We analyze the effect of external financing and associated bankruptcy threat on the speed of product innovation in a … the R&D investment flow determines the distribution of the stochastic innovation time and the same time influences the … debt in order to speed up innovation. Furthermore, we show that, due to the existence of financial frictions, the …

homogeneous product. The firms invest in production capacities and simultaneously in R&D which determines their innovation rate … the cannibalization effect gives the smaller firm a higher innovation incentive. As a logical consequence we find that the …

We study in a dynamic framework how product innovation activities of a firm are influenced by its production capacity …

While the extant innovation literature has provided extensive evidence of the so-called "demand-pull" effect, the … possible diverse impact of demand evolution on product vs process innovation activities has not been yet investigated. This … innovation. This prediction is then tested through a dynamic microeconometric model, controlling for R&D persistence, sample …