Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238616 
Year of Publication: 
2021
Series/Report no.: 
ADBI Working Paper Series No. 1259
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
Prior research shows that technology spillovers across firms increase innovation, productivity, and value. We study how firms finance their own growth stimulated by technology spillovers from their technological peer firms. We find that greater technology spillovers lead to higher leverage. This is the result of technology spillovers increasing asset redeployability, as evidenced by more collateralized borrowing and asset transactions. Borrowing costs also decrease. Exogenous variation in the R&D tax credits of other firms allows us to identify the causal effect of technology spillovers on a given firm.
Subjects: 
innovation
technology spillovers
research and development
financial policies
capital structure
asset redeployability
cost of debt
JEL: 
G12
G31
G32
G33
G34
O31
O33
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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