Financing constraints and R&D investments of large corporations in Europe and the US

Science and Public Policy

Volumn 37, Issue 6, 2010, Pages 455-466

  Cincera, Michele ^a   Ravet, Julien ^a  

^a SOLVAY BRUSSELS SCHOOL OF ECONOMICS AND MANAGEMENT   (Belgium)

Author keywords

[No Author keywords available]

Indexed keywords

FIRM SIZE; INDUSTRIAL INVESTMENT; INNOVATION; MANUFACTURING; MULTINATIONAL ENTERPRISE; RESEARCH AND DEVELOPMENT; SCIENCE AND TECHNOLOGY; SENSITIVITY ANALYSIS; TECHNOLOGICAL DEVELOPMENT; TECHNOLOGY ADOPTION; TECHNOLOGY POLICY;

EUROPE; UNITED STATES;

EID: 77954859835     PISSN: 03023427     EISSN: None     Source Type: Journal    
DOI: 10.3152/030234210X508642     Document Type: Article

References (48)

1. Abel, A B and O J Blanchard. 1986. The present value of profits and the cyclical movements in investment. Econometrica, 54(2), 249-273.
2. Ackerlof, G A 1970. The market for 'lemon': quality, uncertainty and the market mechanism. Quarterly Journal of Economics, 84(3), 488-500.
3. Arellano, M and O Bover 1995. Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29-51.
4. Arellano, M and S Bond 1991. Some tests of specification for panel data: Monte Carlo evidence and application to employment equations. Review of Economic Studies, 58(2), 277-297.
5. Arellano, M and S Bond 1998. Dynamic Panel Data Estimation Using DPD98 for Gauss: A guide for Users. London: Institute for Fiscal Studies
6. Arrow, K 1962. Economic welfare and the allocation of resources for invention. In The Rate and Direction of Inventive Activity, R Nelson (ed.), pp 609-626. Princeton, NJ: Princeton University Press.
7. Blundell, R and S R Bond 1998. Initial conditions and moment restrictions in dynamic panel data. Journal of Econometrics, 87(1), 115-143.
8. Bond, S and C Meghir 1994. Dynamic investment models and the firm's financial policy. Review of Economic Studies, 61(2), 197-222.
9. Bond S, D Harhoff and J Van Reenen. 1999. Investment, R&D and Financial Constraints in Britain and Germany, Working Paper W99/05. London: Institute for Fiscal Studies.
10. Bond S, J Elston, J Mairesse and B Mulkay 1997. Financial Factors and Investment in Belgium, France, Germany and the U.K.: A Comparison Using Company Panel Data, NBER Working Paper 5900. Cambridge, MA: National Bureau of Economic Research.
11. Bosworth, D 1978. The rate of obsolescence of technical knowledge a note, Journal of Industrial Economics, 26(3), 273-279.
12. Bougheas, S, H Goerg and E Strobl date>2001. Is R&D Financially Constrained? Theory and Evidence from Irish Manufacturing. Nottingham, UK: School of Economics, University of Nottingham
13. Butzen, P, C Fuss and P Vermeulen 2001. The Interest Rate and Credit Channels in Belgium: An Investigation with Micro-Level Firm Data, Working Papers Research Series, No. 18. Brussels: National Bank of Belgium.
14. Cincera, M 2003. Financing constraints, fixed capital and R&D investment decisions of Belgian firms. In Firms' Investment and Finance Decisions: Theory and Empirical Methodology, P Butzen and C Fuss (eds.), pp 129-147. Cheltenham, UK: Edward Elgar.
15. Cincera, M 2005. The link between firms' R&D by type of activity and source of funding and the decision to patent, DULBEA Working Paper, Research series, No. 05-10.RS. Brussels: Department of Applied Economics, Université Libre de Bruxelles.
16. Cincera, M and O Galgau 2005. Impact of Market Entry and Exit on EU Productivity and Growth Performance. European Economy, Economic Papers No. 222, Brussels: Directorate General for Economic and Financial Affairs, European Commission.
17. Cincera, M and J Ravet 2010. Financing constraints and R&D investments of large corporations in Europe and the USA. IPTS Working Paper on Corporate R&D and Innovation, No. 03/2010. Luxembourg: Office for Official Publications of the European Communities.
18. Compustat Database 2009. Standard & Poor's, the McGraw-Hill Companies.
19. Czarnitzki, D 2006. Research and development in small and medium-sized German enterprises: The role of financial constraints and public funding. Scottish Journal of Political Economy, 53(3), 335-357.
20. European Commission 2009. The 2008 EU Survey on R&D Investment Business Trends, Joint Research Centre Institute for Prospective Technological Studies and Directorate General Research, JRC51800, EUR 23845 EN. Brussels: European Commission.
21. Fazzari, S M, R G Hubbard and B C Petersen 1988. Financing constraints and corporate investment. Brookings Papers on Economic Activity, 1, 141-195.
22. Fazzari, S M, R G Hubbard and B C Petersen 2000. Investmentcash flow sensitivities are useful: a comment on Kaplan and Zingales. Quarterly Journal of Economics, 115(2), 695-705.
23. Griliches, Z and J A Hausman 1986. Errors in variables in panel data. Journal of Econometrics, 31(1), 93-118.
24. Griliches, Z 1979. Issues in assessing the contribution of research and development to productivity growth. The Bell Journal of Economics, 10(1), 92-116.
25. Hall, B H 1992. Investment and Research and Development at the Firm Level: Does the Source of Financing Matter? NBER Working Paper No. 4096. Cambridge, MA: National Bureau of Economic Research.
26. Hall, B H 2005. The financing of innovation. In Blackwell Handbook of Technology and Innovation Management, S Shane (ed.). Oxford, UK: Blackwell.
27. Hall B H and J Lerner 2010. The financing of R&D and innovation. In Handbook of the Economics of Technical Change, B H Hall and N Rosenberg (eds.). New York: Elsevier.
28. Hall, B H and J Mairesse 1995. Exploring the relationship between R&D and productivity in French manufacturing firms. Journal of Econometrics, 65, 263-294.
29. Hall, B H, J Mairesse, L Branstetter and B Crepon 1999. Does cash flow cause investment and R&D: an exploration using panel data for French, Japanese and United States scientific firms. In Innovation, Industry Evolution and Employment, D Audretsch and A R Thurik (eds.). Cambridge, UK: Cambridge University Press.
30. Hall, B H and J Lerner 2010. Financing R&D and Innovation. In The Economics of Technical Change, Handbook of the Economics of Innovation, B H Hall and N Rosenberg (eds.). New York: Elsevier
31. Harhoff, D 1998. Are there financing constraints for R&D and investment in German manufacturing firms? Annales d'Economie et de Statistiques, 49/50, 421-456.
32. Himmelberg, C P and B C Petersen 1994. R&D and internal finance: a panel study of small firms in high-tech industries. Review of Economics and Statistics, 76(1), 38-51.
33. Hubbard, R G 1998. Capital market imperfections and investments. Journal of Economic Literature, 36(1), 193-225.
34. Jensen, M and W Meckling 1976. Theory of the firm: managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
35. Jorgenson, D W 1963. Capital theory and investment behaviour. American Economic Review, 53(2), 247-259.
36. Kaplan, S N and L Zingales 1997. Do investment-cash flow sensitivities provide useful measures of financing constraints. Quarterly Journal of Economics, 112(1), 169-215.
37. Kaplan, S N and L Zingales 2000. Investment-cash flow sensitivities are not valid measures of financing constraints. Quarterly Journal of Economics, 115(2), 707-712.
38. Mairesse, J, B Mulkay and B H Hall 1999. Firm-level investment in France and the United States: an exploration of what we have learned in twenty years, NBER Working Paper 7437. Cambridge, MA: National Bureau of Economic Research.
39. Moncada-Paternò-Castello, P, C Ciupagea, K Smith, A Tübke and M Tubbs 2009. Does Europe perform too little corporate R&D?, IPTS Working Paper on Corporate R&D and Innovation, No. 11/2009, European Commission, JRC 51955. Luxembourg: Office for Official Publications of the European Communities.
40. Mulkay, B, B H Hall and J Mairesse 2001. Investment and R&D in France and the United States. In Investing Today for the World of Tomorrow, H Heinz and R Strauch (eds.). New York: Springer Verlag.
41. Myers, S C and N S Majluf 1984. Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187-221.
42. OECD and EUROSTAT 1997. Oslo Manual, Proposed Guidelines for Collecting and Interpreting Technological Innovation Data. Paris: OECD.
43. Roodman, D 2006. How to do Xtabond2: An Introduction to Difference and System GMM in Stata, Working Paper 103. Washington DC: Center for Global Development.
44. Savignac, F 2008. Impact of financial constraints on innovation: what can be learned from a direct measure? Economics of Innovation and New Technology, 17(6), 553-569.
45. Schiantarelli, F 1996. Financial constraints in investment: methodological issues and international evidence. Oxford Review of Economic Policy, 12(2), 70-89.
46. Stiglitz, J E and A Weiss 1981. Credit rationing in markets with imperfect information. American Economic Review, 71(3), 393-410.
47. Stoll, H R 1984. Small firms' access to public equity financing. In Small Business Finance: Problems in the Financing of Small Business, P M Horvitz and R R Petit (eds.), pp 187-238. Greenwich, CT: JAI Press.
48. Windmeijer, F 2005. A finite sample correction for the variance of linear efficient two-step GMM estimators. Journal of Econometrics, 126(1), 25-51.