Even though innovation subsidies and financial constraints are two closely related lines of research, the link between them is rather unexplored. This paper is, to our knowledge, the first to explicitly analyse both the allocation of innovation subsidies and their role in alleviating firms’...

An increasing body of literature is analyzing the causes of the decline in business dynamism in developed economies. However, they fail to consider the changing nature of creative destruction. Except for the US, previous research is based on new-century evidence, limiting the understanding of...