We analyze a sample of European high-tech entrepreneurial firms that received bank venture capital (BVC) financing between 1994 and 2004. We employ a “two-step” matching procedure in order to build a control group composed of (1) comparable firms that received venture capital financing from...

Informational frictions between borrowers and lenders are particularly acute for innovative firms undertaking high-risk projects. As a consequence, banks may end up denying credit to them. However, the literature on relationship finance predicts that a closer relationship between credit...

[It is widely acknowledged that firms performing R&D investments are very likely to undergo financial constraints (FC) due to their specific characteristics, which make external debt an imperfect substitute for internal finance,especially for small sized enterprises. This situation calls into...

The paper investigates to what extent the convergence of banks over risk-adjusted capital standards set by the new Basel Capital Accord may affect the way in which they screen innovative firms. It also gives an overview of the existing forms of credit support to R&D activities. The study is...

This paper investigates the relationship between finance and R&D for a panel of more than 1000 Italian manufacturing firms. While Italian firms obtain a significant share of their financing from debt, the results from a unique survey show that firms use virtually no debt to finance R&D. Because...

Patent backed securitizations are customized financial solutions characterized by a high level of complexity. Their evaluation involves the analysis of a variety of factors concerning the characteristics of the asset, the architecture and economics of the transaction, the stakeholders involved....