Research on public subsidies and new ventures’ use of bank loans forthcoming in "Economics of Innovation and New Technology"
Publikationen
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Access to financial resources is crucial for young firms to strive. To foster innovation and growth in these firms, governments address financing constraints by initiating public support programs. For such financial support to be effective, it is, however, important that firms be able to augment publicly provided resources with additional means. This study examines the relation between new ventures’ subsidy receipt and long-term bank loans. Studying new ventures founded between 2005 and 2009 in Germany, we test whether the subsidy itself facilitates access to bank loans. Applying econometric techniques that account for the endogenous nature of a subsidy receipt, we find that subsidized young firms are more likely to use bank loans and to have obtained a larger share of their financing mix from banks. We further show that this effect is stronger in highly information-opaque sectors. These results suggest that the effect may be attributed to an information value carried by the grant that is relevant to banks’ loan assessment procedures, especially when new venture value is difficult to judge.
Research and product or process development are two distinct, yet complementary innovation activities. Making use of a specific grant-based policy design that explicitly distinguishes between research projects, development projects, and mixed R&D projects, this study estimates the direct and cross scheme effects on both research and development investments of recipient firms. Positive cross scheme effects can be expected when research and development activities are complementary and financing constraints are more binding for research than for…
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This study sheds light on the unexplored phenomenon of multiple institutional affiliations using scientific publications. Institutional affiliations are important in the organisation and governance of science. Multiple affiliations may alter the traditional framework of academic employment and careers and may require a reappraisal of institutional assessment based on research outcomes of affiliated staff. Results for authors in three major science and technology nations (Germany, Japan and the UK) and in three fields (biology, chemistry, and…
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Academics are increasingly encouraged to acquire external grants to finance their research, and often hold grants from multiple funders concurrently to ensure the continuity of their work. However, there are concerns that inefficiencies occur when funding is received from multiple sponsors, especially when this originates from different sectors. This study investigates complementarities between public/non-profit and private sector sources of research funding with regard to academic output in terms of publications, research impact and research…
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We present empirical evidence suggesting that weak tax enforcement proxied by the extent of tax evasion in a country acts like a lower corporate tax rate in attracting profits of multinational corporations.
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This study investigates induced productivity effects of firms introducing new environmental technologies. The literature on within-firm organisational change and productivity suggests that firms can achieve higher productivity gains from adopting new technologies if they adapt their organisational structures. Such complementarity effects may be of particular importance for the adoption of greenhouse gas (GHG) abatement technologies. The adoption of these technologies is often induced by public authorities to limit the social costs of climate…
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R&D collaboration facilitates the pooling of complementary skills, learning from the partner as well as the sharing of risks and costs. Research therefore stresses the positive relationship between collaborative R&D and innovation performance. Fewer studies address the potential drawbacks of collaborative R&D. Collaborative R&D comes at the cost of coordination and monitoring, requires knowledge disclosure, and involves the risk of opportunistic behavior by the partners. Thus, while for lower collaboration intensities the net gains can be high,…
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