Hoewer, Daniel; Schmidt, Tobias; Sofka, Wolfgang - Deutsche Bundesbank - 2011
Information economics has emerged as the primary theoretical lens for framing financing decisions in firm R&D … investment. Successful outcomes of R&D projects are either ex-ante impossible to predict or the information is asymmetrically … distributed between inventors and investors. As a result, bank lending for firm R&D has been rare. However, firms can signal the …