Innovative capability and financing constraints for innovation: more money, more innovation? KU Leuven
This study presents a novel empirical approach to identify financ-ing constraints for innovation based on the concept of an ideal test (Hall,2008). Firms were offered a hypothetical payment and asked to choose between alternatives of use. If they selected additional innovation projects,theymust have had some unexploited investment opportunities thatwere not profitable using more costly external finance. We attribute constraints for innovation ...