Title:
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Financial constraints and the failure of innovation projects
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Author:
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García Quevedo, José,; Segarra Blasco, Agustí,; Teruel Carrizosa, Mercedes; Xarxa de Referència en Economia Aplicada (XREAP)
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Abstract:
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Theoretical and empirical approaches have stressed the existence of financial constraints in firms' innovative activities. Although a large number of innovation projects are abandoned before their completion, the empirical evidence has focused on the determinants of innovation while failed projects have received little attention. This paper analyses the role of financial obstacles on the likelihood of abandoning an innovation project by using panel data of potential innovative Spanish firms for the period 2005-2013. Our analysis differentiates between internal and external barriers on the probability of abandoning a project and we examine whether the effects are different depending on the stage of the innovation process. Controlling for potential endogeneity, we use a bivariate probit model to take into account the simultaneity of financial constraints and the decision to abandon an innovation project. Our results show that financial constraints most affect the probability of abandoning an innovation project during the concept stage. |
Subject(s):
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-Empreses Finances |
Rights:
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open access
Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
https://creativecommons.org/licenses/by-nc-nd/4.0/ |
Document type:
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Working paper |
Published by:
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Xarxa de Referència en Economia Aplicada (XREAP)
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Share:
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Uri:
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https://ddd.uab.cat/record/169219
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