Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/244283 
Year of Publication: 
2019
Series/Report no.: 
JRC Working Papers on Corporate R&D and Innovation No. 07/2019
Publisher: 
European Commission, Joint Research Centre (JRC), Seville
Abstract: 
We investigate the extent to which financial constraints hamper the firms' investment in intangibles. Drawing on the extant literature, we maintain that a distinction should be kept between innovators and non-innovators. Moreover, we argue that such a distinction should be investigated along the whole spectrum of intangibles firms invest and by addressing the risks of reverse causality and simultaneity bias in the relationship. Through an original quasi-panel extension of a recent European Innobarometer survey, we estimate two sets of recursive bivariate probit models - for innovative and non-innovative firms' investments - from which interesting results emerge. Financial barriers hamper the investment of both kinds of firms only for R&D, design, and organisation and business processes. With respect to other intangibles, instead, financial barriers act only on innovators (or non-innovators) or are even absent. Furthermore, the hampering role of financial barriers distributes differently across different intangibles between innovators and non-innovators.
Subjects: 
R&D
intangibles
innovation
financial barriers
JEL: 
O30
O32
O33
Document Type: 
Working Paper

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