The impact of the economic crisis on innovation: Evidence from Europe

Archibugi, Daniele; Filippetti, Andrea; Frenz, Marion

doi:10.1016/j.techfore.2013.05.005

Cited by 216 publications

(204 citation statements)

References 34 publications

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“…The Schumpeterian process of creative destruction will have two impacts (Archibugi et al 2013a). In the first place, firms will replace older products, processes and services with newer and more efficient versions.…”

Section: Cyclical Changes In Access To Financementioning

confidence: 99%

Access to finance for innovative SMEs since the financial crisis

2015

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In the wake of the 2008 financial crisis, there has been increased focus on access to finance for small and medium sized firms. Some evidence from before the crisis suggested that it was harder for innovative firms to access finance. Yet no research has considered the differential effect of the crisis on innovative firms. This paper addresses this gap using a dataset of over 10,000 UK SME employers. We find that innovative firms are more likely to be turned down for finance than other firms, and this worsened significantly in the crisis. However, regressions controlling for a host of firm characteristics show that the worsening in general credit conditions has been more pronounced for non-innovative firms with the exception of absolute credit rationing which still remains more severe for innovative firms. The results suggest that there are two issues in the financial system. First, we find evidence of a structural problem which restricts access to finance for innovative firms. Second, we show a cyclical problem has been caused by the financial crisis and impacted relatively more severely on noninnovative firms.

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Section: Cyclical Changes In Access To Financementioning

confidence: 99%

Access to finance for innovative SMEs since the financial crisis

2015

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“…One possible explanation is that universities are more willing to break radically with their past innovation during crises, perhaps acting as agents of creative destruction to a greater extent than companies (see Archibugi et al (2013a) and Archibugi et al (2013b)). Universities may have fewer institutional constraints stopping them from becoming radical innovators.…”

Section: Resultsmentioning

confidence: 99%

“…Paunov (2012) finds that many Latin American companies stopped innovation projects, while Archibugi et al (2013b) and Filippetti and Archibugi (2011) determine broad innovation expenditure reductions for European companies. Laperche et al's (2011) examination of French businesses finds them streamlining and prioritising R&D during the crisis.…”

Section: Introduction Of Innovations During the 2007-8mentioning

confidence: 99%

Introduction of Innovations During the 2007-8 Financial Crisis: US Companies Compared with Universities

Waters

2014

SSRN Journal

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Financing innovation presents informational and control problems for the financier, and different solutions are used for funding of US companies and universities. In this paper we examine how funding characteristics influenced the change in innovation during the 2007-8 financial crisis for both. We extend prior theories of external financing's effect on company performance during crises, firstly to university performance, and secondly to show the influence of time variation in aggregate funding. Empirical results are consistent with our theory: external dependence and asset intangibility had a limited effect on company innovation on entering the crisis, but increased university innovation. Overall, however, company patenting was more robust than university patenting, despite the out-performance being masked by respective portfolio characteristics.

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“…This has been found with reference to younger firms and foreign multinationals suffering export shocks. Archibugi, Filippetti and Frenz (2013a) investigated whether the 2008 financial crisis affected the composition of innovating firms in the EU-27 member states plus Norway and Switzerland. Applying the Shumpeterian hypotheses of creative destruction and technological accumulation, the analysis compares drivers of innovation investment before, during, and following from the crisis.…”

Section: Literature Reviewmentioning

confidence: 99%

R&D Spillover Effects on the Strategic Behavior of Large International Firms during the World Financial Crisis

Aldieri¹,

Aprile²,

Vinci³

2017

IJBM

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The aim of this study is to investigate the relationship between competition and innovation through the knowledge spillover effect. In particular, we investigate whether R&D competition is sensitive to economic shock. To this end, we consider a period of time related also to the 2008 financial crisis. We implement an empirical analysis of 879 worldwide R&D-intensive firms. In order to measure technological proximity, we use two approaches: one based on Jaffe industry weight matrix, relative to patents distributed across technology classes; one based on trade intensity between sectors using input-output matrix data. The empirical results show a positive effect of R&D externalities on competitive interactions before the beginning of crisis and a negative one after it. These findings are robust with respect to the procedure employed in the estimation method.

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The impact of the economic crisis on innovation: Evidence from Europe

Cited by 216 publications

References 34 publications

Access to finance for innovative SMEs since the financial crisis

Access to finance for innovative SMEs since the financial crisis

Introduction of Innovations During the 2007-8 Financial Crisis: US Companies Compared with Universities

R&D Spillover Effects on the Strategic Behavior of Large International Firms during the World Financial Crisis

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