At the CONCORDi 6th European conference on corporate R&D and innovation, held in Seville on 27-29 September 2017, Anabela Santos and Michele Cincera of ULB presented their I3U-funded research on “Financing constraints and growth ambitions of innovative European firms”.
Their research focuses on identifying which internal and external factors can hinder access to finance and on assessing how far innovative behaviour can induce financing constraints. In the end, they concluded that innovation behaviour has a positive impact on financing constraints. For example, innovative firms compared to non-innovative ones have a 29-34 percent higher probability of perceiving access to finance as an extremely pressing problem. In addition, innovative and non-innovative firms have similar obstacles in accessing external finance.
To resolve some of these constraints and to improve firm growth, the researchers had two main policy recommendations. First, as a complement to direct or indirect support for R&D and innovation, innovative companies need financial support for daily activities. Second, making venture capital operations easier and providing access to credit lines and guarantees for loans could complement direct and indirect support to reduce the financing pressure on innovative firms in Europe.