Credit Constrained R&D Spending and Technological Change

Informed Finance and Technological Change: Evidence from Credit Relationships

This paper empirically investigates the effect of “informed finance” on technological change. We argue that the theoretical literature offers conflicting predictions on whether the information of financiers fosters or impedes firms’ innovation. Using data from a sample of Italian manufacturing firms, we find that the information of firms’ main banks, proxied by the duration of credit relationsh...

Technological Change and Technological Strategy

Money, Credit and Spending: Drawing Causal Inferences

It is widely accepted that loans cause deposits. Hitherto, though, the empirical evidence has come from bivariate causality tests which we know can give rise to invalid inference if the two variables are causally influenced by some third, omitted, variable. This is a real danger where loans and deposits are concerned since there is a substantial body of evidence that both are linked to GDP, or ...

The Impact of Technological Change on Health Care Cost Spending: an Evaluation of the Literature

The impact of medical technology on growth in health care spending has long been a subject of vital interest, particularly in the context of long-term projections of health spending, which must address the issue of the applicability of historical trends to future periods. The objective of this paper is to estimate an approximate range for the contribution of technological change to growth in he...

Uncertainty and Technological Change

I would like to begin with two generally accepted propositions: First, technological change is a major ingredient of long-term economic growth, and second, technological change is characterized by a high degree of uncertainty. Understanding the nature of these uncertainties and the obstacles to surmounting them is not a trivial matter. Rather, it goes to the heart of how new technologies are de...