Access to Credit for Small Innovative Businesses

47 Pages Posted: 5 Oct 2017

See all articles by Lucia Dalla Pellegrina

Lucia Dalla Pellegrina

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS)

Serena Frazzoni

Andrea Vezzulli

UECE - Research Unit on Complexity in Economics

Date Written: November 2017

Abstract

Using data for a large sample of small firms collected through the 8th UniCredit Survey conducted in 2011, we investigate the extent to which banks of different size reward innovative firms, in terms of both access to lending and volume of credit granted. We find that more innovative firms are associated with weak credit rationing. Using instrumental variable techniques to manage the endogenous nature of innovation, we show that a large bank more strongly supports product innovation, whereas there is no substantial difference in the extent to which small and large banks provide credit to small firms undertaking process innovations.

Suggested Citation

Dalla Pellegrina, Lucia and Frazzoni, Serena and Vezzulli, Andrea, Access to Credit for Small Innovative Businesses (November 2017). Economic Notes, Vol. 46, Issue 3, pp. 411-458, 2017. Available at SSRN: https://ssrn.com/abstract=3048061 or http://dx.doi.org/10.1111/ecno.12084

Lucia Dalla Pellegrina (Contact Author)

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

Andrea Vezzulli

UECE - Research Unit on Complexity in Economics ( email )

ISEG/UTL, Rua Miguel Lupi 20
Lisboa, 1249-078
Portugal

HOME PAGE: http://pascal.iseg.utl.pt/~uece/peoplefellows.shtml

No contact information is available for Serena Frazzoni

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