Financing Conditions, The Concept Of Innovation Capacity And The Innovative Activity Of Firms

In this paper a novel survey dataset allows the authors to use a direct measure for credit constraints as well as a direct measure for the innovative activity of a firm to identify the effects of credit constraints on the innovation behaviour of firms. Furthermore, the design of the survey questions and the panel structure of the dataset allow them to avoid problems commonly difficult to solve such as the existence of forward looking adjustments in a world of expectations or mutual causation, and moreover to analyze potential asymmetries in the effects of above average and below average credit conditions.