Financial Constraints and Other Obstacles: are they a Threat to Innovation Activity?

Abstract

In this paper we examine the importance of financial and other obstacles to innovation in the Netherlands using statistical information from the CIS 3.5 innovation survey. We report results on the effect of these obstacles on the firms' decision to abandon, prematurely stop, seriously slow down, or not to start an innovative project. These results are compared with those from other studies in the Netherlands and other countries. We end with a discussion of policy measures that have been taken to overcome, or at least attenuate these obstacles, such as R&D tax incentives, venture capital financing and policy mix pakages.

The factors constraining innovation performance of SMEs in Croatia

“…A good deal of research on constraints to innovation relies on the CIS data set. Examples are Mohnen, Palm, van der Loeff, and Tiwary (2008), Galia, Mancini, and Morandi (2012), Iammarino, Sanna-Randaccio, and Savona (2007), D 'Este, Iammarino, Savona, and von Tunzelmann (2008), to name just a few. Earlier contributions to the literature that are not based on CIS data include work of Piatier (1984) and later Hadjimanolis (1999Hadjimanolis ( , 2003.…”

“…Non-innovators are not in a position to fully perceive and experience constraints to innovation. Extant studies confirm that innovators perceive constraint at higher level than non-innovators (Mohnen, Palm, Shim van der Loeff, & Tiwary, 2008). DʹEste et al (2008) point out the importance of distinguishing between non-innovators that aspire to innovate and non-innovators that show no effort to innovate at all.…”

“…R&D investment in SMEs is more sensitive to financial constraints and SMEs abandon more R&D projects due to the inability to finance (Czarnitzki & Hottenrott, 2011). Financial constraints are a widely present obstacle to innovation activity despite all the steps taken to improve access to finance and alleviate this problem (Mohnen et al, 2008). Hyytinen and Toivanen (2005) provide evidence that public funding helps firms dependent on external finances to overcome financial obstacles and innovate.…”

Determinants of Innovation and Productivity in the Service Sector in Mexico

“…However barriers to innovation are challenging to interpret depending on the firm's degree of engagement in innovation. The more firms engage in innovation, the better they are at identifying and characterizing the importance of the barriers they encounter during the innovation process (Galia and Legros 2004;Mohnen et al 2008;Savignac 2008). None of the existing empirical studies in the CDM tradition has included barriers to innovation as independent variables affecting either the decision to engage in innovation or the innovation intensity of a firm.…”

La gestión de la innovación en las empresas vascas. El papel de las herramientas de gestión de la innovación en la eficiencia de la misma y en la de los resultados de innovación.

“…Además los modelos de regresión lineal múltiple desarrollados, han constado que ciertos grupos de técnicas y herramientas son las que específicamente influyen en mayor medida en la capacidad de innovación de las empresas (ver Tabla 170). Las técnicas identificadas, como relevantes en relación a la capacidad de innovación parecen confirmar lo expuesto por algunos autores en relación a la necesidad de poder financiar y argumentar económicamente los proyectos de innovación (Mohnen et al, 2008), la importancia de las gestión de proyectos en el desarrollo de la capacidad innovadora (Smeds, 2001), lo importante de la gestión de las personas y su conocimiento (Biloslavo, 2005), así como la importancia de la gestión de la tecnología en la capacidad de innovación (Prajogo and Ahmed, 2006b) .…”