Author, as appears in the article.: Garcia-Quevedo, JosÉ; Segarra-Blasco, AgustÍ; Teruel, Mercedes

Department: Economia

URV's Author/s: Segarra Blasco, Agustí / Teruel Carrizosa, Mercedes

Keywords: Financial constraints Failure of innovation projects Barriers to innovation

Abstract: Although many innovation projects are abandoned before completion, the empirical evidence has focused on the determinants of innovation, while failed projects have received little attention. This paper analyses the role of financial obstacles on the likelihood of abandoning an innovation project by potentially innovative Spanish firms for the period 2005-2013. Our analysis differentiates between the impacts of internal and external barriers on the probability of abandoning a project, and we examine whether these differ depending on the stage of the innovation process. Controlling for potential endogeneity, we use a bivariate probit model to take into account the simultaneity of financial constraints and the decision to abandon an innovation project. Our results show that it is during the conception stage that financial constraints have their greatest effect on the probability of abandoning an innovation project. In addition, the financial sources are not neutral across the innovation project lifecycle. During the design phase, Spanish firms are more sensitive to internal financial sources while, during the execution stage, they are more sensitive to external sources.

Thematic Areas: Social sciences, general

licence for use: https://creativecommons.org/licenses/by/3.0/es/

Author's mail: agusti.segarra@urv.cat agusti.segarra@urv.cat mercedes.teruel@urv.cat

Author identifier: 0000-0001-6316-3171 0000-0001-6316-3171 0000-0002-4104-7679

Record's date: 2023-09-24

Papper version: info:eu-repo/semantics/acceptedVersion

Link to the original source: https://www.sciencedirect.com/science/article/abs/pii/S0040162517307291

Licence document URL: http://repositori.urv.cat/ca/proteccio-de-dades/

Papper original source: 127 127-140

APA: Garcia-Quevedo, JosÉ; Segarra-Blasco, AgustÍ; Teruel, Mercedes (2018). Financial constraints and the failure of innovation projects. Technological Forecasting & Social Change, 127(), 127-140. DOI: 10.1016/j.techfore.2017.05.029

Article's DOI: 10.1016/j.techfore.2017.05.029

Entity: Universitat Rovira i Virgili

Journal publication year: 2018

Publication Type: Journal Publications