Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249770 
Year of Publication: 
2017
Citation: 
[Journal:] Small Business Economics [ISSN:] 1573-0913 [Volume:] 48 [Issue:] 4 [Publisher:] Springer [Place:] Berlin [Year:] 2017 [Pages:] 931-951
Publisher: 
Springer, Berlin
Abstract: 
Using the Mannheim innovation panel, we investigate whether family firms have higher financial need and how this affects both innovation input and innovation outcomes such as firm or market novelties, or process innovation. Applying the CDM framework, we find that family firms are more likely to have a latent financial need for innovation, which means that they have innovation ideas which they have not implemented yet. We find that family firms have a significantly lower marginal innovation productivity in particular for innovations with radical character, i.e., market novelties. We conclude from this evidence that family firms have a comparative disadvantage in innovation projects that imply high risk and require high innovation capability.
Subjects: 
Innovation capability
Funding gaps
Financing restrictions
Family firms
CDM
JEL: 
D21
D22
G31
O30
O32
L26
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

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