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

Michele Cincera and Julien Ravet

This paper explores the existence and importance of financing constraints for R&D investments in large EU and US manufacturing companies over the 2000-2007 period. The main results obtained by estimating error-correction equations suggest that the sensitivity of R&D investments to cash flow variations are important for European firms while US ones do not appear to be financially constrained. In terms of policy implications, these results suggest improving the conditions for access to external capital to finance R&D activities in the EU.

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Year of publication:	April 2010
Authors:	Cincera, Michele ; Ravet, Julien
Publisher:	Seville, Spain : European Commission
Subject:	Financial constraints \| R&D investments \| error-correction investment equations \| system GMM panel data econometric models \| USA \| United States \| Investition \| Investment \| Panel \| Panel study \| Unternehmensfinanzierung \| Corporate finance \| Liquiditätsbeschränkung \| Liquidity constraint \| Momentenmethode \| Method of moments \| Investitionsentscheidung \| Investment decision

Extent:	1 Online-Ressource (circa 44 Seiten) Illustrationen
Series:	IPTS working paper on corporate r&d and innovation. - Seville (Spain) : European Commission, Joint Research Centre, Institute for Prospective Technological Studies, ISSN 1831-9408, ZDB-ID 2946854-1. - Vol. no. 2010, 3
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
ISBN:	978-92-79-15718-9
Other identifiers:	10.2791/41316 [DOI] hdl:10419/202119 [Handle]
Classification:	C23 - Models with Panel Data ; E22 - Capital; Investment (including Inventories); Capacity ; O31 - Innovation and Invention: Processes and Incentives
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011980362