7th IOS Annual Conference: Firms and Social Change in Eastern and South-Eastern Europe. Historical, Political and Economic Perspectives
Datum: Donnerstag, 23.05. bis Samstag, 25.05.2019
Ort: Leibniz-Institut für Ost- und Südosteuropaforschung (IOS)
11th Joint IOS/APB/EACES Summer Academy on Central and Eastern Europe.
Dates: July 8-10, 2019
Location: Akademie für Politische Bildung Tutzing on Lake Starnberg near Munich
Call for papers
The Impact of Financial Resources on Corporate Inventions
Ein Vortrag von David Heller (Goethe-Universität Frankfurt am Main) im Rahmen der Seminarreihe des AB Ökonomie am IOS.
Datum: 15. Januar 2019
Zeit: 13.30 Uhr
Ort: Leibniz-Institut für Ost-und Südosteuropaforschung (IOS), Landshuter Str. 4 (Raum 109)
This paper empirically investigates the impact of financial resources on firm-level patenting. The study utilizes the European Commission’s effort to harmonize financial markets, the so-called Financial Service Action Plan, during the 2000s as a plausibly exogenous shift improving firms’ access to funding. First, I show that financial market harmonization leads to increased bank lending to ex ante financially constrained firms. Second, I study whether and how affected firms adjust their patenting activities in terms of several value-relevant characteristics. I find that increased funding is associated with more patents in quantitative terms but of lower average technological quality and value. Moreover, affected firms alternate towards filing fewer explorative (i.e. impactful and generally applicable) but rather incremental patents. These results illustrate a more multilayered impact of finance on inventive activities than commonly suggested. I thus provide novel insights on the role of financial resources as crucial input factor for firm-level inventions against the background of a recent political agenda.