Innovative Activity and Access to Finance of SMEs: Views and Agenda

Abstract

A rapidly growing body of research applies survey methods to examine the ability of SMEs to obtain external financing. These studies focus on firmspecific characteristics and demonstrate the impact of such ability on their own growth and overall economic growth, among other outcomes. However, the use of external financing is of crucial importance, especially whether SMEs can adopt innovation when they succeed in getting a loan. This paper reviews this literature that is not as extensive as the one focusing on typical investments with two purposes. First, we summarize recent work, providing a guide to its methodologies, datasets, and findings. Second, we consider applications of the literature in innovation, including insights for policymakers that seek to assess the potential economic effects of investments in innovation.

What else lies behind the credit rationing? Exploring the issue of employment

“…In this framework, the emphasis on capital market imperfections may have an important negative effect on real economic variables such as investment (Tybout, 1983; Oliner and Rudebusch, 1992; Carpenter and Rondi, 2000; Drakos and Kallandranis, 2005a, 2005b; Campello et al , 2010; Gerlach-Kristen et al , 2015; Kallandranis, 2019; Kallandranis et al , 2020 etc. ), real growth rates (Blinder and Stiglitz, 1983; Bencivenga and Smith, 1993), exports (Arkolakis, 2010; Cheng et al , 2021; Pietrovito and Pozzolo, 2021), productivity (Yu and Fu, 2021), inflation (Gao et al , 2012; Akinkoye et al , 2015), R&D and innovation activities (Santos and Cincera, 2022; Vlassas et al , 2023) and employment (Benmelech et al , 2011; Chodorow-Reich, 2014; Duygan-Bump et al , 2015).…”