Innovation Performance and Government Financing
نویسنده
چکیده
External financing is important when inventors and small technology-based firms commercialize their inventions. However, the private information of inventors about the quality of their products causes information asymmetries and moral hazard problems. To help compensate for potentially non-existing capital markets, the Swedish Government has intervened by offering loans with different terms to firms and inventors. This paper analyzes the association between various forms of external financing and performance in profit-terms when patents are commercialized. The empirical work is based on a patent survey sent to Swedish inventors and small firms, where the response rate is 80 %. The estimations show that projects with soft government financing in the R&D-phase have a significantly inferior performance compared to projects without such financing, whereas those receiving government loans on commercial terms perform as the average. Distinguishing between governmental financing alternatives with different terms makes it possible to draw the conclusion that government failure primarily depends on bad financing terms, rather than bad project selection. A policy implication is therefore that public loans should be granted on commercial terms already in the R&D-phase of projects. -------------------------------* Associate Professor; Research interests: entrepreneurship, small business, patents, service sectors. The author would like to thank Erik Mellander, Magnus Henrekson, Tino Sanandaji and the participants at the CBER conference in Copenhagen and the NCSB conference in Stockholm for constructive comments. Jakob Eliasson provided excellent research assistance. Marianne and Marcus Wallenberg’s Foundation and The Bank of Sweden are acknowledged for generous financial support.
منابع مشابه
ChinaŁs innovation financing system: Triple Helix policy perspectives
The purpose of this study is to examine the innovation financing system of China from a Triple Helix policy perspective. The analysis comparing the case with the USA, the world’s most innovative economy, provides interesting insights regarding the innovative performance of China. The study shows that while the Chinese government introduced many intervention policy initiatives after the country ...
متن کاملGovernments as Partners: the Role of Collaboration in Cleantech Startup Innovation
Governments around the world are working towards accelerating innovation in clean energy technologies to meet rising energy demand and mitigate climate change. Policymakers shape the ecosystem in which startups innovate in various ways, ranging from R&D grants to technology and market collaborations. However, beyond government financing for R&D and the steering of market demand, there is little...
متن کاملAccelerated Reforms in Healthcare Financing: The Need to Scale up Private Sector Participation in Nigeria
The health sector, a foremost service sector in Nigeria, faces a number of challenges; primarily, the persistent under-funding of the health sector by the Nigerian government as evidence reveals low allocations to the health sector and poor health system performance which are reflected in key health indices of the country.Notwithstanding, there is evidence that the private sector could be a key...
متن کاملModeling of the optimum level of financial provision of Ukrainian enterprises' innovative activities
The purpose of the article is the establishment of the tightness of the connection between the various sources of financing and the introduction of innovations at enterprises. In the process of research such scientific methods have been used: modeling – to determine the influence of the source of funding for innovation activities, on the number of new technological processes introduced and the ...
متن کامل