Impact of Economic Crises on Innovation Activity: Firm Level Evidence from Patent Data
2009 (English)Report (Other academic)
Based on data from of 2,700 Swedish manufacturing firms, observed through the period 1997-2005, this paper shows that internal finance resources, measured by cash-flow, affect the propensity to apply for a patent as well as the number of patent applications. From a business cycle perspective, cash-flow only plays a role during and after economic contractions. In periods of economic expansion there is no significant association between internal finance and patent applications. Further, the sensitivity of patent applications to cash-flow is limited to firms with low equity-ratio. Among high equity firms the pattern of patent applications are robust over the business cycle.
Place, publisher, year, edition, pages
CECIS, The Royal Institute of Technology, Stockholm , 2009. , 24 p.
CESIS Working Paper Series in Economics and Institutions of Innovation, 200
Financing constraints; Innovation; Intellectual property rights, Firm-level panel data
IdentifiersURN: urn:nbn:se:kth:diva-70081OAI: oai:DiVA.org:kth-70081DiVA: diva2:485843
QC 201201312012-01-312012-01-302012-01-31Bibliographically approved