Financial Constraints and Other Obstacles: Are They a Threat to Innovation Activity?

20 Pages Posted: 30 Jan 2008

See all articles by Pierre Mohnen

Pierre Mohnen

Maastricht University - UNU-MERIT

Franz C. Palm

University of Maastricht - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Sybrand Schim van der Loeff

University of Maastricht

Amaresh Kumar Tiwari

University of Tartu - Faculty of Economics and Business Administration

Date Written: January 2008

Abstract

In this paper we examine the importance of financial and other obstacles to innovation in the Netherlands using statistical information from the CIS 3.5 innovation survey. We report results on the effect of these obstacles on the firms' decision to abandon, prematurely stop, seriously slow down, or not to start an innovative project. These results are compared with those from other studies in the Netherlands and other countries. We end with a discussion of policy measures that have been taken to overcome, or at least attenuate these obstacles, such as R&D tax incentives, venture capital financing and policy mix packages.

Keywords: financial constraints, innovations, innovation policy

JEL Classification: O31, O38, D21

Suggested Citation

Mohnen, Pierre and Palm, Franz C. and van der Loeff, Sybrand Schim and Tiwari, Amaresh Kumar, Financial Constraints and Other Obstacles: Are They a Threat to Innovation Activity? (January 2008). CESifo Working Paper Series No. 2204, Available at SSRN: https://ssrn.com/abstract=1088649

Pierre Mohnen

Maastricht University - UNU-MERIT ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
31-43-3884464 (Phone)
31-43-3884495 (Fax)

Franz C. Palm (Contact Author)

University of Maastricht - Department of Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31-(0)43-3883833 (Phone)
+31-(0)43-3258535 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.cesifo.de

Sybrand Schim Van der Loeff

University of Maastricht ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Amaresh Kumar Tiwari

University of Tartu - Faculty of Economics and Business Administration ( email )

Narva Rd. 4-A214
Tartu 51009, 51009
Estonia

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