Title:
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Financial constraints and the failure of innovation projects
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Author:
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Segarra Blasco, Agustí, 1958-; García Quevedo, José; Teruel, Mercedes
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Other authors:
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Universitat Rovira i Virgili. Departament d'Economia; Universitat Rovira i Virgili. Centre de Recerca en Economia Industrial i Economia Pública |
Abstract:
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Theoretical and empirical approaches have stressed the existence of financial constraints in
innovative activities of firms. This paper analyses the role of financial obstacles on the
likelihood of abandoning an innovation project. Although a large number of innovation
projects are abandoned before their completion, the empirical evidence has focused on the
determinants of innovation while failed projects have received little attention. Our analysis
differentiates between internal and external barriers on the probability of abandoning a
project and we examine whether the effects are different depending on the stage of the
innovation process. In the empirical analysis carried out for a panel data of potential
innovative Spanish firms for the period 2004-2010, we use a bivariate probit model to take
into account the simultaneity of financial constraints and the decision to abandon an
innovation project. Our results show that financial constraints most affect the probability
of abandoning an innovation project during the concept stage and that low-technological
manufacturing and non-KIS service sectors are more sensitive to financial constraints.
Keywords: barriers to innovation, failure of innovation projects, financial constraints
JEL Classifications: O31, D21 |
Publication date:
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2013 |
Subject (UDC):
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33 - Economia |
Subject(s):
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Innovacions tecnològiques Conducta organitzacional |
Rights:
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L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: http://creativecommons.org/licenses/by-nc-nd/3.0/es/ |
Pages:
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24 p. |
Document type:
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Working Paper |
Published by:
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Universitat Rovira i Virgili. Departament d'Economia
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Collection:
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Documents de treball del Departament d'Economia;2013-06
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