The impact of the financial crisis on capital investments in innovative firms

Giebel, Marek; Kraft, Kornelius

doi:10.1093/icc/dty050

Cited by 12 publications

(11 citation statements)

References 60 publications

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“…Even students of "financing innovation" tend to adopt a microeconomic perspective on how market failures prevent a small set of innovative firms from getting enough funding (Hall & Lerner, 2010), but neglect innovation's interaction with financial stability. If anything, research in this area considers the opposite direction of causation, that is, how the 2007-2008 financial crisis and subsequent stimuli have affected innovation (Giebel & Kraft, 2019;Mundaca & Richter, 2015).…”

Section: Finance and Innovation: A Neglected Subfieldmentioning

confidence: 99%

Low‐carbon transition risks for finance

Semieniuk

Campiglio

Mercure

et al. 2020

WIREs Climate Change

217

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The transition to a low‐carbon economy will entail a large‐scale structural change. Some industries will have to expand their relative economic weight, while other industries, especially those directly linked to fossil fuel production and consumption, will have to decline. Such a systemic shift may have major repercussions on the stability of financial systems, via abrupt asset revaluations, defaults on debt, and the creation of bubbles in rising industries. Studies on previous industrial transitions have shed light on the financial transition risks originating from rapidly rising “sunrise” industries. In contrast, a similar conceptual understanding of risks from declining “sunset” industries is currently lacking. We substantiate this claim with a critical review of the conceptual and historical literature, which also shows that most literature either examines structural change in the real economy, or risks to financial stability, but rarely both together. We contribute to filling this research gap by developing a consistent theoretical framework of the drivers, transmission channels, and impacts of the phase‐out of carbon‐intensive industries on the financial system and on the feedback from the financial system into the rest of the economy. We also review the state of play of policy aiming to protect the financial system from transition risks and spell out research implications. This article is categorized under: Climate Economics > Economics and Climate Change

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Section: Finance and Innovation: A Neglected Subfieldmentioning

confidence: 99%

Low‐carbon transition risks for finance

Semieniuk

Campiglio

Mercure

et al. 2020

WIREs Climate Change

217

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“…Therefore, energy inflation is mostly demand-driven inflation while the role of the supply is not as significant. Additionally, high energy costs make businesses less willing to do innovative investments (Giebel & Kraft, 2018).…”

Section: Introductionmentioning

confidence: 99%

Investigation of Energy Inflation Dynamics in Pakistan: Revisiting the Role of Structural Determinants

Iqbal

Yasmin²,

Safdar

et al. 2021

RAMSS

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Enormous fluctuation has been observed in energy prices in recent years. This strong volatility in energy prices implies grave inferences for Pakistan’s economy as shown by its substantial dependence on imported fuels. In Pakistan, energy prices play a critical role in inflation determination also concluded in the study at hand. The index of energy inflation was constructed, and the role of various control variables such as board money, taxes, oil prices, energy import, and GDP has been elaborated. Current study endeavors to examine the determinants of energy inflation in Pakistan by using time-series data for 1991 to 2019. Unit root was tested by utilizing ADF, furthermore, the Bound test suggested ARDL cointegration for empirical analysis. Therefore, an increase in the demand for energy in economic activities in developing countries indicates an energy demand hence implies energy inflation. The government of Pakistan must focus on the role of these factors to control inflation and to enhance the welfare in the country.

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“…The journals that publish the most articles are Journal of Business Research (12 articles), Research Policy (10), Industrial and Corporate Change (9) and Technological Forecasting and Social Change (5 articles). Journal of Business Research [Hausman, Johnston, 2014;Makkonen et al, 2014;Petrakis, Kostis, Valsamis, 2015;Martin-Rios, Parga-Dans, 2016;Malik et al, 2019;Martinez, 2019;Ngo et al, 2019;Battisti et al, 2019;Brem, Nylund, Viardot, 2020;Osiyevskyy, Shirokova, Ritala, 2020;Ebersberger, Kuckertz, 2021;Weaven et al, 2021] Research Policy [Flippeti, Archibugi, 2011;Paunov, 2012;Archibugi, Filippetti, Frenz, 2013a;Makkonen, 2013;Amore, 2015;Brautzsch et al, 2015;Hud, Hussinger, 2015;Lee, Sameen, Cowling, 2015;Archibugi, 2017;Armand, Mendi, 2018] Industrial and Corporate Change [Mazzucato, 2013;Berchicci, Tucci, Zazzara, 2014;Máñez et al, 2014;Walrave et al, 2017;Ahn, Mortara, Minshall, 2018;Brancati et al, 2018;D' Agostino, Moreno, 2018;Cefis, Marsili, 2019;Giebel, Kraft, 2019] Technological Forecasting and Social Change [Sharif, 2012;Archibigu, Filippetti, Frenz, 2013b;Papadopoulos et al, 2013;Jung, Hwang, Kim, 2018;Kapetaniou, Samdanis, Lee, 2018;…”

Section: Figure 1 Identification Of Inclusion Criteriamentioning

confidence: 99%

“…The distribution of articles by type of research design shows that 91.04% are empirical studies and 8.95% are conceptual ones (Table 6). Regression analysis is the statistical method widely used to explain the impact of the crisis on innovation [Archibugi, Filippetti, Frenz, 2013a;2013b;Madrid-Guijarro, García-Pérez-de-Lema, Van Auken, 2013;Berchcci et al, 2014;Giebel, Kraft, 2019] and impact of the financial crisis on innovative performance [Zouaghi, Sánchez, Martínez, 2018]. However, time-series data would provide deeper insights to assess the impact of the investment in innovation before, during, and after the crisis.…”

Section: Journal Of Economic Behaviourmentioning

confidence: 99%

Innovation in times of crisis: A systematic literature review

Smara¹

2022

Vestnik SPbSU. Management

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Today the world faces significant economic and financial crises, which have drawn firms into high levels of uncertainty and directly influences their innovation strategies. The literature on organizational decline reveals a lack of agreement about the effects of decline on innovation. This study aims to shed light on how economic crisis affects innovation and to provide a comprehensive picture of the innovation constraints and determinants with a focus on environmental factors. To add to the extant knowledge in the area of innovativeness in crisis, a systematic literature review using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses was conducted. 70 conceptual and empirical research articles published in the period 2000–2021 from highly ranked journals according to the Association of Business Schools rating were reviewed. The article presents three identified patterns related to a firm’s innovation behaviour in crisis: а cyclical behaviour in which most of companies reduce their costs and become more unwilling to engage in innovation activities, a neutral behaviour with a view to keep the status quo, and a counter-cyclical behaviour when companies tend to boost their innovation activities. The three innovation behaviours are contingent on several factors that hamper innovation. Furthermore, the findings suggest that innovation positively affects the performance of firms in the context of crisis and this impact is contingent upon the level of environmental turbulence. This review contributes to the extant knowledge on the adaptation of firms to adverse environments. The study offers a nuanced understanding of the main innovation strategies to respond to the economic downturn at the firm and country level, highlights benefits of innovation in highly turbulent settings and gives a detailed description of factors that play an important role in counteracting the negative effect of crisis on firms’ investment in innovations.

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The impact of the financial crisis on capital investments in innovative firms

Cited by 12 publications

References 60 publications

Low‐carbon transition risks for finance

Low‐carbon transition risks for finance

Investigation of Energy Inflation Dynamics in Pakistan: Revisiting the Role of Structural Determinants

Innovation in times of crisis: A systematic literature review

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