Internal vs External Financing of R&D |
| |
Authors: | Bougheas Spiros |
| |
Institution: | (1) The University of Nottingham, School of Economics, University Park, Nottingham, NG7 2RD, U.K |
| |
Abstract: | The empirical evidence suggests that while small firms in United States, United Kingdom and Canada rely on internal funds for financing R&D, similar firms in Japan, Germany and France have access to bank loans. In this paper, we analyze the financial decisions of small firms willing to invest in R&D. We find that their high ratio of intangible assets, along with the high risk nature of their investments, can explain their inability to raise debt in external capital markets. We also show that financing R&D with bank loans might be feasible, especially, if banks are willing to monitor the investment activities of their clients. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|