Investments in research and development (R&D) and innovations are proven to be vital catalysts for the successful transition into knowledge-based economies. Despite the growing importance attached to innovations and R&D, they have yet to receive enough scholarly attention in developing...

This paper examines whether companies' innovativeness affects the availability of capital and, therefore, whether this group is financially constrained. It uses an objective, indirect way of measuring financial constraints based on the assumption that financially restricted firms only invest...