Credit Constraints and Innovation Activities: Empirical Evidence on Russian Enterprises
This article studies the relationship between the credit constraints on Russian enterprises and their decision to introduce product innovation, process innovation, and to spend on research and development (R&D). The evidence regarding the relationship between R&D spending remains...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Indonesia
2022-04-01
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| Series: | International Journal of Technology |
| Subjects: | |
| Online Access: | https://ijtech.eng.ui.ac.id/article/view/4835 |
| Summary: | This
article studies the relationship between the credit constraints on Russian
enterprises and their decision to introduce product innovation, process
innovation, and to spend on research and development (R&D). The evidence
regarding the relationship between R&D spending remains somewhat ambiguous
and could differ between countries. A cross-sectional macro dataset of the
World Bank Enterprises Survey in Russia in 2019 is used in a system of
seemingly unrelated regressions. The results show that the existence of credit
constraints is associated with a lower probability of introducing product
innovations and spending on R&D activities. Nevertheless, there is no
significant relationship between being credit constrained and the enterprise decision
to introduce process innovations. The importance of this article stems from the
fact that previous works showed that these relationships differ by country and
that these relationships are considered simultaneously, while other works
concentrate mainly on one of these relationships. |
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| ISSN: | 2086-9614 2087-2100 |