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on Technology and Industrial Dynamics |
| By: | Fryges, Helmut (ZEW Mannheim); Kohn, Karsten (KfW Bankengruppe); Ullrich, Katrin (KfW Bankengruppe) |
| Abstract: | We investigate the interdependence of debt financing and R&D activities of young firms. Using micro-level data of the KfW/ZEW Start-up Panel, our estimation results show that firm characteristics are more important than personal characteristics of the founders for explaining young firms' leverage, whereas firm characteristics and human capital of both founders and employees heavily influence R&D intensity. Applying a bivariate Tobit model, we find that there is a positive interdependent relationship between the share of loan financing and R&D intensity. A higher share of loan financing allows for more R&D in young firms and, at the same time, a higher R&D intensity allows for a higher loan share. This relationship cannot be detected by merely estimating single-equation models for R&D intensity and debt financing. |
| Keywords: | innovation financing, capital structure, business start-ups, KfW/ZEW Start-up Panel, Germany |
| JEL: | G32 O32 L26 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6217&r=tid |
| By: | Ratbek Dzhumashev; Vinod Mishra; Russell Smyth |
| Abstract: | This paper examines the effect of exporting on firm survival for a panel of Indian IT firms. We show that exporting has competing effects on firm survival. On the one hand, exporting and investing in productivity are complementary activities, while on the other exporting activity is an additional source of uncertainty for the firm. We show that both effects influence survival, but operate at different points in time. Specifically, the hazard facing exporters is higher than non-exporters in the initial phase following entry into the export market, reflecting the fact that exporters are particularly vulnerable to shocks in the start-up phase. However, over time, exporters benefit more from productivity gains than non-exporters and the hazard facing exporters falls below that confronting non-exporters. |
| Keywords: | India, Firm survival, Information Technology, R&D, Exports |
| JEL: | L25 L86 C41 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2011-39&r=tid |