Financial Constraints for Innovation in Brazil

Latin American Business Review, 12(3), 165-185, october 2011

Posted: 22 Mar 2013

See all articles by Vicente Lima Crisóstomo

Vicente Lima Crisóstomo

Universidade Federal do Ceará

Félix J. López-Iturriaga

University of Valladolid - Department of Financial Economics and Accounting; National Research University Higher School of Economics - International Laboratory of Intangible-driven Economy

Eleuterio Vallelado

University of Valladolid; University of Valladolid

Date Written: 2011

Abstract

This paper analyzes the presence of financial constraints for investment in innovation in Brazil. Dynamic investment models are estimated for a panel dataset of 206 Brazilian nonfinancial firms in the period 1995-2006. Results show that innovation of Brazilian firms is subject to financial constraints in line with previous international evidence. Innovation of Brazilian firms is adversely affected by leverage and also depends on internally generated funds. The models presented incorporate relevant firm characteristics for financial constraints. Our findings suggest the need for further advances at micro and macroeconomic levels in Brazil to mitigate the observed financial constraints.

Keywords: innovation, investment in innovation, financial constraints, Brazil

JEL Classification: G31, G32, O31, D92

Suggested Citation

Crisóstomo, Vicente Lima and Lopez-Iturriaga, Felix Javier and Vallelado, Eleuterio, Financial Constraints for Innovation in Brazil (2011). Latin American Business Review, 12(3), 165-185, october 2011. Available at SSRN: https://ssrn.com/abstract=2236415

Vicente Lima Crisóstomo (Contact Author)

Universidade Federal do Ceará ( email )

Fortaleza
Brazil

HOME PAGE: http://www.ufc.br

Felix Javier Lopez-Iturriaga

University of Valladolid - Department of Financial Economics and Accounting ( email )

Avda. Valle Esgueva 6
47011 Valladolid
Spain
+34 983 184 395 (Phone)
+34 983 183830 (Fax)

HOME PAGE: http://www2.eco.uva.es/flopez

National Research University Higher School of Economics - International Laboratory of Intangible-driven Economy ( email )

Lebedeva,27
Perm, Perm 614070
Russia

Eleuterio Vallelado

University of Valladolid ( email )

Avda. Valle Esgueva 6
47011 Valladolid, 47011
Spain
983423387 (Phone)
983186484 (Fax)

HOME PAGE: http://eleuteriovallelado.blogs.uva.es/

University of Valladolid ( email )

8 C/Plaza de Santa Cruz
Valladolid, Valladolid 47002
Spain
+34983423387 (Phone)

HOME PAGE: http://eleuteriovallelado.blogs.uva.es/

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