Did financial frictions stifle R&amp;D investment in Europe during the great recession?

Peia, Oana; Romelli, Davide

doi:10.1016/j.jimonfin.2020.102263

Cited by 19 publications

(10 citation statements)

References 52 publications

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“…Regarding the control variables, the results are significant only in the cases of the positive effect of the cash flow and the negative effect of restricted access to finance on R&D expenditures. The results support the findings of previous research on the effect of firm performance and resources on R&D (Brown et al, 2017;Alam et al, 2019;Peia and Romelli, 2022). The results for the rest of the control variables are not significant.…”

Section: Results Summarysupporting

confidence: 88%

“…, 2017; Alam et al. , 2019; Peia and Romelli, 2022). The results for the rest of the control variables are not significant.…”

Section: Resultsmentioning

confidence: 99%

“…9. Peia and Romelli (2022) indicate that bank finance matters for R&D investments during periods of tight credit supply, such as the ones that followed the 2007–2008 global financial crisis and the 2012 sovereign debt crisis in Europe.…”

Section: Notesmentioning

confidence: 99%

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The effect of institutions on R&D investment: the case of four mediterranean euro area states

Vlachos

2022

JAAR

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PurposeThis study investigates the impact of institutional factors on firms investing in R&D.Design/methodology/approachThe study uses data from the World Bank's Enterprise Surveys for the Republic of Cyprus, Greece, Italy and Portugal. A model with institutional factors as explanatory variables and firm performance factors as control variables is estimated with weighted least squares heteroscedasticity corrected regression. The reverse causality problem is addressed by using a two-stage least squares regression approach.FindingsThe findings indicate that institutional quality has a significant influence on firms' R&D expenditure. The results have several implications in relation to findings of previous research.Research limitations/implicationsThe inclusion of more countries that were affected by the European economic crisis will probably give more insights about the effect of institutional factors on R&D.Practical implicationsPolicy makers have to address short-comings in institutional quality, particularly in terms of the labor regulation burden. Policy makers should prioritize anti-corruption measures to foster an environment that would attract more R&D in the Republic of Cyprus and Greece.Originality/valueThis study contributes to the growing body of literature investigating the impact of institutional factors on R&D. It focuses on four developed European countries that bore the brunt of the European economic crisis and have to implement their recovery and resilience plans successfully, in order to recover from the effects of the COVID-19 pandemic on their economic activity.

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Section: Results Summarysupporting

confidence: 88%

“…, 2017; Alam et al. , 2019; Peia and Romelli, 2022). The results for the rest of the control variables are not significant.…”

Section: Resultsmentioning

confidence: 99%

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The effect of institutions on R&D investment: the case of four mediterranean euro area states

Vlachos

2022

JAAR

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“…In addition, it was evident to the WP TIP that R&D expenditure follows a mid to long term planning schedule which is usually not affected by short term events (Alfranseder, Dzhamalova, 2014 ). Kincso and Radosevic ( 2017 ) argue that the crisis has led countries to reconsider their STI policy mix composition by means of streamlining the number of policies in place and supporting co-funding of business R&D expenditure by public funds which aims at replacing otherwise decreasing volume of private funding due to financial constraints (Peia and Romelli, 2022 ). In the end, the 2008 financial crisis did not seriously affect R&D on broader scale industry-wide but did impact mainly those companies which were already under financial constraints anyway, e.g.…”

Section: Resultsmentioning

confidence: 99%

What semantic analysis can tell us about long term trends in the global STI policy agenda

2022

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The scope, complexity and the “volume” of knowledge accumulated render producing an overview of the core themes of science, technology and innovation policies difficult. Reviews of this policy domain mostly either refer to general issues without deep immersion into details or focus on specific narrower aspects. The paper uses semantic analysis to identify major themes of science, technology and innovation policies over the last three decades and to trace their evolution towards current policy setting. We use semantic tools for processing and analysing documents produced by one of the major and highly reputable international expert bodies, the OECD Working Party on Technology and Innovation Policy. We show that selected themes remain in the mainstream even though being affected by regular policy adjustments and refinements and which disappear or appear with new challenges and expected solutions. Other themes appear niche or exotic themes which are under discussion for some time only.

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“…Exogenous economic shocks such as the recent financial crisis have great impacts on R&D investments. While Bloom (2007) argues that R&D investment slows down during financial crisis due to the caution effect, Peia and Romelli (forthcoming) point out the increased level of financial friction as the cause of fall in R&D investment during financial crises. However, Eslamloueyan and Jafari (2019) argue that better institutional quality can help to circumvent financial friction and help to improve innovative activities during crises.…”

Section: Editorial Reportmentioning

confidence: 99%

Guest editorial: Institutions and R&D investment: prospects and challenges

Uddin

Alam

Yazdifar

2022

JAAR

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Did financial frictions stifle R&D investment in Europe during the great recession?

Cited by 19 publications

References 52 publications

The effect of institutions on R&D investment: the case of four mediterranean euro area states

The effect of institutions on R&D investment: the case of four mediterranean euro area states

What semantic analysis can tell us about long term trends in the global STI policy agenda

Guest editorial: Institutions and R&D investment: prospects and challenges

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