Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/294098 
Authors: 
Year of Publication: 
2022
Citation: 
[Journal:] European Research on Management and Business Economics (ERMBE) [ISSN:] 2444-8834 [Volume:] 28 [Issue:] 3 [Article No.:] 100195 [Year:] 2022 [Pages:] 1-10
Publisher: 
Elsevier, Amsterdam
Abstract: 
This paper uses Korea's internal data on R&D programs to analyze how the receiving of R&D impacts the amount of subsequent external financing for technological innovation received by R&D firms. We address sample selection and endogeneity issues that arise when estimating the impact of R&D policy by utilizing a matching method using unique features of Korea's R&D grant programs. Our empirical results show that firms that receive R&D grants further receive 22%-32% less external financing compared to those who do not receive R&D grants, though there are some differences in the statistical significance of the results based on the specification of the regression model. This is consistent with the view that R&D grants reduce firms' liquidity constraints, or that government support effectively crowds out funding from the financial market.
Subjects: 
External financing
Innovation policy
Liquidity constraints
R&D grant
JEL: 
D22
H32
O32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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