW Discussion Papers
Publikationen von Forscherinnen und Forschern des ZEW

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