Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/47562
Authors: 
Kukuk, Martin
Stadler, Manfred
Year of Publication: 
1999
Series/Report no.: 
Tübinger Diskussionsbeiträge 159
Abstract: 
Using newly available data at the firm level, this study provides convincing evidence of the importance of financial constraints in explaining the timing of innovations in the German services sector. Based on a dynamic model of firms' optimal R&D behavior under financial constraints, we estimate various versions of an econometric specification of the model with dichotomous innovation data by using a univariate ordered probit model. Our results are consistent with the theoretical view that, because of capital markets imperfections, internal finance should be an important determinant of innovative activities by private firms in the manufacturing sector as well as in the services sector.
Subjects: 
Innovation
Financial Constraints
Ordinal Regressors
Indirect Inference Estimation
JEL: 
G30
O31
C4
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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